Activision Will Develop the Next Halo Game

Activision will develop the next Halo game as Microsoft reorganizes its Xbox studios.

Activision is taking on the next Halo

Microsoft confirmed today (September 22, 2026) that Activision will be developing the next Halo title.

A new team is being built specifically for the project, separate from Activision’s ongoing Call of Duty development.

The change is part of Microsoft’s wider Xbox reset. Activision is also expanding its role to include World’s Edge and Rare, the studios connected to Age of Empires and Sea of Thieves.

Halo Studios will still support Halo

Halo Studios is not disappearing. Microsoft says a smaller team will continue supporting the Halo community and Halo games that are already available.

The move changes the development setup Microsoft outlined in 2024, when 343 Industries became Halo Studios and Microsoft said multiple Halo projects were being developed with Unreal Engine 5.

Microsoft has not announced the next Activision-developed Halo game’s name, release date, platforms, or whether it will continue using Unreal Engine 5.

The Activision Halo move follows earlier rumors

Talk of Activision working on Halo started before Microsoft’s announcement. In August, reports said Microsoft was considering Activision for future Halo development, with Sledgehammer Games connected to an early multiplayer proposal.

Microsoft’s September announcement turns the larger idea into a confirmed plan, although it does not name which Activision studio or developers will make up the new Halo team.

Xbox’s studio shakeup goes beyond Halo though…

The Halo change is one part of a larger reorganization. Microsoft previously announced plans to cut about 3,200 roles during its 2027 fiscal year as part of what Xbox CEO Asha Sharma called the most significant restructure in Xbox history.

Microsoft says another 268 roles are being eliminated across Halo Studios, other first-party studios, and Xbox Game Studios management during the latest phase. The company is also consolidating other teams as it reduces the number of separate business units.

For Halo, the next major step seems clear: The new Activision team will build the franchise’s next game while Halo Studios continues supporting existing releases and the community.

Credit: IGN, Xbox Wire, Gadgets 360