Microsoft is reportedly considering bringing Activision into the development of upcoming games in its popular Halo Franchise. According to a recent report, Xbox’s parent company cancelled an early Halo prototype being developed by Activision in July. However, this does not appear to have completely ruled out the possibility of the two companies working together in the future.
The information comes from a report by well-known Halo insider Rebs Gaming. According to the report, Microsoft may be considering changes to its development strategy for future Halo projects, including giving external studios a larger role in development.
As part of this potential strategy, Activision could also be involved in some upcoming Halo projects.
Activision Reportedly Started Work on a Halo Prototype
The reported Activision-Halo collaboration could potentially involve Sledgehammer Games, a major studio behind the Call of Duty franchise. The studio could reportedly contribute to the development of a future Halo multiplayer project.
According to the source cited in the report, Activision began working on an early prototype for a Halo pitch in June. The project was reportedly still in the initial blockout phase, where developers were testing basic elements such as player movement and other core gameplay mechanics.
Microsoft reportedly cancelled the prototype in early July. However, the decision is not necessarily being viewed as the end of Activision’s potential involvement with the Halo franchise.
According to Rebs Gaming’s source, Microsoft is still considering the possibility of having Activision work on certain Halo projects. However, no such project has reportedly received an official greenlight yet.
Microsoft Could Outsource More Halo Development
The potential Activision collaboration could be part of a broader development strategy at Microsoft. According to the report, the company may rely more heavily on external development studios alongside Halo Studios when working on future Halo games.
Using outside studios is not entirely new for the Halo franchise.
A recent example is Halo: Campaign Evolved, a remake of Halo: Combat Evolved. Several external teams, including Virtuos, Ninja Theory, Turn 10 Studios and Rare, reportedly contributed to different aspects of the game.
According to the report, around 15 development studios are credited on Halo: Campaign Evolved, highlighting the significant role external teams played in the remake.
Project Ekur Also Relied on an External Studio
Another example of external development within the Halo franchise is Project Ekur, a cancelled multiplayer project. The game was initially being developed by Certain Affinity before its development was reportedly taken over by Halo Studios.
Project Ekur was intended to become one of the franchise’s next major multiplayer titles. However, Rebs Gaming claimed last month that Microsoft had cancelled the project.
The cancellation has raised further questions about Microsoft’s plans and strategy for future Halo multiplayer projects.
What Could Be Next for Halo?
Halo Studios, previously known as 343 Industries, is currently working on several projects related to the franchise.
Some reports have suggested that the studio could be in the early stages of developing potential Halo 2 and Halo 3 remakes. However, Microsoft has not officially confirmed either project.
The company has also yet to reveal significant details about the next mainline Halo game.
As a result, it remains unclear how much involvement external studios will have in future Halo projects. Microsoft has not officially announced any partnership between Activision and Halo Studios either.
Halo: Campaign Evolved Released in 2026
Microsoft and Halo Studios launched Halo: Campaign Evolved in 2026. The game is a full remake of the original Halo title and was developed using Unreal Engine 5.
It was released for PC, Xbox Series S/X and PlayStation 5 on July 28, 2026.
Although the reported Activision Halo prototype did not move forward, Microsoft’s growing reliance on external development could create opportunities for collaborations with other major studios in the future.
For now, however, the information surrounding a potential Activision-Halo partnership is based on reports and sources familiar with the matter. Microsoft and Activision have not officially confirmed any such collaboration.