Xbox’s expansive network of first-party studios is currently navigating a period of significant evolution, marked by strategic acquisitions, ambitious game development, and recent industry shifts. Under new leadership and with a clearer move towards multiplatform publishing, each studio contributes uniquely to the Xbox ecosystem. This comprehensive overview explores the current status, key projects, and future trajectories of every major developer within Microsoft Gaming, highlighting their diverse portfolios and ongoing contributions to the gaming landscape.
Playground Games
Playground Games is set for a landmark year, with two highly anticipated releases. The studio’s renowned open-world racing series continues with Forza Horizon 6, which is slated to immerse players in the much-requested setting of Japan. Launching first on Xbox Series X/S and PC in May, a PlayStation 5 version will follow, promising another visually stunning and expansive automotive adventure. Beyond the racing circuit, Playground is also spearheading the reboot of the beloved fantasy RPG franchise, Fable. While a definitive release date remains undisclosed, the team is targeting a late 2026 launch. Recent previews have showcased their ambitious vision for Albion, blending classic fairy tale charm with modern RPG mechanics. Fable is expected to arrive simultaneously on Xbox Series X/S, PC, and PS5, positioning it as a major multiplatform title for the year.
Bethesda Game Studios
Bethesda Game Studios is primarily focused on the development of The Elder Scrolls 6, the next mainline entry in their iconic fantasy RPG series. First announced in 2018, the studio had previously indicated that full production on this title would only commence after the release of Starfield. With Starfield having launched in 2023 and its “Shattered Space” expansion delivered in 2024, Bethesda is now fully committed to The Elder Scrolls 6. In early 2024, to mark the series’ 30th anniversary, the studio confirmed the game was in active development, with early builds already functioning. Director Todd Howard recently confirmed that the majority of the studio is dedicated to the game, promising a return to the series’ “classic style,” though he cautioned that its release is still considerably distant.
Obsidian Entertainment
Obsidian Entertainment experienced a productive 2025, launching a trio of notable games. Their RPG lineup included the well-received Avowed and the sequel, The Outer Worlds 2. Additionally, the studio advanced its survival title with Grounded 2 entering early access. While efforts continue on the full release of Grounded 2, the studio’s future beyond that project is less clear. Reports indicate that The Outer Worlds 2 did not meet sales expectations, leading Obsidian to state there are no current plans for a third installment in that particular franchise. After a prolific period of multiple significant releases, the teams at Obsidian are likely in a phase of evaluation, charting new creative courses for their next ventures, potentially exploring diverse genres as per their established reputation.
Halo Studios
Halo Studios, previously known as 343 Industries, is currently engaged in the development of several new projects within the revered Halo universe. The most concrete known undertaking is Halo: Campaign Evolved, a complete remake of the original Master Chief adventure. This project is solely focused on revitalizing the single-player narrative from Bungie’s seminal 2001 title. A key highlight of this remake is its impressive visual overhaul, powered by Unreal Engine 5. Notably, this will also mark the first instance of a Halo game being playable on a PlayStation console. While an exact launch date remains unconfirmed, fans can anticipate Master Chief’s modernized return to Xbox Series X/S, PC, and PS5 in late 2026, offering a fresh take on the series’ beginnings.
The Coalition
The Coalition, Xbox’s dedicated developer for the Gears of War franchise, consistently demonstrates a high level of activity. In August 2025, they released Gears of War: Reloaded, a stunning 4K remaster of the original game, available on Xbox Series X/S, PC, and for the first time, PlayStation 5. This project served as a precursor to their next major title, Gears of War: E-Day. This upcoming mainline installment is a prequel, set 14 years before the events of the original game. It will feature the return of iconic characters Marcus Fenix and Dom Santiago, as it delves into the full narrative surrounding Emergence Day—the pivotal moment when the monstrous Locust Horde first erupted from underground to devastate the planet Sera. Gears of War: E-Day is currently slated for release sometime in 2026, promising a deep dive into the series’ origins.
Blizzard Entertainment
Blizzard Entertainment is primarily concentrating its development efforts on its three flagship franchises: Diablo 4, Overwatch, and World of Warcraft. Following the cancellation of an unannounced fantasy survival project in 2024, the studio has streamlined its focus to enhancing these established universes. Overwatch underwent a significant rebrand in early 2026, dropping the “2” and ushering in a new era with renewed emphasis on narrative, fresh heroes, and refined menu systems, contributing to a resurgence in player engagement. Diablo 4 continues its seasonal updates and major expansions; “Vessel of Hatred” launched in October 2024, introducing a new jungle region and the Spiritborn class, while “Lord of Hatred” in April 2026 promises two more classes, including the highly requested Paladin. For World of Warcraft, the “Midnight” expansion is due in March 2026, featuring three raids and eight new dungeons in Quel’Thalas. Additionally, World of Warcraft Classic will see “Mists of Pandaria Classic” in Spring 2026, ensuring support for older game versions.
