Xbox is making the Halo franchise a problem for someone else.
Today, the company announced a radical restructuring of its studios. The biggest move puts Halo under the control of Activision, the Call of Duty maker. Halo Studios, formerly 343 Industries, will keep a small team to support the player community, with the remaining staffing roles eliminated as part of 268 newly announced layoffs. The move is part of Xbox’s ongoing “reset,” a brutal shake-up that CEO Asha Sharma described in July as a need to stop teams, studios, and functions from working independently.
“For Halo, our goal is clear: make the greatest Halo game ever, worthy of its universe and legacy, while staying true to what made players love it in the first place,” Activision President Rob Kostich said in a statement provided to Kotaku. “It is a bold ambition, one that this franchise deserves. We have already begun assembling a purpose-built team, unique in capability and talent, ready and excited to deliver this next chapter with the community.”
Halo Goes to Activision
The shift is a dramatic one. Halo Studios has been the main developer of the series for years, but Microsoft is now placing the franchise under a different division. Halo Studios will remain as a small team to support the player community, with the remaining staffing roles eliminated.
The change follows Xbox’s July announcement of sweeping layoffs as part of a “reset” for the gaming brand. Sharma said at the time that part of the problem in the gaming unit was “teams, studios, and functions [that] often operate independently, [making it] harder to work toward a shared goal.” Today’s restructuring appears designed to reduce that independence.
The New Studio Map
The restructuring affects more than just Halo. Activision is now taking control of two other venerable studios: Rare and World’s Edge.
Rare is the studio behind Sea of Thieves. World’s Edge is the team that stewards Age of Empires. Both studios were previously part of Xbox’s own portfolio, but now they will fall under the Activision umbrella. The move means three of Xbox’s most important studios — Halo, Rare, and World’s Edge — are now all part of one division.
What the Layoffs Mean
The 268 newly announced layoffs are part of the restructuring. Microsoft said Halo Studios will keep a small team to support the player community, with the remaining staffing roles eliminated.
Kostich’s statement speaks about a “purpose-built team” that is being assembled, but it does not say which staff will move to Activision and which will leave the company entirely. The small team that remains will focus on player community support.
“make the greatest Halo game ever, worthy of its universe and legacy, while staying true to what made players love it in the first place”
Kostich’s statement suggests the new team is already assembled, though he does not specify when the next Halo game will be announced or released. The statement also promises a team that is “ready and excited to deliver this next chapter with the community,” though it is not clear how that team will work or when it will deliver.
Why Activision?
The move puts Halo under the control of a company that Microsoft officially purchased just under three years ago. Activision has long been the maker of Call of Duty, one of the biggest franchises in gaming.
The change means Halo will now sit alongside Call of Duty as part of the same division. That means Microsoft’s two largest game franchises — Call of Duty and Halo — will share the same leadership structure.
The Rare and World’s Edge Shift
The restructuring also affects two other studios. Rare, the studio behind Sea of Thieves, is moving to Activision. So is World’s Edge, the team that stewards Age of Empires. Both were previously part of Xbox’s own portfolio, but now they will fall under the Activision umbrella.
What Players Get
The restructuring is about efficiency for Xbox. The company is trying to stop teams from working independently, and putting Halo, Rare, and World’s Edge under one division is a way to do that.
For players, the immediate effect is the layoffs. The 268 newly announced layoffs will affect staffing across the affected studios. The elimination of remaining Halo Studios staffing roles means Halo Studios will no longer be the main developer of the series. The small team that remains will focus on player community support.
The longer-term question is whether the new structure will produce better games. Kostich’s statement promises a “purpose-built team” that is “ready and excited to deliver this next chapter with the community,” but it is not clear how that team will work or when it will deliver. The statement also notes that the team is already being assembled.
The Road Ahead
The restructuring is a major shift for Xbox. The teams are no longer independent, but they are also smaller, and the next Halo game will now be made by a team that is assembling. Halo’s future is no longer in the hands of the studio that has been the main developer of the series for years — the franchise is now under the control of a different division.
The next chapter of Halo is coming, with a purpose-built team, unique in capability and talent, ready and excited to deliver it.
Source material: “Shuffling the deck chairs: Xbox continues its "reset" with dramatic restructuring,” Ars Technica.
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