This Halo project got cancelled in 2013.
Microsoft teamed up with Megabloks for developing a new game for the Xbox 360. It was developed by N-Space until it got shafted and canned altogether. However, thanks to Preserving Gaming History, we can take a look at a twelve-minute video.
Megabloks is familiar to LEGO, so you can kind of guess already what this Unreal Engine 3-utilising game could have been: not a serious, but a cooperative, platformer segment including, sometimes humorous Halo title.
There’s still a chance of a Halo game being developed for a younger audience: 343 Industries (who took over the Halo developer role from Bungie in 2011 when they shifted over to Destiny) studio boss Bonnie Ross previously stated that there are several requests for a „junior” Halo.
As the Microsoft-Megabloks duo is now working on physical Halo toys at the moment, not all hope is lost yet. Andrew Borman, the creator of this video also thinks that N-Space could have been working on a Nintendo DS prototype of Halo as well…
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