Halo Studios Abandons Proprietary Engine for Unreal Engine 5

Microsoft's 343 Industries, now rebranded as Halo Studios, will build all future Halo projects on Unreal Engine 5 instead of its custom Slipspace Engine. The shift redirects engineering effort from engine maintenance toward gameplay and content creation, while expanding the talent pool beyond proprietary technology specialists. The move reflects a broader industry trend: maintaining custom engines increasingly costs more than it delivers.