Microsoft guts Halo Studios as Activision takes over making the next Halo game

Microsoft guts Halo Studios as Activision takes over making the next Halo game

By Simon Batt
Publication Date: 2026-09-22 16:24:00

Summary

  • Microsoft cuts 268 Xbox roles; says it’s roughly 75% through a painful restructuring.
  • Halo Studios gutted; Activision to make the next Halo while a small Halo team remains for support.
  • Xbox reshuffle: Obsidian keeps Grounded and an upcoming Fallout; King gets Casual Games; Playground+Turn10 on Forza/Fable.

It has been a terrible year for people working in triple-A studios, as industry-wide layoffs have caused thousands to look for new jobs. However, Microsoft doesn’t seem to be done just yet. The company has gutted Halo Studios and handed the next Halo game to Activision, and the worst part is, we’re only 75% of the way done with the…