It’s pretty obvious changes are afoot at Halo developer 343 Industries. A number of high-profile names, including Bonnie Ross, Joe Staten, and Kiki Wolfkill have left, and the studio was reportedly “hit hard” in Microsoft’s recent round of layoffs. Xbox leadership have tried to paint a happy face on what’s happening, but it’s clear not all is well at the studio.

　　Well, according to a new report from Bloomberg’s Jason Schreier, 343 Industries is essentially going through an internal reboot at the moment. While Xbox Game Studios boss Matt Booty has reassured 343 employees they will remain in charge of Halo, the studio lost at least 95 employees in the most recent round of Microsoft layoffs. That isn’t quite as dire as it might sound, as 343 had around 750 employees as of 2021, but Schreier reports many of the people who got their pink slips were Halo veterans or those in leadership positions.

　　Perhaps the biggest shakeup occurring at 343 is that the venerable Halo Slipspace Engine is being retired in favor of Epic’s Unreal Engine. Slipspace has long been a sticking point, and per anonymous employees, is currently holding up the addition of classic multiplayer modes like Extraction and Assault.

　　The first project being made with Unreal is the long-rumored major new game mode in development at Halo support studio Certain Affinity. Apparently, this mode began as a more straightforward battle royale, but it may develop into something more unique.

　　Unfortunately, one thing that’s not in development, and apparently never ways according to Schreier, is any additional campaign story content. Instead, the team at 343 has been experimenting with Unreal Engine and working on pitches for new Halo games.

　　Of course, take this all with a grain of salt, but Schreier usually has the goods, and it’s pretty clear something is going on at 343 despite Microsoft’s assurances.

　　Halo Infinite can be played now on PC, Xbox One, and Xbox Series X/S. What are your thoughts on the future of Halo? Is Unreal Engine the right way to go? What would you like to see from future games?