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Activision Takes Over Halo 7 Development as Microsoft Cuts 268 Jobs

Simon Ellis 2 min read

Activision takes over development of Halo 7 as Microsoft cuts 268 roles at Halo Studios. Rob Kostich aims to restore the franchise's legacy.

Activision Takes Over Halo 7 Development as Microsoft Cuts 268 Jobs
GAMES

Activision is taking the reins on the next mainline Halo game, shifting development away from Microsoft's internal studio. This move signals a major strategic reset for the franchise and directly impacts the future of Xbox-exclusive shooters. Players who have followed the series for decades will see a change in creative leadership that aims to restore the franchise's original appeal.

Activision assembles dedicated team while Microsoft eliminates 268 roles

The new project is expected to be titled Halo 7. Activision is assembling a dedicated team within its organization to lead the development effort. Microsoft's Halo Studios, formerly known as 343 Industries, will transition to a support role rather than heading the project. This restructuring separates the Halo development from the core Call of Duty operations, which remain unaffected.

The transition comes with significant internal costs for Microsoft. A memo from Chief Content Officer Matt Booty confirms that 268 roles across Halo Studios are being eliminated. Activision President Rob Kostich stated the goal is to make the greatest Halo game ever, worthy of its legacy. He emphasized that the new direction must stay true to what made players love the franchise in the first place.

The current development state of the game remains unclear. Sources indicate it is uncertain if any progress has been made on the title yet. We looked at the last Halo update earlier while tracking recent ecosystem changes, noting that balance and stability themes often dominate these transitions. For now, the focus is on the structural shift rather than gameplay details.

Activision will lead the next mainline Halo title as Microsoft restructures its gaming divisions. The studio is building a new team while reducing the existing Halo Studios workforce. The game's release date and specific features have not been confirmed.

Source: NotebookCheck