Microsoft moves Halo development to Activision amid job cuts

Microsoft has officially transitioned the development of the Halo franchise to Activision. According to a staff memo from Xbox chief content officer Matt Booty, the next mainline Halo title will be managed by a newly formed, dedicated internal team at Activision that operates independently from existing Call of Duty studios.

This reorganization coincides with a significant workforce reduction within Microsoft’s gaming division. Approximately 268 jobs have been cut, affecting Halo Studios and other first-party teams. This move follows Microsoft’s $75.4 billion acquisition of Activision in 2023 and represents a strategic shift in how the company manages its major intellectual properties.

While the official development structure changes, a small team at Halo Studios will remain to support the existing Halo community and current titles. In a related development, modders have already demonstrated the potential for cross-franchise gameplay through a “proof of concept” mod for Halo: The Master Chief Collection that integrates Call of Duty: Modern Warfare mechanics into Halo 4.