Microsoft Taps Activision for Next Halo Game Amid Xbox Layoffs

Microsoft is restructuring its Xbox game studios, laying off over 268 roles across Halo Studios and other first-party studios. The company has tapped Call of Duty publisher Activision to build the next Halo game, marking a significant shift in their gaming strategy.

The move comes as part of Microsoft's wider restructuring efforts, which include reports of hundreds more layoffs across the gaming division. In July, the company announced 3,200 layoffs through the fiscal year, and Booty says they are 'roughly three-quarters of the way through' that process.

Activision will lead a new team to develop the next Halo title, separate from ongoing development for Call of Duty. A small team at Halo Studios will continue supporting existing Halo games in-market, but no regional pricing or release window has been announced yet.