Activision Takes Over Halo Franchise Amid Major Restructuring
- Activision will develop the next Halo game while Xbox Studios lays off 268 roles.
- Concerns arise that the new title may reboot established lore from the franchise.
- Speculation surrounds the status of Halo Fest Seattle, set for December.
In a surprising shift for the gaming industry, Activision is set to develop the next installment of the Halo franchise, a move that has left fans questioning its implications for the beloved series. This news comes on the heels of significant layoffs at Halo Studios, which have prompted concerns about the future of both the game and its lore. Is this year’s Halo Fest still viable given the restructuring?
Matt Booty, chief of Xbox Studios, stated, “We are eliminating 268 roles across Halo Studios, other first-party studios, and the XGS management and central functions layer.” He added that a new, dedicated team at Activision will lead development of the next Halo title, distinct from the ongoing work on Call of Duty. Halo Studios will retain a small team tasked with supporting the existing Halo community and games.
This summer, Xbox’s broader restructuring resulted in the layoff of 1,600 employees, with plans for an additional 1,600 job cuts by year’s end. As part of these changes, several studios have been restructured, placing Halo under Activision’s oversight, similar to the integration of Obsidian into Bethesda.
The transition has sparked mixed reactions from fans, particularly regarding the potential for a narrative reboot. Skepticism is fueled by fears that established lore developed over 25 years could be disregarded, akin to Disney’s approach to the Star Wars franchise. Many fans have expressed their concerns online about losing the depth of the Halo universe.
Honestly that’s my biggest fear. I fear that they’ll just do a general reset on Halo’s established lore.
If that happens, I’m out https://t.co/SkpENQih3u
— Nakai Targaryen (Covie Canon/ACOIAF) (@NakaiCanon) September 22, 2026
Some gamers hold opposing views, advocating for a reboot that omits the lore introduced by 343 Industries, arguing that past narratives have diminished the franchise’s potential. One user stated, “Frankly I’m out if they DON’T do a semi-reboot and axe ALL of 343’s lore.”
Another issue looming is the status of Halo Fest Seattle, an event planned to commemorate the series’ 25th anniversary in December. Following the layoffs, speculation abounds regarding the possibility of the event proceeding. An inquiry has been placed with Xbox for clarification on the event’s future.
In a statement to Kotaku, Activision president Rob Kostich emphasized the company’s aim to “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.” However, Kostich’s assurances remain vague, suggesting that discussions about the game’s lore may still be in early stages. He also noted that there remains unexplored narrative potential within the franchise’s extensive literary adaptations.
News Courtesy of Eurogamer
