Microsoft started developing a new Halo game in 2005 to be turned into an MMO, but it was ultimately scrapped, leading to the shutdown of Ensemble Studios.
Nearly two decades later, designer Sandy Petersen disclosed that the project’s fate was not due to challenges or issues with his vision but rather was influenced by Don Mattrick, who held a leadership role at Xbox division from 2007 to 2013.
In 2008, Ensemble Studios started planning a gigantic MMO set in the Halo universe. We code-named it Titan. It was to take place tens of thousands of years ago, before the Halos were set off & destroyed all sentient life in the Galaxy.
I was in charge of the universe-building -… pic.twitter.com/8eaSbEt81X
— Sandy Petersen 🪔 (@SandyofCthulhu) October 28, 2025
Ensemble Studios began developing a massive MMO game set in the Halo universe in 2008, known internally as Titan. The game was intended to be set thousands of years before the Halos were activated, wiping out all sentient life in the galaxy. The focus was on creating the universe for the game.
Petersen revealed that the Halo MMO, internally named Titan, was expected to make $1.1 billion in revenue. However, he requested a budget of $90 million and a development period of at least three and a half years, which was seen as substantial at the time.
Don Mattrick cancelled Halo’s MMO to safeguard his profits.
When Mattrick assumed control of the Xbox division, he quickly discovered that he had a bonus tied to revenue sharing over three years. However, the launch of Halo’s MMO would occur after this period, resulting in investments being considered losses.
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Petersen explained that when Matrick fired all of Ensemble, he avoided paying for their costly studio for three years and showed little concern for Titan. However, Petersen did not offer further evidence to support the accusations against Matrick, whose name does not evoke positive associations for Xbox fans.
The Halo MMO designer mentioned that players could play as both the Forerunners and the Covenant in the game. The Flood would also be featured but not as a playable faction. The game’s storyline would be set thousands of years before the main series, with missions and enemies spread across numerous planets.
The game was never released, but the franchise continued to exist, facing challenges. Don Matrick became known for the controversial Xbox One presentation and later left in 2013 to work at Zynga. He now works at the MdGB Capital investment fund, offering technology companies consulting services.
GameSpot was the origin of the information.
Extremely uncommon
Halo has been around for more than 25 years and has had leaked content, such as a demo for Mac.
