Microsoft is changing how it handles the Halo franchise. 363 Studios, later renamed Halo Studios, reportedly was reduced to around 30 employees after the latest round of Xbox layoffs. Reports say that this small team will continue supporting the Halo community and other Xbox projects. Activision, the company behind Call of Duty, is now developing the next mainline Halo game with a new team.
The change comes after Halo Studios reportedly showed Xbox executives an updated plan for Halo 7. The upcoming entry is planned to have a campaign, PvP and PvE multiplayer experiences, and Forge, Halo's in-game creation mode, which allows players to build multiplayer modes and levels. The studio was also reportedly working on possible Halo 2 and Halo 3 remakes and a standalone spinoff based on the First Strike novel. However, after the layoff, the future of these projects is now unclear. Activision is building a separate Halo team rather than using its existing Call of Duty teams.
Regarding this, Activision president Rob Kostich mentioned, “For Halo, our goal is clear: make the greatest Halo game ever, worthy of its universe and legacy, while staying true to what made players love it in the first place.” He continued, “It is a bold ambition, one that this franchise deserves. We have already begun assembling a purpose-built team, unique in capability and talent, ready and excited to deliver this next chapter with the community.”
Halo Studios is the franchise's main home for years. The latest move changes that setup. For Microsoft, the shift could help put more resources behind fewer teams. Activision already works with several studios on Call of Duty, allowing large projects to share staff and production resources. Halo could now use a similar setup.
Halo is part of a wider change at Xbox. Microsoft also combined Playground Games and Turn 10 for work across Forza and Fable. Bethesda took on a larger role, while Activision is handling more major projects.
For Xbox, the model puts more focus on shared resources and fewer separate teams. The Halo change shows how Microsoft is adjusting its game business. Major franchises may no longer stay tied to one studio from start to finish.