A Halo trailer was supposed to air during the recent PlayStation State of Play event, but Xbox CEO Asha Sharma and her team decided to yank it, according to a report. This potentially damaged the relationship between Xbox and PlayStation, sources told Bloomberg.

The story didn't have any further information about the Halo trailer, but it was likely a video for Halo: Campaign Evolved, which releases this July. Microsoft and Sony subsequently released a trailer for the game featuring footage captured on PlayStation 5 Pro. Fans are theorizing that this was the trailer meant for State of Play, but that is not confirmed.

https://www.youtube.com/watch?v=Wn2m4Xhk2UE

In any event, Campaign Evolved represents the Halo franchise's debut on a PlayStation platform. It may also not be the last, as Microsoft previously said the future of Halo is on PlayStation and that Halo being on PlayStation is good for the brand and players.

Campaign Evolved is still coming to PS5 because Microsoft already committed to releasing it there, and the company has said it will honor existing agreements. However, it remains to be seen if Microsoft will release whatever Halo game comes next on PlayStation, now that Sharma is leading Xbox and has promised at least two "signature" Xbox console exclusives each year.

The Bloomberg report also backed up the claim that a PS5 edition of Gears of War: E-Day was in the works and planned for release until Sharma decided to cancel it. The report added that "many" Xbox employees were surprised.

These details came to light as part of a wider report detailing layoffs at Xbox that are expected to come in July. It's also been reported that Microsoft might close at least one Xbox studio, but it remains to be seen which one.

In a memo to staff, Sharma alluded to forthcoming changes to the Xbox studio system.

"We expanded our studio system when we needed a pipeline of content to meet multiple strategies across subscription, streaming, and devices. In the process, we have found ourselves over extended as we executed on changing strategies in a landscape of more readily available content," she said.

These changes are coming as Sharma takes steps to "reset the business."