Despite Microsoft’s recent mass layoffs, 343 Industries and Halo appear to be surviving. However, the franchise is not operating as usual. According to sources at Bloomberg, 343 is restarting Halo’s development, which has been impacted by the loss of at least 95 jobs, including key directors and contractors. The studio is switching to Epic’s Unreal Engine, following a leadership shakeup and difficulties with their aging in-house platform, Slipspace. The studio is also breaking from its traditional story-driven gameplay.
343 is using Unreal for an unannounced game, nicknamed “Tatanka,” developed with assistance from long-time partner Certain Affinity. Initially created as a battle royale title, it may evolve into other forms. Some at 343 are concerned that Unreal may affect Halo’s playability, as Slipspace’s glitches have hindered multiplayer features in Halo Infinite, including fan favorites like Assault and Extraction.
According to Bloomberg, many of the workers who were laid off were working on game prototypes using Unreal, instead of developing new missions for Halo Infinite. The insiders claim that 343 had been considering changing engines for the past decade, but it wasn’t until the departure of studio lead Bonnie Ross and engine overseer David Berger in late 2022 that the company decided to make the switch. Pierre Hintze, who replaced Ross, is reportedly focusing the company on greenlighting new technology and expanding Halo Infinite.
Microsoft declined to comment. The change in strategy is not unexpected, even without the layoffs. Although Halo Infinite received positive reviews at launch, delayed modes, seasons, and the cancellation of the split-screen mode have damaged its reputation. 343 has also been involved in some of the less successful projects in the Halo series, including the problematic Halo: Master Chief Collection and spin-offs like Halo Wars 2. While a fresh start does not guarantee the revitalization of the sci-fi shooter, it may address ongoing concerns.