No official statement from Microsoft yet, but the team working on the Halo spinoff game came forward with cancellation.
One of the best multiplayer shooters since the early 2000s, Halo, still has a thriving community and a player base. Things have changed since then, sure, but the core gameplay of Halo still stands and it is now widely available on the PC platform for everyone to play. That being said, Halo can be modded in a way that would allow custom multiplayer content very easily, thanks to its creative community and flexible tools.
When the battle royal genre was popular in the late 2010s, everyone wanted to jump on the bandwagon, and only selected amounts of games came on top. Apparently, Microsoft also wanted to jump in and get Certain Affinity, the series co-creator, to work on it. The project started around 2019-2020, and some can consider it already too late for a battle royale game to be relevant due to Fortnite and PUBG already dominating the market.
It has been four years since the work began on Halo’s battle royale game spinoff game, and as expected, it was forgotten with time. Until Certain Affinity spoke about in a recent podcast. The reason was not broadly given out as to why it was canceled, but Certain Affinity did mention that they are getting close to the co-creator, 343 Industries, to make better projects a reality instead.
Microsoft, the series owner, hasn’t made an official announcement yet about the battle royale spinoff game. Our guess can be as good as yours, but if there has to be a simple reason, it is most likely the passing interest on battle royales altogether. Plus, the player base of Halo would rather spend their time on silly capture-the-flag matches rather than teaming up for a serious, ranked match. In some terms, cancellation of the battle royale might be just the right move to make.