After Microsoft reduced Halo Studios to a skeleton crew and handed the franchise over to Activision, new reports based on sources paint a picture of how things unfolded inside the studio. According to information relayed by Tom Warren of The Verge and YouTuber Rebs Gaming, the next mainline Halo game was at least "years" away, and no game was in full production at the time the layoffs hit.
Behind the Curtain at Halo Studios: The Next Main Game Was 'Years' Away, Remakes Reportedly on the Table
After Microsoft downsized Halo Studios and handed the franchise to Activision, source-based reports reveal that the next mainline Halo game was at least years away and that no game was in full production at the time of the layoffs.

The Cuts Came as a Surprise to Employees
According to Warren, the cuts were unexpected for some Halo Studios employees; staff had to wait for hours to find out whether they still had jobs. Warren reports that the first communication came in the form of a public Xbox blog post before notifications were sent out to employees over the course of the morning.
Projects in the Works
According to Rebs Gaming, no game was in full production at the time of the layoffs; however, work was underway on Halo 2 and Halo 3 remakes, Halo 7, and "side campaigns." According to Rebs' source, one of the shorter side games would have been based on the novel First Strike and released between the remakes.

The Studio's Current State
Rebs' source suggests Halo Studios now consists of roughly 30 people, while Warren says the studio will support the existing Halo games Infinite and Campaign Evolved. Meanwhile, Activision is setting up a new studio dedicated to Halo's future.
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