Activision President Rob Kostich has assured Halo fans that the company will build a new team for the franchise rather than handing it to an existing Call of Duty studio.
Microsoft recently announced that Activision would take control of Halo development following another major restructuring of its Xbox division. The announcement immediately raised concerns that studios such as Treyarch, Infinity Ward, or Sledgehammer Games could be pulled away from Call of Duty to develop the next Halo title.
Activision’s President tell staff in a memo they won’t simply put current Call of Duty studios on Halo
“I want to be clear that there’s still a lot to work through on next steps. We’re not going to rush this or simply plug existing teams into these games for the sake of… pic.twitter.com/M8PywznUNK
— CharlieIntel (@charlieINTEL) September 22, 2026
However, Xbox and Activision executives now say that will not happen.
“For Halo, our goal is clear: make the greatest Halo game ever, worthy of its universe and legacy, while staying true to what made players love it in the first place,” Kostich said in a statement obtained by Game File.
Kostich added that Activision has already started assembling a new development group specifically for the franchise.
“It is a bold ambition, one that this franchise deserves,” he continued. “We have already begun assembling a purpose-built team, unique in capability and talent, ready and excited to deliver this next chapter with the community.”
Activision Building a Separate Halo Team
Xbox chief content officer Matt Booty offered an even more explicit assurance in an internal memo announcing the restructuring.
“Activision will also be developing the next Halo title, led by a new, purpose-built team that is separate from ongoing development and plans for Call of Duty,” Booty wrote.
An image from Call of Duty: Modern Warfare 4 (2026) – Activision, Infinity Ward
That distinction means Microsoft is not simply assigning Halo to one of Activision’s established Call of Duty developers. Instead, the company is creating an entirely new team under the Activision organization.
However, Microsoft has not revealed who will lead the group or where its developers will come from. Individual employees with Call of Duty experience could still join the project, even if Activision’s existing studios remain focused on their current work.
Halo Studios, formerly known as 343 Industries, will continue operating with a significantly reduced role. A small group will support Halo Infinite, Halo: Campaign Evolved, and the franchise’s existing community while Activision develops the next major installment.
Halo Enters Another New Era
The move follows extensive layoffs and internal changes throughout Microsoft’s gaming business.
A screenshot of Master Chief via Halo YouTube
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As That Park Place previously reported, Microsoft eliminated 268 positions across Halo Studios, other first-party developers, and Xbox Game Studios’ management and central functions.
Activision is also gaining oversight of Rare and Age of Empires developer World’s Edge. Elsewhere, Playground Games and Turn 10 are being combined into a single studio responsible for Forza and Fable.
Meanwhile, Halo Studios will effectively become a support studio for the series it was once created to lead. The development of the next mainline installment will instead rest with an Activision team that does not yet have a publicly announced name, leader, or roster.
An image from Call of Duty: Modern Warfare – Call of Duty
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The promise of a dedicated team should ease fears that Halo will merely become another product on the annual Call of Duty production line. Nevertheless, Activision still faces the difficult task of assembling that group and proving another organizational overhaul can restore Microsoft’s flagship shooter.
For now, Kostich is setting an exceptionally high bar before Activision has even identified the people expected to clear it.
What do you think of Activision promise to keep Halo and Call of Duty development teams separate? Sound off out and let us know!
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