Halo Studios Affected By Xbox Cuts As Well

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This week’s extensive job cuts at Xbox impacted Halo Studios, previously known as 343 Industries, a team responsible for several forthcoming Halo games.

Engadget announced that at least five employees were let go, leaving around 200 to 300 people employed at the company. An unidentified developer shared their disappointment with Microsoft Gaming CEO Phil Spencer’s comments about the Xbox business’s well-being and success in the same memo where these significant layoffs were announced.

“I wasn’t sure what part of that I was supposed to be proud about,” this person said.

It appears that Halo Studios has several new Halo games in development, but not all are progressing without issues. According to a developer, “I don’t believe anyone is content with the current product quality. There’s been a great deal of stress and team meetings aimed at encouraging everyone to finish and release the project.

Microsoft recently revealed that they’ll disclose more about Halo’s future in October, arousing curiosity since the underwhelming reception of Halo Infinite. Microsoft has been making significant adjustments within its Halo team lately, such as renaming the company to Halo Studios, appointing new top management, and transitioning development to Unreal Engine 5.

This week’s release of the Xbox lineup affected multiple studios such as Turn 10, Rare, ZeniMax Online Studios, Raven Software, High Moon, Sledgehammer Games, The Initiative, Blizzard, and more. Microsoft also halted the production of their new Perfect Dark game, Everwild from Rare, a new MMO, and other projects.

Microsoft’s decision to reduce staff in the Xbox division was part of a broader reorganization across the company. This move affected less than 4% of their global workforce, which translates to approximately 9,000 employees. Contrary to some rumors, Microsoft Gaming CEO Phil Spencer is not planning to depart from the company.

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2025-07-03 17:09