Halo 7 set for shake-up as series shifts away from Xbox Game Studios

Xbox is reportedly planning another major shake-up which could see studios and franchises shifted around within the organisation, as well as hundreds of employees being laid off.

As reported by The Information, Xbox is allegedly planning a second round of layoffs for this week that could see up to 1,600 employees let go from Microsoft.

This news comes following 1,600 jobs which were cut back in June after Xbox CEO Asha Sharma told staff she would be eliminating a further 1,600 roles by the end of the year.

Bloomberg journalist Jason Schreier claims that Blizzard Entertainment will be affected by this, while industry insider NateTheHate has also weighed in on the topic, claiming that certain studios will be consolidated, and certain franchises will move around within the business.

One example he gives is claiming that Halo will move under Activision Blizzard, putting it right alongside Call of Duty as part of the company’s portfolio of games. Other studios may also be affected by this.

“It's consolidation in the form of reorganisation -- like Halo will be under ABK, for example,” he writes on ResetEra.

This rumour was previously reported on by Jez Corden on the Xbox Two podcast, who had also heard that Halo would allegedly be moving under Activision Blizzard.

NateTheHate adds that “more than just Halo will be moving under ABK,” and that “other studios will move to different companies within Xbox/MS.”

NateTheHate clarifies that he doesn’t know what will happen to Halo Studios, whether it’ll also be consolidated into Activision, the staff moved into other areas of Microsoft, or if it’ll be closed entirely.

If true, this shake-up will likely lead to more job losses as studios eliminate redundant positions as a result of the consolidation.

Halo 7 development could potentially be reset following this shake-up

As for the next Halo game, it’s also likely this move will disrupt plans for the next major Halo game currently in development.

A previous leak suggested that Microsoft would focus on remakes of Halo 2 and Halo 3 as campaign experiences, similar to Halo: Campaign Evolved that came out in July this year. Meanwhile, Halo 7 would serve as a multiplayer-only experience to be played alongside these campaigns.

However, it seems these plans may change under Activision Blizzard, which changed creative and business strategies as a result of Halo: Campaign Evolved and Halo Infinite’s sales.

Halo: Campaign Evolved is estimated to have sold around 1.2 million copies since July, with 42% being sold on Xbox, 41% on PlayStation 5, and 17% on Steam.

For now, take all of this with a pinch of salt. Halo 7 has not been officially confirmed by Microsoft yet, though we do know that Sharma is prioritising franchises such as Halo, Forza, and Gears of War for its core studios, along with The Elder Scrolls and Fallout also being fast-tracked under Bethesda.