Arkane Studios
Arkane Studios, celebrated for its immersive simulation titles like Dishonored and Deathloop, has experienced significant changes. Following the subdued reception of their co-op shooter Redfall, Xbox decided to close Arkane’s Austin, Texas branch in May 2024. However, Arkane Lyon, based in France, remains active and is currently developing its next major game, Marvel’s Blade. Announced at the 2023 Game Awards, this action-adventure title stars the iconic vampire hunter in a quest to safeguard Paris from an escalating vampire threat. Significantly, Blade will feature a third-person perspective, marking a departure from Arkane’s traditional first-person design. Deathloop director Dinga Bakaba is co-directing the project alongside art director Sebastien Mitton, with the game reportedly entering full production by the end of 2025.
Id Software
Id Software, renowned for its mastery of the first-person shooter genre, released Doom: The Dark Ages in May 2025. This prequel to 2016’s Doom plunges players into a heavy metal, dark fantasy world. The studio intentionally adopted a slower, more “tanky” approach to combat for the Doom Slayer, trading some speed for increased brute force. In exchange, players gain access to powerful new armaments, including a throwable flail and shield akin to Captain America’s, alongside the satisfying, bone-crushing Pulverizer, which ingeniously utilizes enemy bones as ammunition. The game received critical acclaim, with iGV awarding it a 9, praising its fresh interpretation of the legendary shooter while maintaining its energetic and exhilarating core. Given its recent launch and positive reception, Id Software’s next project is currently unannounced.
MachineGames
Swedish developer MachineGames, known for its stellar reboot of Wolfenstein, recently embarked on a new adventure with Indiana Jones and the Great Circle. This acclaimed title, released in 2025, sends players on a globe-trotting journey with the famous archaeologist. Critics lauded its innovative blend of first and third-person gameplay, Troy Baker’s exceptional voice performance closely mirroring Harrison Ford, and its remarkable success in capturing the essence of the better Indiana Jones films. The studio expanded the experience with its first story DLC, “The Order of Giants,” which arrived in September 2025. Looking ahead, reports from January 2026 suggest that Wolfenstein 3 is in development. This potential third installment would continue the narrative of B.J. Blazkowicz, aiming to build upon the core series after the cooperative spin-off, Wolfenstein: Young Blood.
Infinity Ward
Infinity Ward is a key studio within Activision’s continuous Call of Duty development cycle, which guarantees an annual release for the franchise. The studio typically rotates lead development duties with Treyarch, Raven Software, and Sledgehammer Games. Infinity Ward’s most recent lead project was 2022’s Call of Duty: Modern Warfare 2. Since then, they have provided essential support to other studios, assisting Sledgehammer Games with 2023’s Modern Warfare 3 and Treyarch with 2025’s Call of Duty: Black Ops 6. Considering that Treyarch and Raven Software jointly led 2025’s Call of Duty: Black Ops 7, marking their second consecutive lead role, it is highly probable that Infinity Ward will step forward to lead the development for the upcoming 2026 Call of Duty title, maintaining the established rotation of the franchise.
Treyarch
Treyarch, one of Activision’s most experienced and longest-serving developers, co-developed 2025’s Call of Duty: Black Ops 7. With a history in the Call of Duty franchise dating back to 2005, Treyarch is widely recognized for establishing the highly popular Black Ops sub-series. They are also the principal architects behind Call of Duty’s acclaimed Zombies mode, having contributed to its development in titles such as 2021’s Vanguard, 2023’s Modern Warfare 3, and both Black Ops 6 and 7. Having recently completed work on Black Ops 7, it is customary for Treyarch to take a significant break from lead development. Therefore, players should anticipate a period of at least a couple of years before seeing their next major independent Call of Duty installment, as the development cycle rotates to other internal teams.
Raven Software
Raven Software operates as an integral component of Activision’s dedicated Call of Duty development ecosystem, recently serving as a co-developer for 2025’s Call of Duty: Black Ops 7 alongside Treyarch. This collaboration builds upon a shared history, notably their partnership on 2020’s Black Ops: Cold War and 2024’s Call of Duty: Black Ops 6, where Raven typically handled campaign duties while Treyarch focused on multiplayer. While Black Ops 6’s campaign garnered high praise (iGV rated it 9/10), Black Ops 7 unfortunately couldn’t maintain that momentum, receiving a 6/10. Sequential releases from the same studios have, at times, led to diminishing returns for the Call of Duty franchise, raising questions about how quickly Raven will be tasked with a lead development role again following the reception of Black Ops 7.
