Halo Moves to Activision: Co-Creator Marcus Lehto Reacts

Microsoft shifts Halo to Activision, closing Halo Studios and sparking a reaction from co-creator Marcus Lehto, who says he's 'shocked but not entirely surprised.'

Did you see this one coming? Microsoft just dropped a bombshell on the Xbox games division, and the Halo franchise is packing its bags for Activision. Yeah, you read that right.

The news came this week as Microsoft announced sweeping changes to its Xbox studios, consolidating various teams under new branches. As part of the shakeup, Halo Studios is closing, and the iconic franchise is moving to an Activision team. It's a massive shift for a series that's been synonymous with Xbox for decades.

Marcus Lehto, one of the original co-creators of Halo, took to social media to share his thoughts. "Shocked but not entirely surprised by the news of the Halo Studios closure and moving the franchise to an Activision team," he wrote. "Wishing the best for all the developers who were affected by this decision. I, as well as you all, am eager to learn more about what's next." It's a measured response from someone who knows the franchise inside and out.

So what does this mean for the future of Halo? Activision has confirmed that its Halo game will be developed by a "new, purpose-built team," separate from the studios churning out annual Call of Duty titles. That's a key detail—it suggests Activision is taking this seriously and not just tacking it onto an existing pipeline.

Meanwhile, Halo Studios isn't completely gone. It will still exist but in a reduced capacity following a fresh wave of layoffs. Going forward, the studio will focus on supporting already-released Halo games and the wider Halo community. It's a bittersweet outcome for the developers who poured their hearts into the series.

This move comes at a tricky time. Halo's 25th anniversary is coming up in 2026, and Xbox CEO Asha Sharma has previously talked about wanting to revive Halo as a tentpole franchise. Lehto himself has spoken about how expensive that resurrection would be. He's also been critical of the Halo: Combat Evolved remake, calling it "too heavy-handed—pandering to a new era of players with 0% attention span." He's suggested that a proper remake would need a radical fresh start, arguing the lore has become "too convoluted." His idea? A "darker" and "more grounded" Halo game, even if it alienates some fans. "PvP would be the brains, PvE the heart and soul. It would not be 'everyone's' Halo," he wrote back in August.

In other Xbox reset news, Playground Games and Turn 10 Studios have merged, things are looking dire for Ninja Theory, and State of Decay 3 developer Undead Labs has found a new publisher—while also being forced to start layoffs. It's a turbulent time for Xbox fans, to say the least.

What do you think about Halo moving to Activision? Are you hopeful for a fresh start, or worried about what this means for the franchise? Let us know in the comments.