Perhaps one of the biggest challenges facing Xbox CEO Asha Sharma is what exactly to do with Halo.

Halo used to be synonymous with Xbox. It was to Xbox what Mario is to Nintendo, but after years of painful mismanagement, corporate inertia, and hundreds of millions of dollars ... Halo is arguably at its lowest point ever.

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Halo Campaign Evolved arguably didn't resonate as well as it perhaps should've done. Selling yet another re-master of the original Halo game, albeit this time without even competitive multiplayer, doesn't seem to have been a hugely worthwhile endeavour. You could even argue it did more harm than good to Xbox, given the fact Microsoft released it on PlayStation too, but that's just my opinion.

What is perhaps less of an opinion is that Halo has absolutely mountains of untapped potential. It's a known quantity, the fanbase is clamouring for a new high-quality Halo game, and the transmedia opportunities are painfully clear. It's always been about execution.

Perhaps the answer to getting Halo back towards firing on all cylinders again is looking towards the alumni who made it great in the first place. Co-creators of the original games such as Joseph Staten have been reminiscing about the game lately, with Staten wondering what more Halo ODST-like spin-offs and expansions might look like.

"I often think about what it would have been like if we’d kept building on Halo 3 with ODST-like expansions — new stories, innovative mechanics, etc. Would have been great fun."

There has been a lot of rumors and conjecture about what it's like working at Halo Studios right now, with some arguing that Microsoft and Xbox leadership isn't running it all too well.

Others have suggested Halo's slide is frustrated by its location, or Microsoft's creativity-stifling corporatism. Many others have expressed hopes that maybe some OG Bungie or 343i alumni could return to the franchise, such as Marcus Lehto.

I really enjoyed Halo Wars 2, and Halo Infinite's campaign gameplay was decently fun, but there was always this sense of untapped potential across the franchise. Many of Halo Infinite's story beats connecting it to Halo 5 were shunted into books and out of the game, as 343i repeatedly reworked story beats only to subsequently abandon them and leave them unfinished. And let's not discuss the disastrous Halo TV show on Paramount.

With Gears of War, Fable, and Forza enjoying an incredibly strong showing throughout Gamescom and this year in general — Halo has oddly become the runt of the litter, which is an absolutely wild thing to say.

What would you like to see Asha Sharma do with the Halo franchise? Is it worth saving? Can it be saved? Would you like to see Joseph Staten return to lead? Let me know your thoughts.

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If there are two features I'll turn off in every single video game in which they are present, it would be chromatic aberration and film grain.

I get why it exists, but I wish it didn't because it never gives the look (in my opinion anyway) that you think the developers are aiming for.

So, not being able to turn either off in Halo: Campaign Evolved, a shiny futuristic space epic, seems like a misstep.

On PC there were ways around it, but now that won't be necessary, as the next update will allow both to be disabled. As it should have been from the start.

Such is my dislike for both of these graphical 'features' that I haven't even opened Halo: Campaign Evolved yet. I shouldn't need to use config files to turn off something this basic.

The updates to Sgt. Johnson sound pretty important, too, if progression being blocked has been an issue until now.

There isn't much to go on besides the X post shown above, with the update scheduled for some time next week. Full patch notes will be available at that time, and these are just the "highlights," so there'll be a bunch of lower-level stuff as well, it seems.

Crucially, it looks like you'll need to make sure you're at a save point at the end of a mission before the update drops, or else you'll lose some of your progress. The post specifically only mentions mid-mission save points, so everything else will be fine.

In our full review of Halo: Campaign Evolved, my colleague Brendan Lowry said:

"Campaign Evolved ultimately delivers an incredible reimagining of the original Halo, enhancing it with jaw-dropping audiovisual presentation, carefully considered gameplay and level additions, an enjoyable new three-mission story, and a suite of over three dozen collectible Skulls for tons of replay value."

It's not perfect, sure, and it literally is just the campaign with some new missions added, but overall it's pretty well executed. The next update at least will fix some of the irritations.

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Halo: Campaign Evolved launched just days ago, and it appears Microsoft is moving quickly to make cuts at Halo Studios now that the game is out. A number of developers who were previously employed at Halo Studios have posted on LinkedIn today confirming that some roles have been laid off. (via Insider Gaming)

Halo Studios producer Nick Treitman confirmed that he was impacted by the layoffs, stating that "after 6.5 years working on Halo and dodging just as many rounds of layoffs - it has finally caught up to me. I have nothing but love for Halo and the folks at the studio, this is just a tough reality in the gaming industry right now."

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Paul Morris, listed as Scrum Master at Halo Studios, also confirmed that his role had been impacted by layoffs this week. "Today, I learned my time at Halo Studios will be coming to an end following the successful launch of our latest game, Halo: Campaign Evolved. I know this is one of the most challenging job markets our industry has seen, and I know the road ahead won’t be easy."

