Developer Claims Halo MMO Was Cancelled to Give CEO Bonus

Key Takeaways

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  • Microsofts decision to cancel the Halo MMO project and close Ensemble Studios in 2008 was likely influenced by internal politics, according to Sandy Petersen, who worked on the games universe development.
  • The Halo MMO, rumored since 2005, would have been set before the existing Halo games, allowing players to create characters from the Forerunner race or the Covenant alliance.
  • Microsoft invested $90 million in the project and anticipated revenues of around $1.1 billion, indicating a significant commitment to the games development.
  • Don Mattricks tenure as Xbox chief, including his decisions such as heavy Kinect investments and overseeing the Xbox One launch, have rekindled discussions about the factors that led to the cancellation of the Halo MMO and the closure of Ensemble Studios.

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Petersen’s Perspective: Halo MMO Cancellation Amid Microsoft Politics and Kinect Investments

Game designer Sandy Petersen, known for his work on Call of Cthulhu and Age of Empires, has shared his perspective on Microsoft’s 2008 closure of Ensemble Studios. In a recent post, Petersen detailed his work on a Halo MMO, a project that had been rumored since 2005, where he was responsible for developing the game’s universe, including planets and alien species. This Halo MMO would have been set long before the events of the existing Halo games. Players would have been able to create characters from either the ancient Forerunner race or the Covenant alliance. Microsoft invested \$90 million in the project and anticipated revenues of approximately \$1.1 billion. Petersen believes internal politics motivated the game’s cancellation and the studio’s closure. He argues that Microsoft abandoned a potentially successful game despite a massive investment. Don Mattrick’s tenure as Xbox chief, and the decisions made during that time, have brought previous reports attributing the studio’s shutdown to political reasons to light. Mattrick’s decisions, such as heavily investing in Kinect and overseeing the Xbox One launch, which met with criticism, have fueled speculation about the factors behind the cancellation of the Halo MMO and the closure of Ensemble Studios.

In Case You Missed It

Discover an intriguing chapter of gaming history in Bruno Pferd’s latest article, “Xbox Boss Halted Ambitious Halo MMO to Safeguard His Own Bonus” (published November 2nd, 2025). Delve into the untold story of Ensemble Studios’ Titan, a promising Halo-based MMO that was abruptly canceled in 2008. Explore the vast universe that could have been and uncover the surprising reason behind its demise – you won’t want to miss this fascinating journey! Check it out here Xbox Boss Halted Ambitious Halo MMO to Safeguard His Own Bonus.

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