Halo Studios: Microsoft reportedly cancels next Halo game and hands franchise to Activision

According to those sources, Activision is already assembling a new team for the next mainline Halo game. Halo Studios, meanwhile, would continue maintaining existing Halo games with a small team.

The cancelled game was reportedly still years away from release. That means Halo Infinite, which launched in December 2021, remains the latest mainline Halo release.

What happened

IGN says Microsoft has shut down the next Halo game that was in development at Halo Studios. The publication cites reporting from The Verge. In this account, the decision is not an official Microsoft statement, but a reported move that surfaced through multiple sources.

The same report says the franchise was then transferred to Activision. Activision is said to already be putting together a new team for the next mainline Halo game. The sources do not name a title, release date, or specific development studio within Activision. What is clear is that this is a new setup for a core entry in the series.

Halo Studios is said to have been reduced to a skeleton crew that will continue supporting existing Halo games. The cancelled project was also reportedly still years away from release. In that context, the decision is presented as a move against a project that was not close to completion.

Microsoft gained Halo when it acquired Bungie in 2000. For now, this remains reporting rather than a public confirmation from Microsoft itself. That means the exact scope of the cancellation, the status of any other Halo projects, and the practical impact on Halo Studios remain unclear.

Background

Halo Studios is the studio named in the report as the developer of the cancelled game. The sources do not mention a title or release date, only that the project was still years away from launch. That detail matters because it suggests the game was not near the end of development when the decision was made.

The available information also does not say which other Halo projects may have been affected. It is stated, however, that Halo Studios would continue maintaining existing Halo games with a small team. That leaves it unclear whether only the next mainline game was affected or whether other ongoing work within the franchise was also impacted.

Halo’s history at Microsoft dates back to 2000, when Bungie was acquired. Since then, Halo has become one of Xbox’s best-known franchises. Halo Infinite, released in December 2021, is still the latest mainline entry according to the report. That makes the new claim especially notable, since no new mainline game has launched since then.

The report also leaves open how Activision would take over the franchise in practice. It mentions a new team being assembled, but not an official announcement, a studio name, or a production schedule. Until Microsoft or Activision confirms it, the transfer remains a reported development rather than a publicly confirmed fact.