Microsoft is going all-in on AI, and this is splashing over to Xbox gaming. New reports say that generative AI plays a heavy hand in the development of new Halo games.

Two new Halo games are on the way: a remake of the original Halo Combat Evolved released in 2001, complete with new modern-day mechanics like sprinting, and a multiplayer-only live game similar to the cancelled Halo Online. These games are coming quick, set to launch in 2026. New reports say that gen AI may have been the secret to this speedy release cadence.
Sources tell Halo insider and YouTuber RebsGaming that Halo Studios has chosen to fully adopt Microsoft's generative AI technology to make the new Halo games.
"Generative AI is apparently woven into every aspect of development, such as enemy AI and terrain generation. I think what they're mostly doing is using AI to make that and then touching up the work with human hands," the source said about the new Halo games.
"Also, developers are expected to meet similar to quicker deadlines and the only means to do so is through the use of AI, whether that's mundane tasks like scheduling things or writing emails, all the way to actual game development."
In the past, it's been confirmed that Xbox lets first-party developers choose if, and how, to utilize AI for their games.
That being said, Microsoft has spent $80 billion on AI, leading to major innovations like the generative AI MUSE, which can render games in real-time without code from developers, as well as partnerships like the one with inWorld, which will be used to create quests and dialog for games.
Halo Studios will reveal at least one of these Halo projects--probably Halo CE Remake--during Halo World Championships stream on Friday, October 24 at 1PM PST, followed by a one-hour project deep dive at 2PM PST.
New Halo Details
- Halo CER built in hybrid engine, combines Unreal Engine 5 with Halo's legacy Blam engine
- Abstraction Games co-developing
- Halo Studios is leading development
- May be campaign only with no multiplayer
- Will have sprint & updated mechanics
- 2 new Halo games: Halo multiplayer and Halo CE Remake
- Live service multiplayer expected to be cross-platform
- Both games coming in 2026




