Xbox cuts jobs, shifts Halo development to Activision
Xbox is implementing further job cuts and transferring the future development of its flagship Halo franchise to Activision as part of a wider restructuring.
Microsoft's gaming division, Xbox, is undergoing significant layoffs and making substantial changes to the production of its flagship Halo franchise. These moves are part of a broader "reset" that will see hundreds of employees depart.
The latest reductions impact the studio currently responsible for developing Halo games. Future titles in the series will now be handled by Activision, the publisher behind Call of Duty. Industry analysts have described the shift as "dramatic" and questioned its potential to revive the Halo series, once considered Xbox's "crown jewel."
Concerns also surround other Xbox studios. Ninja Theory, the developer of the award-winning Hellblade games, faces potential closure as acquisition talks have reportedly failed. Xbox had announced in July its intention to undertake the most significant restructure in its history, originally planning to cut 3,600 jobs.
Xbox CEO Asha Sharma previously stated that the company's gaming division had not been "healthy," and while services like Game Pass have generated value, their growth has not been fast enough. External pressures, including rising computing and hardware costs, have also contributed to the company's challenges.
The Halo franchise has been a cornerstone of the Xbox brand since its inception in 2001. Xbox has stated that Halo Studios will continue to support existing games and the community, shifting focus away from new development. Activision's responsibilities will also expand to include overseeing other studios, such as World's Edge (Age of Empires) and Rare (Sea of Thieves).