Microsoft Hands Halo Franchise to Activision Amid Xbox Studios Shake-Up
Microsoft has confirmed that it will be handing over development of its flagship Halo franchise to Call of Duty maker Activision, as part of a massive Xbox Studios shakeup.
The move comes after mass layoffs were announced today, with 268 jobs cut across Halo Studios, other first-party studios, and the XGS management layer. The majority of these cuts are at Halo Studios, which has been significantly restructured under new Xbox boss Asha Sharma's 'reset' plan to reach a billion people daily through video games by 2030.
Asha Sharma aims to turn around poor financial results for Xbox and collapsing profit margins by cutting costs and focusing on big franchises like Halo, Minecraft, and Fallout. The layoffs follow the initial 1,600 job cuts in July, with another 1,600 staff expected to lose their jobs this year.
The next mainline Halo game will be developed by a new team at Activision, separate from ongoing Call of Duty development plans. Activision president Rob Kostich stated that the company's goal is 'to make the greatest Halo game ever, worthy of its universe and legacy.'