Sledgehammer Games
California-based Sledgehammer Games is another Call of Duty studio operating under the Activision umbrella. The studio previously held lead development roles for titles such as 2023’s Call of Duty: Modern Warfare 3 and its predecessor, Call of Duty: Vanguard. While they provided support as an assist studio for 2024’s Call of Duty: Black Ops 6, the studio faced significant challenges in 2024. Reports indicated that Sledgehammer Games experienced a substantial reduction in its workforce, with an estimated 30% of its staff being laid off. This considerable personnel reduction casts uncertainty over the studio’s capacity to lead future Call of Duty projects independently. The long-term implications of these layoffs on Sledgehammer Games’ development capabilities and its role within the annual Call of Duty release schedule remain to be fully determined.
Compulsion Games
Compulsion Games, the Canadian studio responsible for 2018’s We Happy Few, launched its newest title, South of Midnight, in April 2025. This action-adventure game transports players into a uniquely fantastical interpretation of the American Deep South. The narrative follows Hazel Flood, a young mystic on a journey to master her abilities as a Weaver, a figure capable of mending broken spirits. Her quest involves encountering a diverse array of mythical creatures and adversaries rooted in rich Southern Gothic folklore. South of Midnight was well-received, with iGV’s review awarding it an 8, describing it as a “straightforward but well-executed action-adventure game” offering a satisfying blend of combat and platforming. The game is slated for release on Nintendo Switch 2 and PlayStation 5, but Compulsion Games has yet to announce its next project.
Double Fine Productions
Double Fine Productions, known for its highly creative and often whimsical games, has maintained a busy schedule since the critically acclaimed Psychonauts 2 in 2021. Late in 2025, the studio released Keeper, an imaginative puzzle adventure game featuring a sentient, walking lighthouse as its protagonist. Demonstrating their continued flair for exploring diverse genres, Double Fine also unveiled their upcoming project, Kiln, at the Xbox Developer Direct in January 2026. Kiln is described as a pottery-based multiplayer brawler, showcasing the studio’s commitment to delivering unexpected and innovative gameplay experiences. Under the creative direction of Tim Schafer, Double Fine consistently defies expectations, and fans eagerly anticipate whatever unique concept the studio will unveil next, solidifying their reputation for charming and original titles.
Ninja Theory
UK-based Ninja Theory released Senua’s Saga: Hellblade 2 in May 2024, the highly anticipated sequel to their critically acclaimed 2017 title. With Senua’s intense psychological journey seemingly concluded, the studio’s future projects garnered considerable speculation. Initially, it was widely believed that Ninja Theory would shift its focus to Project: Mara, a horror game first teased in 2020, set within a single, hyper-realistic apartment. However, Project: Mara has since been officially cancelled. Instead, reports now indicate that a new Hellblade game is in the works, described as being “more of a game” than its predecessors. This suggests a potential evolution in gameplay mechanics while aiming to retain the series’ signature atmospheric depth and unique narrative approach. Fans can likely anticipate further details on this new Hellblade iteration in the coming years.
Rare
Rare, a storied British developer celebrated for classics like Goldeneye 007 and Banjo-Kazooie, faced significant challenges, including being deeply impacted by Microsoft’s company-wide layoffs in 2025. For the better part of the past decade, Rare has primarily focused on providing consistent updates for its popular online pirate adventure, Sea of Thieves. The studio had also been developing Everwild, a third-person fantasy adventure announced in 2019, which reportedly underwent a complete reboot in 2021 due to development difficulties. Tragically, following the 2025 layoffs, Xbox internally confirmed the cancellation of Everwild. Furthermore, long-time Rare director Gregg Mayles, who had been involved with Everwild after its reboot, resigned from the studio. While Sea of Thieves is expected to continue receiving support, the precise direction and next major project for this venerable studio currently remain uncertain.
Inxile Entertainment
Inxile Entertainment, known for its expertise in crafting deep role-playing games, is preparing to launch its first title since being acquired by Xbox in 2018: Clockwork Revolution. This upcoming first-person RPG is set in a vibrant yet gritty steampunk rendition of the 19th century, where society grapples with escalating crime and power struggles between various factions. Players will assume control of a character gifted with the ability to manipulate time, a crucial skill amidst the city’s turmoil. Announced in 2023, Inxile touts Clockwork Revolution as its most ambitious project to date, both in terms of scale and budget. Recent gameplay trailers showcase a rich RPG experience with branching dialogue choices, extensive character customization, and diverse weapon modifications, promising a deep and engaging world, though a definitive release window has yet to be revealed.
