Activision is reportedly rebooting the Halo series from a post-Halo 3 era, with a new purpose-built team at the publisher set to handle development after Halo Studios was gutted in recent layoffs. The shift follows Microsoft's decision to hand the next mainline entry to Activision, separate from Call of Duty operations, as confirmed in an internal memo from Xbox Studios chief Matt Booty eliminating 268 roles across Halo Studios and other teams. Insiders like Rebs Gaming indicate early prototypes from Sledgehammer Games explored a soft reboot avoiding Halo Infinite's story while staying within canon, before pivoting toward a unified mainline release or even a full reboot focused on Master Chief's origins, ditching Unreal Engine 5 and the now-dead Slipstream engine in favor of the Infinity Ward engine.

Halo: Campaign Evolved launched to decent reviews but underwhelming sales expectations for Xbox, netting around $67 million in gross revenue in its first two weeks amid broader franchise struggles. The move comes as Activision president Rob Kostich stated the goal is to make the "greatest Halo game ever," though fan discussions on Reddit highlight skepticism over lore changes and relief that fresh eyes might address years of mismanagement since Bungie. Sledgehammer's involvement in early prototyping of movement mechanics signals a Call of Duty-infused approach, but the project remains in early stages with no official confirmation beyond the studio handover.

Xbox's restructuring has left a small Halo Studios team for community support and in-market titles, while the bulk of new development migrates to Activision's ecosystem. Reports from multiple outlets note the uncertainty, with Rebs Gaming emphasizing that plans could still shift. This latest pivot leaves the franchise's future even murkier after repeated studio overhauls.