Halo devs are worried about their future. Microsoft reportedly wants to replace them with AI
Amid major layoffs at Microsoft, reports have emerged of a troubling situation at the studio responsible for the Halo series. Its creators worry about being replaced by AI.

The hottest topic in the gaming industry over the last several hours is the mass layoffs at Microsoft. Regarding this matter, there have been reports about the situation at Halo Studios (formerly 343 Industries).
- This team has also been affected by layoffs, but for now, they're not too big - we know about five employees who have been given notice.
- However, the atmosphere in the studio is supposed to be tense. The project that the team is currently working on (which is almost certainly the next installment of the Halo series) is currently going through a major crisis, and no one at 343 Industries is said to be satisfied with the quality of this game.
- The change in Microsoft's development strategy is expected to play a significant role in these issues. From 2023, the company was supposed to start using external teams to speed up the work pace, instead of individual developers hired on contract. This change was meant to make project coordination easier and ensure better quality.
- Currently, Microsoft is doing everything possible to find a way to replace employees with artificial intelligence. This matches with reports from a few months ago when Steve Downes and Jen Taylor (the voice actors for Master Chief and Cortana) mentioned that no one had contacted them about the next Halo game, raising concerns that Microsoft might try to replace them with AI models.
About 9100 people will be laid off at Microsoft, with slightly less than half of them from the Xbox gaming department. Big layoffs have affected studios like Turn 10, Raven Software, Sledgehammer, and High Moon, where developer teams have been significantly reduced. On the other hand, The Initiative was completely shut down.
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