Halo Changes Hands: Activision Will Develop the Next Installment Amid a Wave of Layoffs

For years we've been wondering when Halo's definitive change of course would come, and now it's here. According to Dexerto, Matt Booty, Xbox's Chief Content Officer, has confirmed that the next Halo game will be developed by Activision, through a team created specifically for the project (a “purpose-built team”, in Booty's words) that will operate separately from Call of Duty. The announcement also comes at a particularly sensitive moment: it coincides with another round of layoffs at Xbox.

Why does it matter? Because Halo isn't just any franchise. It's the series that defined Xbox's identity and one of the games that shaped competitive shooters on console. Handing its future over to the home of Call of Duty completely changes the conversation about what kind of game it will be, how it will play and what place it will have in competitive play. And the fact that the news arrives alongside more staff cuts says a lot about where Microsoft's gaming division stands right now.

What you need to know

• Activision will develop the next Halo, as confirmed by Matt Booty, Xbox's Chief Content Officer.
• The project will be handled by a purpose-built team created for the game.
• That team will be independent from Call of Duty, according to the official line.
• The announcement coincides with a new round of layoffs at Xbox.
• The source doesn't provide details on release dates, platforms or what kind of game is in the works.

A change of direction for a legendary series

Halo has gone through several eras and several studios over its history, and every handover has sparked debate in the community. This time the move is even more striking: the franchise is leaving the group of studios that has traditionally managed it within Xbox and entering the orbit of Activision, the publisher with the most experience launching shooters at massive scale and keeping them alive year after year.

The emphasis on the team being separate from Call of Duty is no accident. It's a preemptive response to the fans' most obvious fear: that Halo ends up as CoD with Spartan armor. Microsoft wants to make it clear that this isn't about recycling engines, systems or staff, but about building something with its own identity. Whether Activision's production culture, schedules and success metrics end up seeping into the project in practice is another matter.

The context you can't ignore

The source doesn't give any figures on the layoffs, so we won't speculate on numbers. But the simple fact that people are talking about another round is significant in itself: this isn't an isolated incident, but part of an ongoing trend of restructuring that has been hitting Xbox. Announcing the handover of one of your crown jewels on the same day jobs are being cut sends a message that's hard to spin: Microsoft is reshuffling its priorities and concentrating resources where it believes the returns are highest.

Our take

Here at Underworld Lordz, we have mixed feelings. On one hand, it's hard to deny that Activision knows how to make shooters that work: solid netcode, a steady stream of content, a well-structured competitive ecosystem. If there's one thing Halo has lacked in recent years, it's exactly that: continuity and a clear roadmap for people who take the game seriously. If this new team understands the arena shooter and respects the pacing, time-to-kill and map control that make Halo unique, the series could regain momentum in competitive play.

On the other hand, the risk is obvious. Halo doesn't play like Call of Duty and shouldn't try to look like it. A new team, however dedicated, needs time to understand a franchise with more than two decades of competitive DNA. And we're worried that a project born in the middle of a wave of layoffs will start out under pressure for quick results, aggressive monetization and little patience for listening to the community. As competitive players, we want stability, not yet another reboot.

For content creators, this announcement opens an interesting window: there will be months of speculation, leaks and debate to fuel videos and streams. But we also urge caution. Until there's concrete information about the game, the responsible thing is to analyze, not to hype up empty promises. And above all, let's not forget that behind every round of layoffs there are professionals losing their jobs, something the industry normalizes far too quickly.

What do you think?

Halo is changing hands and the debate is on. Do you trust Activision to bring back the series' competitive spark, or do you think this move is the beginning of the end for the Halo we knew? Drop by the team chat or our Discord and let us know: are you excited or worried about a Halo made by Activision?