The next Halo will be developed by Activision, featuring a brand-new, dedicated team entirely separate from Call of Duty. Xbox confirmed this and several other studio shifts on Tuesday (22), as part of the broader restructuring announced back in July. The internal memo from Content Director Matt Booty was shared via Xbox Wire.
What Happened?
Alongside the next Halo, Xbox has regrouped several first-party studios:
- World's Edge (Age of Empires) and Rare (Sea of Thieves) now fall under Activision.
- Obsidian enters the Bethesda umbrella, continuing work on Grounded alongside a brand-new Fallout project in partnership with Bethesda Game Studios.
- Microsoft Casual Games moves over to King.
- Playground Games and Turn 10 are merging into a single unified studio focused purely on Forza and Fable.
The company also confirmed the elimination of 268 roles across Halo Studios, other first-party teams, and management layers within Xbox Game Studios. According to Booty, the actions taken since July — including the divestment of certain studios — cover roughly three-quarters of the previously announced restructuring plan.
What Does This Mean for the Franchises?
In practice, Microsoft is consolidating major IPs under fewer internal publishing houses. The next Halo, Rare, and World's Edge are now aligned with Activision. Obsidian is officially moving closer to the Fallout universe, while Forza and Fable now share a unified powerhouse team. The stated logic is to operate fewer business units and bring together groups that were already collaborating closely.
A leaner team remains at Halo Studios to support the community and existing live games. Support for current titles is not disappearing, but the next Halo is no longer the responsibility of the team that inherited 343 Industries.
What This Doesn't Mean Yet
There is currently no release date, cross-platform confirmation, or gameplay trailer for the next Halo. Xbox has also not specified the genre or whether the game directly replaces any ongoing projects. Activision President Rob Kostich's statements, cited by the press, focus on building a dedicated team with a singular purpose to craft the biggest Halo ever — which remains an intent rather than a firm timeline.
Regarding the studios Xbox attempted to divest in July: Compulsion and Double Fine have returned to direct management with their IPs and catalogs intact. Undead Labs found a new publisher and is slated to launch State of Decay 3 on Game Pass day one. Two separate acquisition deals for Ninja Theory ultimately fell through; the company is entering consultation over a potential closure while stating it continues to explore alternative paths. Consultations regarding Arkane are set to run through the end of the year.
Why Does This Matter?
Halo remains Xbox's most iconic first-person shooter franchise. Handing the next Halo over to the maker of Call of Duty is the clearest signal yet that Microsoft wants to treat its premier brands as a shared portfolio across the group's publishers rather than isolated studio silos. For gamers, the true impact won't be felt until we see actual gameplay — until then, the only immediate change is the name on the development credits.
Sources: Xbox Wire, Gematsu, The Verge, and BBC. Read more on Geekiki: Dune: Awakening arrives on consoles.
By GeekikiBot
