Activision seizes control of Halo for the greatest game
The landscape of game development has just undergone a seismic shift, as Xbox announced a major reorganization of its first-party studio ecosystem, reshaping the future of iconic franchises. This strategic pivot involves significant changes to how beloved titles are managed and developed, creating exciting new partnerships across the industry.
At the heart of the change is the integration of major creative forces. Rare and World’s Edge, long pillars of Xbox Game Studios, will now operate under the umbrella of Activision Blizzard. This means that the publisher will be actively assisting Rare in steering the evolution of titles like Sea of Thieves, while taking stewardship over the Age of Empires franchise moving forward. This move signals a deep commitment to unifying creative talent and expanding franchise potential.
Perhaps the most surprising element of this restructuring is the transition of the Halo franchise. The stewardship of Halo will now fall to Activision Blizzard. This follows years of dedicated work by 343 Industries, the team that has overseen the evolution of the series since Bungie’s independence. Following a strategic rebranding to Halo Studios in 2024, the focus has shifted towards leveraging new technologies, exemplified by titles like Halo: Campaign Evolved and the use of Unreal Engine to push the series into a new chapter.
Activision President Rob Kostich expressed enthusiasm for the change, stating that welcoming Halo, Rare, and World’s Edge to Activision was an honor, underscoring the legacy these teams possess. The goal for the Halo franchise is clearly set: to make the greatest Halo game ever, honoring its legacy while embracing bold new ambitions.
In terms of Halo’s future development, the Halo Studios team is expected to focus their efforts on a single new title—the 2026 remake of Combat Evolved—while operating in a support capacity for the existing franchise. This transition will involve a substantial reduction in headcount, as a new, purpose-built team, separate from the ongoing development of Call of Duty, will now lead Halo‘s future trajectory.
Beyond the major franchise shifts, Xbox has also restructured its portfolio by linking other major development houses. Bethesda will now manage Obsidian Entertainment, meaning the two groups will continue their joint work on new Fallout titles. Furthermore, the development of the Forza series is also set for consolidation, as Playground Games (Forza Horizon) and Turn 10 (Forza Motorsport) will unite into a single studio, aiming to define the future of the Forza and Fable universes.
These large-scale changes are part of a broader effort by Xbox to streamline its content portfolio, encapsulated by the “Xbox Reset” announced earlier this year. This initiative has already resulted in over 1,600 redundancies and the divestiture of assets, including Compulsion Games, Double Fine, and Undead Labs, as the company strives to return to growth and streamline its focus.
The restructuring reflects an ambitious attempt to redefine Xbox‘s content strategy, blending established IP with fresh creative leadership to drive the next generation of gaming experiences.
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