While Halo is one of Microsoft’s most prized IPs, recent layoffs at 343 Industries caused rumors that future games would be made by third-party studios.

Microsoft has confirmed that their internal studio, 343 Industries, will continue to make Halo games. This comes in the wake of rumors stating that the studio, part of Xbox Game Studios, would no longer actively develop titles in the franchise and that third-party companies would handle the series. The news was posted on the official Halo Twitter account.

Microsoft announced about two weeks ago that 10,000 employees within the company would be laid off by March 31, 2023. This follows layoffs across several major tech companies including Alphabet, Meta, and Amazon due to industry conditions. At 343 Industries, apparently over 65 people were let go of, according to former developer Che Chou. Several ex-developers also blamed Microsoft’s leadership and management policies, stating that both Halo Infinite and 343 Industries would be in a better state without them.

The statement from Microsoft seems to aim at soothing Halo fans and other employees at 343 Industries, reiterating that the studio and franchise are both still vital to Microsoft. However, the very fact that this statement proved necessary might reflect how weak 343 Industries position is right now.

Moreover, it doesn't contradict the original rumor that Microsoft might collaborate with other third-party studios on future titles in the Halo series. This also comes in the wake of Microsoft’s attempt to acquire Activision Blizzard and their Call of Duty IP, arguably one of Halo’s biggest competitors.

Halo Infinite's lifespan hasn't been without turmoil, with huge amounts of criticism levied at the game. Most recently, it was reported that the story DLC was scrapped and that the game's engines is switching to Unreal, an engine made by Epic Games. As a result, the future of Halo remains uncertain despite this statement by its publisher.


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