Activision Reportedly Planning Major Halo Reboot Led By Sledgehammer Games

Microsoft’s decision to hand the stewardship of its flagship sci-fi franchise over to Activision is already yielding explosive development rumors. According to prominent Xbox and Halo insider Rebs Gaming, Activision is actively planning a soft reboot of the series. The project, which is reportedly in early development, will look to chart a new course for the franchise, potentially bypassing the narrative threads left behind by Halo Infinite.

Initially, Activision’s strategy was split, with the publisher proposing two distinct releases: a free-to-play multiplayer experience and a standalone, narrative-driven campaign exploring the origins of Master Chief. However, internal discussions have reportedly shifted toward combining these elements into a single, cohesive package—retaining the classic Halo format that fans have expected for over two decades.

Sledgehammer Games and the Call of Duty Engine

The development is reportedly being spearheaded by a newly established team within Sledgehammer Games, the studio best known for its work on the Call of Duty series. The team has already conceptualized and prototyped basic movement and gameplay mechanics. Crucially, these prototypes are running on the Infinity Ward (IW) engine, the highly polished proprietary technology that powers modern Call of Duty titles.

This technological pivot represents a massive departure for the franchise. It signals that Activision is moving away from Unreal Engine 5—which was recently utilized for Halo: Campaign Evolved—and confirms that Halo Studios’ expensive, proprietary Slipstream engine is completely dead. While the IW engine promises high-end visual features like path tracing and ray tracing, its adaptation for Halo’s sandbox physics will be a major test for Sledgehammer.

While Activision has officially confirmed that it is developing the next Halo, these reboot details remain highly speculative. The franchise is currently in a state of major transition; despite Halo: Campaign Evolved generating $67 million in gross revenue within its first two weeks, it reportedly fell short of Xbox’s lofty sales expectations. Amid ongoing restructuring and layoffs at the recently renamed Halo Studios, Activision’s high-stakes gamble could be exactly what the legendary shooter needs to reclaim its throne.

Source: Original Coverage