A number of other Halo Studio employees have updated their LinkedIn pages confirming that they are now available for work. The layoffs come as new reports claim Halo: Campaign Evolved's development was troubled throughout, taking up more resources than originally planned and causing other projects such as a Halo multiplayer game to be canceled.

Halo Studios had confirmed plans to use Unreal Engine 5 in future Halo titles to help streamline development and make building Halo games faster. But for the Halo remake, it chose to use a modified version of the Halo: Reach engine known as Blam, but with Unreal Engine 5 graphics and assets on top.

Unfortunately for the studio, this led to development being more complex, with third-party studio Abstraction struggling to meet deadlines imposed by Halo Studios and being ultimately kicked off the project, forcing Halo Studios to scrap much of the work done by Abstraction and rebuild assets in the Blam engine instead.

If this story sounds familiar, that's because it closely mirrors the development of Halo: Infinite. That game also suffered from a troubled development cycle, with contractors struggling to meet deadlines and work in the Slipspace Engine (which was just the Blam engine with a new name.)

Now, with layoffs impacting Halo Studios, it's clear that Microsoft is moving forward with its confirmed 3,200 layoffs, 1,600 of which were already made back in July.

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Nobody could've seen this one coming!

Much has been said about Xbox's previous approach to its gaming portfolio. In a sprint to boost margin mandates seeded by Microsoft CFO Amy Hood, Xbox leadership put together a haphazard plan to publish icons like Gears of War, Halo, and Forza onto PlayStation. Forza has been an utterly resounding success, but ... the other two not so much.

It's arguably been particularly damaging with regards to Halo. Halo is to Xbox what Mario is to Nintendo, and for Xbox to put Halo on its arch-rival could be interpreted as a very visible signal that Microsoft isn't in it for the long haul.

Every hardware ecosystem tends to have some form of exclusive content, whether it's creative software on Apple products or native Google services on Android. Microsoft decided it wanted Xbox to be the only closed platform in history without any form of exclusive content. Was the juice worth the squeeze?

Well, the data very much says "not," I think.

According to Circana's Player Engagement Tracker, on July 28th Halo: Campaign Evolved ranked 4th in US DAU on Xbox platforms (8% of total Xbox players on that date launched the game), while placing 14th on Steam (2% of actives) and 29th on PlayStation (1% of actives).

— @matpiscatella.bsky.social (@matpiscatella.bsky.social.bsky.social) 2026-08-01T08:44:24.344Z

Despite some clear sales success, Halo: Campaign Evolved has hardly lit the PlayStation world on fire. Halo: Campaign Evolved defeated some service game staples on Xbox during its launch week, claiming the 4th highest daily active users across Xbox Series X|S consoles. It managed to rank a lowly 14th on Steam, and an even worse 29th on PlayStation, claiming just 1% of PlayStation's install base.

I would argue that the immeasurable brand damage putting Halo on PlayStation has wrought on Xbox is hardly worth this paltry figure. Circana senior director Mat Piscatella noted that the data shows "the massive challenge for new games in an environment dominated by the live service behemoths."

For Xbox, I would argue that Halo Campaign Evolved's performance represents a larger problem.

Halo Campaign Evolved has been generally controversial for its lack of multiplayer, perceived (or unperceived) "liberties" taken with the art direction and detailing, while accentuating a lack of visible roadmap for the future of the franchise. Sources familiar tell us that Halo Studios recently canceled a multiplayer-focused Halo game titled Project "Ekur," formerly "Tatanka," a short while ago, leaving the franchise somewhat adrift.

Microsoft's handling of Halo in general has been legendarily poor. The franchise was formerly a staple of the industry landscape and a cornerstone of Xbox's identity. In 2026, it feels like a shadow of its former glory, with a weak TV adaptation doing its own damage to the brand, and repeated "soft reboots" leaving the central narrative in a confused state.

The PS5 version doing poorly is a reflection on how much lustre Halo has lost in the wider gamer consciousness. Xbox fans have been jumping in for the nostalgia, but the fact nobody else cares is an indictment of how the franchise has been handled in general.

Putting Halo on PlayStation 5 did a ton of brand damage to Xbox in general, and I seriously doubt any future Halo will launch on PS5 given Xbox's shift back towards exclusive games. Gears of War: E-Day will be permanently Xbox exclusive, for example, and the E-Day previews have come in extremely positively recently.

Making Halo exclusive to Xbox again is low-hanging fruit ... delivering a Halo that can reclaim the franchise's lost glory is going to be much, much harder, as faith in Halo Studios seems to be in short supply, to put it politely.

As incoming Xbox CEO Asha Sharma seeks to reset the brand and double down on Microsoft's core IP library ... I think of all Xbox's problems, repairing Halo's prestige is by far the biggest challenge facing Xbox. What do you think?

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