Xbox has reportedly considered bringing Activision and Call of Duty developer Sledgehammer Games into the Halo franchise for a new multiplayer project.
The claim comes from Halo-focused content creator Rebs Gaming, who reports that Microsoft has explored a proposal where Activision would assist with Halo development, potentially putting Sledgehammer Games in charge of a multiplayer-focused Halo title. However, there is currently no confirmation that the project is moving forward.
In brief
- Xbox reportedly explored having Activision assist with future Halo development
- Sledgehammer Games was reportedly considered for a Halo multiplayer project
- A basic prototype was reportedly created before being canceled
- Microsoft and Halo Studios have not officially announced the collaboration
Sledgehammer Games Reportedly Built a Halo Prototype

According to Rebs Gaming’s report, Activision produced a basic prototype based on a Halo multiplayer pitch in June 2026. The prototype reportedly focused on fundamental gameplay elements such as player movement rather than representing a fully developed game.
The prototype was reportedly canceled in July. Importantly, that does not necessarily mean the wider proposal involving Activision has been abandoned. The report claims Microsoft has continued exploring the possibility of Activision helping develop Halo games, although the current status remains unclear.
Sledgehammer Games would certainly bring plenty of multiplayer FPS experience to the table. The Activision studio has worked extensively on Call of Duty, including leading titles such as Call of Duty: Vanguard and Modern Warfare III.
Halo Could Lean More Heavily on Co-Development

The report also claims that Halo Studios intends to rely significantly on outside development partners for future projects.
The game’s official credits contain a substantial number of external development and production partners, including SkyBox Labs, Snowed In Studios, Sperasoft, Sprung Studios and Virtuos, among others.
Rebs Gaming specifically characterizes Campaign Evolved as involving roughly 15 co-development studios, although that figure is the reporter’s classification rather than an official total published by Xbox.
The idea of Sledgehammer making a Halo multiplayer game should be treated strictly as a possibility Xbox has reportedly explored. Neither Microsoft, Activision, nor Sledgehammer Games has publicly announced such a project.
