Story perspectives

Microsoft Cuts 268 Jobs, Moves Halo Development to Activision

By Drooid · Sep 23, 2026, 10:04 PM UTC · How we work

Summary

Story summary

Xbox's Microsoft division is laying off 268 workers and moving Halo development to Activision.
Xbox Game Studios chief Matt Booty said the cuts put the company three-quarters through a 3,200-job restructuring plan.
Activision president Rob Kostich said the aim is to create the greatest Halo game ever with a purpose-built team.
A small Halo Studios team, now about 20 staff, will continue supporting the community and existing in-market games.

History

Historical Context

Microsoft acquired Bungie in 2000, making Halo a launch title for Xbox. After Bungie regained independence in 2007, Microsoft formed 343 Industries (later Halo Studios) to run the franchise, starting with about a dozen staff. In 2026 the studio was trimmed to a support team and the Halo IP was moved to Activision, illustrating the long-term trend of publishers consolidating flagship series.

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Story summary

Xbox's Microsoft division is laying off 268 workers and moving Halo development to Activision.
Xbox Game Studios chief Matt Booty said the cuts put the company three-quarters through a 3,200-job restructuring plan.
Activision president Rob Kostich said the aim is to create the greatest Halo game ever with a purpose-built team.
A small Halo Studios team, now about 20 staff, will continue supporting the community and existing in-market games.

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