Halo Studios Downsized as Microsoft Shifts Franchise to Activision

Microsoft has restructured its Halo franchise following significant layoffs across multiple divisions. The company eliminated 268 roles spanning Halo Studios, Xbox Game Studios management, and other first-party teams, according to reporting by gaming journalist Shinobi602.

Halo Studios has been reduced to a small team dedicated to community support for the series, while Activision assumes responsibility for developing the next Halo title. Xbox Chief Creative Officer Matt Booty confirmed the franchise will be overseen by a new, purpose-built team separate from Activision's Call of Duty operations.

The shift has drawn commentary from former Blizzard president Mike Ybarra, who praised the decision on social media. "Rob Kostich, Dave Stohl, Pat Kelly and team at Activision are rock star, old school game developers," Ybarra wrote, referring to Activision's president, executive vice president and head of development, and head of creative for Call of Duty respectively. He described the move as "the best news in a decade plus" for Xbox fans.

Ybarra added that the new leadership was "not afraid to take risks and deliver a Halo experience that blows people away and sets the stage for the next 10+ years." He concluded with "Props to Xbox for making this decision."

In a statement to GamesRadar+, Activision said: "Our goal is clear: make the greatest Halo game ever, worthy of its universe and legacy, while staying true to what made players love it in the first place. It is a bold ambition, one that this franchise deserves."

This restructuring is part of a broader Xbox realignment that has also affected other studios and properties under Microsoft's gaming division, marking the latest in a series of organizational changes at the company.