Mojang Studios
Mojang Studios, the Swedish creator of the global phenomenon Minecraft, continues to deliver regular content updates for its immensely popular crafting and exploration game. Recent collaborations have brought major franchises like SpongeBob SquarePants, Stranger Things, and Bluey into its blocky world. Beyond game updates, Mojang also played a pivotal role in the production of the live-action Minecraft Movie, which premiered in 2025. Starring Jack Black and Jason Momoa, the film achieved remarkable commercial success, becoming the fifth-highest-grossing film of 2025 and securing its place as the second-highest-grossing video game film of all time, surpassed only by 2023’s The Super Mario Bros. Movie. This dual focus on continuous game development and successful media expansion underscores Mojang’s strategic importance within the Xbox ecosystem.
Undead Labs
Seattle-based Undead Labs has been diligently working on State of Decay 3, the next installment in its popular zombie survival simulation series, first announced in 2020. However, the game’s development has reportedly faced considerable internal hurdles, contributing to its slow progress. These challenges include the departure of studio founder Jeff Strain in 2021 to establish a new venture. Furthermore, a 2022 investigation by Kotaku brought to light allegations of a toxic work environment within the studio, prompting an internal review by Microsoft and resulting in the exit of the studio’s HR head, Anne Schlosser. These organizational issues are widely believed to have impacted the game’s production timeline. Consequently, despite being announced years ago, State of Decay 3 still lacks an official release window, indicating ongoing development.
ZeniMax Online Studios
Maryland-based ZeniMax Online Studios has consistently supported The Elder Scrolls Online since its 2014 launch, transforming the MMORPG into one of the world’s largest online games through continuous updates. However, the studio was impacted by the 2025 Microsoft layoffs. Veteran studio head Matt Firor stepped down, and an unannounced project codenamed Project Blackbird was canceled. Project Blackbird was described as a new sci-fi MMO, reportedly impressing Xbox executives with its concept of warring gangster factions on an alien world with extreme environmental contrasts. Despite its promising premise and the studio reportedly scaling up for full production, Xbox canceled the game, leading to Firor’s resignation. This decision highlights a difficult period for the studio, with its focus now firmly on maintaining and expanding The Elder Scrolls Online.
Turn 10 Studios
Turn 10 Studios, traditionally the developers behind Xbox’s flagship racing simulation series, Forza Motorsport, has reportedly undergone significant restructuring following the 2025 Microsoft layoffs. According to industry reports, Turn 10 saw nearly half of its staff depart, leading to the effective “shuttering” of the studio in its previous form. Subsequent reports suggest that direct support for the Forza Motorsport series itself will cease. Instead, the remaining Turn 10 personnel are understood to be transitioning into an assist role, providing support for the ongoing development of the more arcade-oriented spin-off series, Forza Horizon. This shift marks a notable change in strategy for Xbox’s racing portfolio, potentially consolidating resources behind the Horizon brand and leaving the future of core Motorsport titles uncertain.
World’s Edge
World’s Edge was established by Xbox Game Studios in 2019 with a specific mission: to nurture and expand the venerable Age of Empires real-time strategy franchise. Since its inception, the studio has delivered a series of successful remasters, beginning with Age of Empires 2: Definitive Edition in 2019. Their most recent effort in this area was Age of Mythology: Retold, a remaster of the original Age of Mythology, which explores ancient civilizations and their mythologies, released in September 2024. Beyond remasters, World’s Edge also launched a new mainline entry, Age of Empires 4, in 2021, which received positive critical reception. The studio continues to release expansion packs for existing titles, but it remains unclear whether their next major undertaking will be another historical remaster or an entirely new project within the Age of Empires universe.
King
Sweden-based mobile game developer King remains a powerhouse in the mobile gaming sector, primarily driven by the enduring success of Candy Crush, one of the most popular mobile games globally. While King has occasionally diversified its portfolio with other mobile titles, such as 2021’s Crash Bandicoot: On the Run and 2020’s Knighthood, its core focus remains on the Candy Crush franchise. The studio consistently releases new iterations, with Candy Crush Solitaire arriving in 2025. Despite the remarkable commercial performance of its flagship series, King was not immune to the broader industry changes, as the studio was also affected by the 2025 Microsoft layoffs, resulting in a 10% reduction of its total workforce. This illustrates that even highly successful segments of Microsoft Gaming are undergoing strategic adjustments.
The current landscape of Xbox’s first-party developers reflects a dynamic period of significant transition and strategic realignment. While many studios are forging ahead with highly anticipated multiplatform releases and innovative new projects, others have unfortunately faced challenging layoffs and project cancellations. This diverse and evolving environment underscores Xbox’s shifting publishing model, which seeks to balance the legacy of long-standing franchises with the pursuit of new creative ventures, all while navigating a complex industry under new leadership. The future promises a blend of established favorites and exciting new directions across a broad spectrum of gaming experiences.
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