Halo Studios

Halo Studios, previously known as 343 Industries, operates out of Redmond, Washington, serving as a division within Xbox Game Studios. Microsoft founded the entity in 2007 to manage the Halo franchise following Bungie's separation from the company. The studio name references 343 Guilty Spark, a key artificial intelligence character within the game series. For nearly twenty years, this team served as the primary developer for the mainline entries, delivering titles such as Halo: Combat Evolved Anniversary, Halo 4, Halo 5: Guardians, and Halo Infinite.

The organization underwent a dramatic transformation in September 2026 when Microsoft announced a major restructuring of its gaming divisions. This decision resulted in the cancellation of an upcoming project that was reportedly years away from completion and the transfer of future development rights for the core Halo series to Activision Blizzard. A wave of layoffs reduced the workforce from hundreds to approximately 20 or 30 employees, effectively shrinking the studio into a support unit focused on live service maintenance for existing games like Halo Campaign Evolved.

Despite the operational downsizing, the brand maintains its headquarters in Redmond and continues to engage with the community through programs like the Halo Insider initiative. Former executives and staff have publicly criticized the reduction in staff, noting the loss of experienced talent who were instrumental in shaping the franchise's narrative direction over the last decade. [edit]