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TechnologyThe Verge · July 23, 2026

The new Halo remake is a reminder of what Xbox used to be

The new Halo remake is a reminder of what Xbox used to be

What's happening

Microsoft has released a new Halo remake, but the game serves as a stark reminder of Xbox's fallen status in the gaming industry. The launch arrives amid a period of significant turbulence for the company's gaming division, marked by layoffs and studio closures.

Who's involved

Microsoft, the tech giant behind Xbox, is the primary company involved. The gaming division has been led through a period of strategic missteps and organizational upheaval that has weakened its competitive position.

Why it matters

Halo was once the flagship franchise that defined Xbox's identity and drove console sales, but its struggles now reflect broader problems within Microsoft's gaming strategy. The disconnect between releasing a marquee title while dismantling the studios and teams that built Xbox's legacy signals deeper structural issues that could affect future competitiveness against Sony and Nintendo.

More context

Xbox has historically relied on Halo as its primary system-seller since the original console's 2001 launch. Recent years have seen Microsoft's gaming division plagued by mismanaged acquisitions, canceled projects, and a lack of clear strategic direction. The company has undergone extensive layoffs affecting thousands of employees across multiple studios, including some of its major acquisitions. These problems stem from years of questionable decisions that have left Xbox without a robust pipeline of exclusive titles to compete in the current console generation.

Read full story on The Verge