343 Industries began work on Halo Infinite 2 in the Slipspace engine. Development continued until new leadership took over in late 2022 and that new team decided to switch to Unreal Engine 5, forcing the creative team to transition to the new engine."
"Eventually, Microsoft laid off the entire creative team in January 2023 due to cutbacks and the project seemingly failing to move forward. Halo Infinite 2 was being developed alongside Project Tatanka, but both were ultimately cancelled to make way for a "reboot" or "new direction" for the franchise."