It is reported that 343 Industries, the studio that develops Halo games, has been significantly downsized, and future games in the series will be outsourced. This was reported by Twisted Voxel.
The host of the BathrobeCast podcast, who has shared true Halo insights in the past, claims that since 2023, the number of employees has dropped from 500 to 280. The reductions were caused by the fact that the studio was increasingly leaning towards outsourcing.
It is reported that some of the studio's tasks have been taken over by members of the Microsoft Xbox Team. Many in the studio are dissatisfied with the fact that the management has not drawn conclusions from the production of Halo Infinite. In addition, contractors who have not become permanent employees are not perceived by the studio as employees.
According to the source, for future projects, 343 Industries will focus on the conceptual and pre-production phases, while other studios under 343's supervision will actually develop the projects.
There are currently two big projects in the works in the Halo world. One of them is likely to be a remake of Halo: Combat Evolved, and the other is Halo 7, both of which are in pre-production, with the most optimistic release date of 2026.
Currently, only 30% of 343 Industries' employees are engaged in game development, and the majority work in management and business positions. Microsoft is now exercising stricter control over the budget, which makes the process of hiring new employees slower and more difficult.