The situation at Xbox and Halo Studios has been in the news recently, starting with an announcement that it would be gutting Halo Studios and putting Activision in charge of the next Halo game, with a 'small team' at Halo Studios assisting Activision. It was later revealed that the small team left at Halo Studios was just 20 employees, and that Activision would be rebooting the Halo franchise with little to no semblance of the franchise's original history slated to be in the next game. According to a report by The Verge, the next Halo being developed under Halo Studios was years away from shipping.

Reports from ubiquitous leakers in the Halo scene indicate that several internal projects have been cancelled at the studio, including Halo 2 and three remakes and Halo 7. Despite Halo 7 appearing to be in development, Activision has decided to start from scratch, assembling a specialized team. The earliest a new Halo game is expected is 2030.