Halo is an iconic Xbox franchise, but it has struggled to find its footing since Bungie left. 343 Industries failed to live up to the series’ legacy, while Halo Studios continues to raise questions about its future.

According to rumors, one option being considered for the franchise is to hand development to third-party studios, and that is where Activision comes into the picture.

Recent information suggests there have been discussions between Microsoft, Activision, and Sledgehammer Games about developing a new Halo game. What exactly is being considered?

Activision and Sledgehammer could make a Halo game

According to a recent report from Halo enthusiast Rebs Gaming, the future of the franchise may not be handled exclusively by Halo Studios, as a more ambitious plan could involve other development teams.

The report claims that Microsoft has been in discussions with Activision about having one of its studios develop a multiplayer Halo title. The studio reportedly being considered for the project is Sledgehammer Games:

“It all started last month, when video game journalist and expert Jez Corden said he heard a rumor that Microsoft could have Activision develop Halo games. A few weeks later, I spoke with a source who had sent me a ton of information about Campaign Evolved that turned out to be 100% accurate. They told me Microsoft is exploring a proposal for Activision to help develop Halo games, including Sledgehammer Games helping develop a multiplayer game.”

Halo

The collaboration resulted in a prototype, but it was canceled

According to Rebs Gaming’s sources, discussions between Microsoft and Activision over a new Halo project progressed far enough for a prototype to be created for a presentation in June.

Although the project was canceled, the report claims this does not necessarily mean the end of the potential collaboration between the two companies on a new multiplayer Halo game featuring the Master Chief:

“They also said Activision began testing a prototype for a Halo presentation in June. Apparently, it was in an early stage, and only basic gameplay mechanics such as player movement were tested. However, I was told they canceled it in early July. Canceling the prototype doesn’t mean Activision won’t develop Halo games. According to my source, Microsoft is still exploring the proposal, but nothing has been approved yet.”

For now, Microsoft has not officially confirmed the reported collaboration, so it remains unclear whether Activision or Sledgehammer Games will actually work on a Halo project.