Halo Studios hit with layoffs despite Campaign Evolved's launch success

Xbox has cut staff at Halo Studios despite Halo: Campaign Evolved pulling strong player numbers since its July release, according to Polygon. The layoffs hit less than six weeks after launch — a timeline that mirrors cuts at other Xbox studios following successful releases.

Microsoft hasn't disclosed how many developers were affected or which teams took the hit. Campaign Evolved marked Halo Studios' first major project under the studio's rebrand from 343 Industries and its shift to Unreal Engine 5. The game's performance benchmarks have been solid — mid-tier rigs hitting 1440p 60fps without major optimization issues, a notable improvement over Infinite's launch state.

This follows the same playbook Microsoft ran after Hi-Fi Rush and Redfall: ship the game, wait for the initial wave to settle, then cut headcount. The pattern suggests Xbox views single-player campaigns as finite projects rather than live-service investments, even when they land well.

If you're playing Campaign Evolved and want to squeeze more frames out of your setup, run a fresh optimization playbook — the UE5 build has a few settings that tank performance for minimal visual gain.