Activision to build next Halo title as Xbox moves ahead with wider job cuts

Activision, best known for the Call of Duty franchise, will develop the next Halo game as Xbox advances a corporate "reset" it announced in July, a plan that includes 3,600 planned job losses overall.

Activision — the studio behind the Call of Duty series — has been tapped to develop the next instalment in the Halo franchise, a change revealed as Xbox presses ahead with a restructuring programme first announced in July.

The decision to have Activision lead development on the next Halo game comes amid a broader shake-up at Xbox. The company said the measures announced in July constitute a "reset" of its priorities and operations, and include plans for 3,600 job reductions overall.

Industry analysts say shifting development responsibilities among in-house and affiliated studios has become a common strategy for publishers aiming to streamline production and reduce costs, particularly during periods of organisational change. Bringing a high-profile studio like Activision into a flagship franchise signals a consolidation of resources around fewer, larger teams.

The moves are likely to have immediate workforce implications inside the Xbox ecosystem and among partner studios. Staff reassignment, project reconfiguration and further organisational shifts could follow as the company implements the reset and adjusts development pipelines.

Further details about timelines, which Activision teams will be involved and how the change will affect the franchise's direction have not been published alongside the announcement of the wider job reductions. Observers say more specific information will be important to assess the long-term impact on both the Halo franchise and the studios affected by Xbox's restructuring.