The Halo franchise is going through a difficult period. Halo Infinite, released in 2021, failed to meet Microsoft’s expectations, the TV adaptation of the series was unable to secure a strong audience, and the recently released Halo: Campaign Evolved has, according to early estimates, sold just over one million copies. Against this backdrop, Halo Studios, formerly 343 Industries, has also faced layoffs.
Microsoft is now reportedly considering involving Activision Blizzard teams in future Halo games. This was reported by Windows Central editor Jez Corden, and insider RebsGaming claims to have received additional confirmation.
According to him, one of the options includes Sledgehammer Games, known for its work on Call of Duty. The studio allegedly began prototyping a new Halo project in June but quickly abandoned it at an early stage. However, this does not rule out a possible return to the project.
RebsGaming also notes that Halo Studios is heavily relying on outsourcing: at least 15 external studios worked on Halo: Campaign Evolved, including Virtuos, Digic, Keywords Studios, and others. Some of them handled significant portions of development, from visuals to campaign missions.
A similar approach was used in the canceled Project Ekur, which relied even more heavily on external teams. The insider had previously also reported issues with new online projects and the cancellation of remakes of Halo 2 and Halo 3.
While extensive outsourcing is not necessarily a problem, RebsGaming believes the main challenge lies in coordination and quality control. As an example, he points to criticism of the game’s visual direction, which may indicate fragmented work across different teams.
Thus, Microsoft may indeed expand the involvement of external studios in the development of Halo, but no official decisions have been made yet. The role of Activision and Sledgehammer Games remains only one of several possible scenarios.
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