Activision will develop the next Halo in Xbox restructuring

Microsoft confirmed on September 22, 2026 that it is broadly reorganizing its game studios. The most symbolic change puts Activision in charge of the next mainline Halo game, moving a franchise closely associated with Xbox’s internal development teams since its 2001 debut into a different part of the company.

According to a company message signed by Xbox chief content officer Matt Booty, Activision will assemble a team specifically for the project. That group will remain separate from the ongoing operations and plans for Call of Duty. Halo Studios, formerly 343 Industries, is not being shut down: a smaller team will continue supporting the Halo community and games already on the market.

The studio change alters the structure, not just the label

The decision transfers development of the next flagship installment to another Microsoft division. It does not mean, at least based on the announcement, that Halo will become Call of Duty or that the two series will share development teams. The only confirmed detail points in the opposite direction: the new Halo group will be separate from Activision’s work on its military shooter franchise.

There is no title, release window, platform list, or gameplay information for the new Halo. Any conclusion about its format, monetization, or creative direction would therefore be speculation. What is confirmed is that Microsoft is concentrating more editorial and production responsibility inside Activision, which it acquired in 2023, while reducing the size and autonomy of other Xbox structures.

The announcement includes the elimination of 268 roles across Halo Studios, other first-party studios, and Xbox Game Studios management and central functions. Booty said actions taken since July, including studio divestitures, put the company roughly three-quarters of the way through its previously announced restructuring.

Rare, World’s Edge, and Forza are also part of the overhaul

Activision will expand its oversight to include Rare, the developer of Sea of Thieves, and World’s Edge, which manages the Age of Empires franchise. The statement does not say those series are being handed to Call of Duty teams; it describes a change in organizational control.

Elsewhere, Playground Games and Turn 10 will be combined into a single studio focused on Forza and Fable. The wording leaves an important question unanswered: Microsoft did not separately explain the future of Forza Motorsport, even though the broader Forza brand remains within the combined team’s remit.

Bethesda will begin overseeing Obsidian, which will continue current projects including Grounded while collaborating with Bethesda Game Studios on a new Fallout game. King will absorb Microsoft Casual Games, the unit responsible for titles such as Solitaire, Mahjong, and Minesweeper.

The most uncertain situation concerns Ninja Theory. Microsoft said two sale agreements fell through and that it will begin consulting employees about a proposed closure while continuing to explore alternatives. The studio’s shutdown is therefore a proposal, not a completed action. Consultation over Arkane’s future also remains underway through the end of 2026.

From an editorial perspective, the restructuring shows Xbox replacing a network of comparatively autonomous studios with larger groups organized around franchises and publishing expertise. For Halo, the immediate consequence is clear: the next flagship entry will come from a new team under Activision, while Halo Studios moves into a smaller continuity role. The creative effect of that shift cannot be judged until Microsoft reveals the project itself.