According to a rumor shared by YouTuber RebsGaming, Halo Infinite 2 was in development at 343 Industries before Microsoft decided to drastically change the franchise's plans. The YouTuber's anonymous source says that right after the release of Halo Infinite (December 2021), 343's campaign team began working on the sequel in the Slipspace Engine. The team reportedly had 'high hopes' for the gameplay improvements that could have been introduced in Halo Infinite 2.
However, plans changed completely when there was a leadership change inside 343 Industries in September 2022. with Bonnie Ross being replaced by Pierre Hintze. The new leadership decided to switch to Unreal Engine for future Halo games and canceled the Halo Infinite 2 project. The team was asked to start learning Unreal Engine 5, which lasted until early 2023 when Microsoft's big round of layoffs hit 343 Industries hard. RebsGaming's source was also affected, so they do not know if the team is still working on a direct sequel to Infinite or not. The game was fairly well received upon launch; it got an 8 out of 10 score on Wccftech from Chris Wray:
Halo Infinite is, in my opinion, the best game of the series. While still faltering in the narrative, character development, and exposition, it improves earlier titles. Combat is entertaining and engaging, with improvements made across the board, but mention must go to new abilities like the grappling hook. The move to an open world helps the game stand apart, with added freedom to take the fight to your enemies and a vast arsenal of weapons and vehicles to bring into battle. While it slips up on a few occasions, from somebody who has never been part of the Halo fan club, this has given me a glimpse of what could be great things to come.
Still, it's official now: Microsoft has rebranded 343 Industries to Halo Studios, and the team has multiple games in development with Unreal Engine 5. In the
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