Microsoft will not have a Battle Royale game developed unless a first party studio has a really good idea for it.

Microsoft will probably not develop a First-Party Battle Royale Game. Xbox boss Phil Spencer noted in this context that there are already many very good BR games out there, which is why he currently sees no reason to have such a title developed himself. However, it leaves open whether, for example, a Halo 6 could be given such a mode.

Phil Spencer says:

Millions are playing Battle Royale games. I don’t just want to develop a game because others have also developed it. Fortnite is massive, PUBG is huge and new Battle Rye variants are produced by some very good developers. I wouldn’t support it unless we found something special. That’s something else.