Microsoft Hands Halo Over to Activision Amid Xbox Reboot

Microsoft is transferring the development of its popular Halo series to Activision as part of a major reorganization of its Xbox gaming business. This move will see future Halo games developed by a newly created Activision team, separate from those working on Call of Duty.

The decision also includes layoffs and restructuring at various studios, including 268 positions eliminated at Halo Studios and other internal Xbox Game Studios. This is the second wave of cuts, following 1,600 employees let go in July and another 1,600 planned for the next fiscal year.

Other changes include Sea of Thieves developer Rare and World's Edge being moved under Activision's management, while Obsidian will transfer from Xbox Game Studios to Bethesda Game Studios. Microsoft's casual games, including Minesweeper and Solitaire, are also shifting under King's management, the company behind Candy Crush.

Microsoft is merging Playground and Turn 10 studios, responsible for Fable and Forza respectively, as part of its Xbox reboot strategy. The new focus aims to reach over one billion people daily through well-known franchises like Minecraft, Halo, and Candy Crush, with a review of investment levels in Game Pass.

Activision President Rob Kostich stated the company's goal for Halo is to create 'the best game in the series' that lives up to its legacy. Activision is assembling a specialized team for the next stage of Halo's development.