Microsoft has announced that Activision will take over development of the next Halo game whilst Halo Studios undergoes significant layoffs as part of a wider Xbox restructuring. A total of 268 roles are being eliminated across Halo Studios, other first-party studios, and management functions. This forms part of Xbox leadership's "reset" strategy aimed at consolidating studios and strengthening franchises by operating fewer business units and aligning closely-working groups.

The restructuring involves multiple studio consolidations: World's Edge and Rare are moving under the Activision banner alongside a newly-created, separate team dedicated to the new Halo; Bethesda will incorporate Obsidian; King will absorb Microsoft Casual Games; and Playground and Turn 10 will merge to focus on Forza and Fable. A small team will remain at Halo Studios to support the existing community and in-market games. Microsoft has been unable to find a buyer for Ninja Theory, which will likely close, whilst negotiations with Arkane Studios remain ongoing through the end of the year.