Halo series developer 343 Industries has allegedly been downsized considerably, and upcoming Halo projects will largely be outsourced.
Twitter/X user and podcast host BathrobeCast, who has shared information on Halo titles from reliable sources in the past, claims to have spoken to over 12 existing and former 343 Industries employees in order to learn about the current state of the studio and future Halo projects. Based on what they learned, the Halo developer kept losing employees in 2023 and 2024, as the studio leaned more heavily towards outsourcing content. In this period, internal employees were cut down from around 500 to less than 280, while 50 to 60 contractors were also let go of.
The podcast host mentioned that some roles were transferred to Microsoft Xbox Team instead of being internalized at 343 Industries between 2023 to 2024, allowing for a clearer separation of responsibilities for Halo content. The studio increased outsourcing, and many within the development are not pleased to see that leadership has not learned from the production of Halo Infinite. Furthermore, contractors who have not been made permanent staff are not treated like employees by the studio.
According to the source, for upcoming Halo projects, 343 Industries will focus on the concept and pre-production phases, including “Lore checks,” while the actual production will be handled by other studios under 343’s supervision, similar to the arrangement with Creative Assembly for Halo Wars 2. Currently, two major Halo projects are in the works. One is likely a remake of Halo: Combat Evolved and the other is Halo 7, both in the pre-production phase, with the earliest release expected in 2026. One of these projects, likely Halo 7, will feature a much larger multiplayer component, potentially incorporating the “Tatanka” multiplayer project for over 100 players that was originally planned for Halo Infinite.
As of now, only 30% of 343 Industries’ staff is engaged in game development, with the majority working in project management, production, and business roles. Microsoft now exercises stricter budget control, making new hires slower and more challenging. Although Halo Infinite generated substantial revenue, it did not meet the company’s financial targets and is now sustained by external contractual content, with the remaining support focused solely on Forge content.
