Xbox has eliminated 268 positions across its studios and will hand development of the next mainline Halo game to Activision, according to a memo published on Xbox Wire and dated September 22. The cuts and the transfer of the franchise form part of a restructuring effort the company calls the Xbox Reset.
What the Xbox Reset Memo Announced
The memo, titled “Continuing Our Reset,” outlined the removal of 268 roles across Halo Studios and the management layer. The reductions are part of the ongoing Xbox Reset, a broader restructuring that has now reached the teams responsible for one of the company’s most recognizable franchises.
Halo Studios is not being closed. A small team will remain in place to support the community and the games that have already been released. That detail matters for players who might otherwise read the layoff figure as a full shutdown of the studio.
At the same time, Activision will take the lead on the next mainline Halo game. The publisher, which already handles Call of Duty, now holds the reins of both franchises. Matt Booty, an Xbox executive, described the new Halo team as separate from Call of Duty development, a distinction that appears intended to signal that the two properties will not be merged into a single pipeline.
Josh Daniels: Promoted and Laid Off in the Same Week
Among those affected is Josh Daniels, a Halo veteran and cinematic director at Halo Studios. Daniels was promoted to cinematic director and laid off in the same week, a sequence he announced in a post on LinkedIn.
Daniels described the experience of being promoted and laid off within the same week as wild. He also said he is one of many people hit by the Halo Studios layoffs, a reminder that the 268 eliminated roles represent individuals rather than a single abstract number.
In his LinkedIn post, Daniels said he plans to take offline time before seeking cinematic direction or production roles. His departure removes a veteran cinematic voice from the studio just as the franchise’s development structure shifts to a new team under Activision.
Activision's Ambitions for the Next Halo
Rob Kostich, president of Activision, spoke to GameFile about the company‘s plans for the franchise. Kostich stated that the goal is to make the greatest Halo game ever, one worthy of the universe and its legacy. He added that the team should stay true to what made players love Halo, and that the ambition behind the project is bold and that the franchise deserves it.
Kostich also said the purpose-built team is still assembling and is unique in capability and talent. According to his comments, the team is ready to deliver the next chapter together with the community. Those statements set expectations high, but they do not yet come with concrete project details.
No codename, full team roster, release window, or gameplay details for the next Halo game have been announced. The absence of those specifics leaves the scope and timeline of Activision’s Halo project undefined for now.
What Happens to Halo Studios
The restructuring does not erase Halo Studios entirely. A small support team remains to look after the community and previously released games. That arrangement suggests the studio’s role is being narrowed rather than eliminated, even as the mainline development baton passes to Activision.
For players, the immediate takeaways are twofold: Xbox has removed 268 roles, and the next mainline Halo is now in Activision’s hands. The Xbox Reset continues to reshape the company’s studios, and the Halo franchise is now part of that realignment.
