Nobody could've seen this one coming!

Much has been said about Xbox's previous approach to its gaming portfolio. In a sprint to boost margin mandates seeded by Microsoft CFO Amy Hood, Xbox leadership put together a haphazard plan to publish icons like Gears of War, Halo, and Forza onto PlayStation. Forza has been an utterly resounding success, but ... the other two not so much.

It's arguably been particularly damaging with regards to Halo. Halo is to Xbox what Mario is to Nintendo, and for Xbox to put Halo on its arch-rival could be interpreted as a very visible signal that Microsoft isn't in it for the long haul.

Every hardware ecosystem tends to have some form of exclusive content, whether it's creative software on Apple products or native Google services on Android. Microsoft decided it wanted Xbox to be the only closed platform in history without any form of exclusive content. Was the juice worth the squeeze?

Well, the data very much says "not," I think.

According to Circana's Player Engagement Tracker, on July 28th Halo: Campaign Evolved ranked 4th in US DAU on Xbox platforms (8% of total Xbox players on that date launched the game), while placing 14th on Steam (2% of actives) and 29th on PlayStation (1% of actives).

— @matpiscatella.bsky.social (@matpiscatella.bsky.social.bsky.social) 2026-08-01T08:44:24.344Z

Despite some clear sales success, Halo: Campaign Evolved has hardly lit the PlayStation world on fire. Halo: Campaign Evolved defeated some service game staples on Xbox during its launch week, claiming the 4th highest daily active users across Xbox Series X|S consoles. It managed to rank a lowly 14th on Steam, and an even worse 29th on PlayStation, claiming just 1% of PlayStation's install base.

I would argue that the immeasurable brand damage putting Halo on PlayStation has wrought on Xbox is hardly worth this paltry figure. Circana senior director Mat Piscatella noted that the data shows "the massive challenge for new games in an environment dominated by the live service behemoths."

For Xbox, I would argue that Halo Campaign Evolved's performance represents a larger problem.

Halo Campaign Evolved has been generally controversial for its lack of multiplayer, perceived (or unperceived) "liberties" taken with the art direction and detailing, while accentuating a lack of visible roadmap for the future of the franchise. Sources familiar tell us that Halo Studios recently canceled a multiplayer-focused Halo game titled Project "Ekur," formerly "Tatanka," a short while ago, leaving the franchise somewhat adrift.

Microsoft's handling of Halo in general has been legendarily poor. The franchise was formerly a staple of the industry landscape and a cornerstone of Xbox's identity. In 2026, it feels like a shadow of its former glory, with a weak TV adaptation doing its own damage to the brand, and repeated "soft reboots" leaving the central narrative in a confused state.

The PS5 version doing poorly is a reflection on how much lustre Halo has lost in the wider gamer consciousness. Xbox fans have been jumping in for the nostalgia, but the fact nobody else cares is an indictment of how the franchise has been handled in general.

Putting Halo on PlayStation 5 did a ton of brand damage to Xbox in general, and I seriously doubt any future Halo will launch on PS5 given Xbox's shift back towards exclusive games. Gears of War: E-Day will be permanently Xbox exclusive, for example, and the E-Day previews have come in extremely positively recently.

Making Halo exclusive to Xbox again is low-hanging fruit ... delivering a Halo that can reclaim the franchise's lost glory is going to be much, much harder, as faith in Halo Studios seems to be in short supply, to put it politely.

As incoming Xbox CEO Asha Sharma seeks to reset the brand and double down on Microsoft's core IP library ... I think of all Xbox's problems, repairing Halo's prestige is by far the biggest challenge facing Xbox. What do you think?

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Jez Corden is the Executive Editor at Windows Central, focusing primarily on all things Xbox and gaming. Jez is known for breaking exclusive news and analysis as relates to the Microsoft ecosystem — while being powered by tea. Follow on X.com/JezCorden and tune in to the XB2 Podcast, all about, you guessed it, Xbox!