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Activision to develop next Halo game as Xbox deepens restructuring

Microsoft's Xbox division has handed development of the next Halo title to Activision as part of a broader operational reset that includes significant workforce reductions. The move marks a strategic shift in how the gaming giant manages its major franchises.

LSN World News · 22 September 2026

Activision to develop next Halo game as Xbox deepens restructuring

Activision will take the helm on the next installment of the Halo franchise, a flagship title for Microsoft's Xbox platform, as the company continues to streamline its gaming operations. The decision represents a notable change in the franchise's development structure and comes amid broader organizational changes within the Xbox division.

The announcement is part of a comprehensive "reset" initiative unveiled by Xbox in July, which encompasses significant restructuring across the company. The overhaul includes planned job losses totaling 3,600 positions, representing one of the gaming industry's largest recent workforce reductions.

Microsoft has positioned the reorganization as part of its long-term strategy to optimize operations and focus resources on priority areas. The shift in Halo's development represents part of this recalibration, with leadership indicating the change will allow the company to pursue its broader strategic objectives more effectively.

The Halo franchise has been central to Xbox's identity since the platform's launch in 2001, making the development transition a significant move for the gaming division. Industry observers are watching closely to assess how the change affects the franchise's direction and Microsoft's competitive position in the gaming market.