Microsoft Studio Behind Halo Faces a Reboot on Years of Turmoil

Microsoft Corp. says it’s going to keep making new games in the popular Halo franchise at its prized 343 Industries studio — despite rumors to the contrary. But after a leadership overhaul, mass layoffs and a host of big changes, the outfit is all but starting from scratch.

The Redmond, Washington-based 343 Industries released its latest game, Halo Infinite, in December 2021 to widespread critical acclaim. It was seen as a redemption story for a title that suffered multiple delays, endless development problems and a merry-go-round of creative leads. But in the months that followed, fans turned against the game, complaining about a thin road map and the slow rollout of features that had been expected on day one. At the same time, 343 was seemingly losing staff by the week and went through a major leadership change last fall that led some employees to brace for a reorganization.

The ax fell in mid-January when Microsoft announced mass layoffs and 343 Industries was hit hard. While Microsoft declined to provide specific figures, at least 95 people at the company have lost their jobs, according to a spreadsheet of affected employees reviewed by Bloomberg. The list named dozens of veterans including top directors and contractors, upon which the studio heavily relies. Those temporary employees were given just a few days’ warning before their contracts came to an end, according to people familiar with the process, asking not to be identified because they weren’t authorized to speak publicly.