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Sledgehammer prototyped Halo multiplayer for Microsoft, then canceled it

Microsoft had Sledgehammer Games build a prototype for a Halo multiplayer game in June, but that prototype was canceled in July after only basic gameplay elements like player movement were tested. Microsoft is still exploring using Activision-era Call of Duty studios on Halo projects but has not greenlit any permanent transfers. The move comes as Halo Studios faces criticism after Halo Infinite and the recent Halo: Campaign Evolved remaster underperformed, and as Halo Studios develops a live-service multiplayer title described as "like Fortnite."

• Sledgehammer Games began work on a Halo multiplayer prototype in June and canceled the effort in July, with testing limited to basic player movement.
• Microsoft continues to consider assigning Activision-owned studios to Halo work but has not approved any official transfers or new leadership changes.
• Halo Studios is working on a live-service multiplayer project intended to operate similarly to Fortnite.
• Halo Infinite drew criticism, and the Halo: Campaign Evolved remaster lacked multiplayer support and experienced a weak initial sales start.