Halo shifts to Activision Blizzard King amid expected Xbox cuts

Insiders report the Halo franchise is being moved from Xbox Game Studios to Activision Blizzard King. The claim comes from industry sources, including longtime Xbox leaker Nate the Hate. Microsoft, Xbox and Activision Blizzard King have not confirmed the reports.

If confirmed, Halo would join franchises such as Call of Duty, World of Warcraft and Diablo inside Activision Blizzard King’s portfolio.

Sources indicate an official announcement could arrive as soon as this week, though the companies have not issued statements.

The change is reported as part of broader restructuring at Microsoft’s gaming division following July’s cuts that removed about 3,200 roles and led to four studios leaving Xbox ownership: Compulsion Games, Double Fine Productions, Ninja Theory and Undead Labs. Insiders report a second wave of layoffs is imminent and that teams within Halo Studios are among those affected.

Insiders described two possible development models for Halo under Activision Blizzard King. One model would use multiple internal shooter teams rotating responsibility for campaign, multiplayer and seasonal updates. Another would draw on experience building long-running live-service games, emphasising persistent systems and ongoing content updates.

Reports also note Activision’s shooter studios could be assigned to contribute to Halo under a new structure.

Halo Studios, formerly known as 343 Industries, experienced layoffs earlier this year after the commercial reception of Halo: Campaign Evolved. Sources did not specify whether the studio would be disbanded, integrated with other teams or retained as a distinct development unit if the transfer proceeds.

Observers note Nate the Hate has delivered accurate Xbox-related reporting in the past, and other insiders have reported that Microsoft examined how major franchises are organised as a possible model for Halo. The available information remains unverified pending a corporate announcement, and the companies involved have been contacted for comment.