Xbox Game Studios facts for kids
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Formerly
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Division | |
Industry | Video games |
Predecessor | Microsoft Games Group |
Founded | March 2000 |
Headquarters |
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US
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Area served
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Worldwide |
Key people
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Craig Duncan (Head of Xbox Game Studios) |
Products | See List of Xbox Game Studios video games |
Parent | Microsoft (2000–2022) Microsoft Gaming (2022–present) |
Subsidiaries | See § Studios |
Xbox Game Studios is a company that makes and publishes video games. It is based in Redmond, Washington, USA. It started in March 2000 as a part of Microsoft, a very large technology company.
At first, Xbox Game Studios focused on making games for Microsoft Windows computers. Over time, it grew to include games for Xbox consoles, mobile phones, and other gaming platforms. Today, Xbox Game Studios is part of the Microsoft Gaming division, which is led by Phil Spencer. Other big game companies like ZeniMax Media and Activision Blizzard are also part of Microsoft Gaming.
Contents
History
How it Started: Microsoft Games (2000–2011)
In the early 1990s, Microsoft started publishing a few video games. They were known for games like Microsoft Flight Simulator. In 1992, Microsoft decided to focus more on games. They grew their games team and started working with more game developers.
Microsoft bought several game companies in the late 1990s. These included FASA Interactive (known for MechWarrior) and Aces Game Studio (who made Flight Simulator). They also made deals with companies like Ensemble Studios (who created Age of Empires).
Around March 2000, Microsoft created a new, separate division just for games. They called it Microsoft Games. This happened when Microsoft also announced its first Xbox console. Microsoft Games would make and publish games for both Xbox and Windows computers. In 2001, the division changed its name to Microsoft Game Studios (MGS).
One of the most important companies MGS bought was Bungie in June 2000. Bungie was working on a game called Halo: Combat Evolved. After Bungie joined MGS, Halo became a launch game for the Xbox console in 2001. MGS also created Turn 10 Studios in 2001 to make the Forza racing games. In 2002, MGS bought Rare, a famous game company that had made many games for Nintendo.
In 2007, Bungie decided to become an independent company again. However, MGS kept the rights to the Halo games. Bungie continued to make two more Halo games for MGS. At the same time, MGS started a new internal studio called 343 Industries to make future Halo games.
Becoming Microsoft Studios (2011–2019)
By June 2011, Microsoft Game Studios quietly changed its name to Microsoft Studios. They continued to acquire more game developers. In 2011, they bought Twisted Pixel Games. In 2012, they acquired Press Play.
In 2014, Satya Nadella became the new CEO of Microsoft. He wanted to make Microsoft Studios stronger. Phil Spencer became the new head of Microsoft Studios. He started looking for ways to expand the company.
One of the biggest purchases was Mojang in late 2014. Mojang is the company that created Minecraft. Microsoft spent a lot of money to buy Mojang. Even after the purchase, Microsoft promised to keep Minecraft available on many different game systems, including PlayStation. This purchase helped set a pattern for how Microsoft would buy other game studios later. They let Mojang continue to work mostly on its own, without too much interference from Microsoft.
Microsoft Studios also gained the rights to the Gears of War series from Epic Games in 2014. They gave this series to a studio called Black Tusk Studios, which later changed its name to The Coalition.
In 2018, Microsoft Studios announced they had bought several new game companies. These included Ninja Theory, Playground Games, Undead Labs, and Compulsion Games. They also opened a new studio called The Initiative. Later that year, they bought Obsidian Entertainment and inXile Entertainment.
Xbox Game Studios Today (2019–present)
The company changed its name again on February 5, 2019, to Xbox Game Studios. This new name showed that Microsoft wanted the Xbox brand to be known for gaming across all its devices. In 2019, Xbox Game Studios also bought Double Fine and created a new studio called World's Edge to oversee the Age of Empires series.
With so many studios, Xbox Game Studios now has many games. They have allowed some games from their studios, like Cuphead and Ori and the Blind Forest, to be released on Nintendo Switch. This shows they are open to sharing some games on other platforms.
In September 2020, Microsoft announced plans to buy ZeniMax Media for over $7.5 billion. ZeniMax owns many famous game studios, including Bethesda Game Studios (known for The Elder Scrolls and Fallout), Arkane Studios, and id Software. This purchase was completed in March 2021. It brought a huge library of games to Xbox Game Pass. Many future games from these studios will be exclusive to Xbox consoles.
On January 18, 2022, Microsoft announced an even bigger plan: to buy Activision Blizzard for $68.7 billion. This deal was completed on October 13, 2023. This made Microsoft the third-largest gaming company in the world by revenue. With this big purchase, Phil Spencer became the CEO of the new Microsoft Gaming division, and Matt Booty now leads Xbox Game Studios.
In October 2024, Craig Duncan became the new head of Xbox Game Studios. In July 2025, Microsoft Gaming made some changes, which led to some layoffs at studios like Rare and Turn 10 Studios. Some projects, like Everwild and the Perfect Dark reboot, were canceled.
Over 2024 and 2025, many games from Xbox Game Studios started to be released on PlayStation and Nintendo consoles. This shows a new focus on making games available on more platforms, not just Xbox.
Studios
Name | Headquarters | Founded | Acquired | Notable releases |
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The Coalition | Vancouver | 2010 | — | Gears of War series |
Compulsion Games | Montreal | 2009 | 2018 | Contrast, We Happy Few, South of Midnight |
Double Fine | San Francisco | 2000 | 2019 | Psychonauts series, Brütal Legend, Broken Age |
Halo Studios | Redmond, Washington | 2007 | — | Halo series |
inXile Entertainment | Tustin, California | 2002 | 2018 | The Bard's Tale series, Wasteland series, Clockwork Revolution |
Mojang Studios | Stockholm | 2009 | 2014 | Minecraft series |
Ninja Theory | Cambridge | 2000 | 2018 | Kung Fu Chaos, Hellblade series, Bleeding Edge |
Obsidian Entertainment | Irvine, California | 2003 | 2018 | Pillars of Eternity series, The Outer Worlds series, Grounded series, Pentiment |
Playground Games | Leamington Spa | 2010 | 2018 | Forza Horizon series, Fable |
Rare | Twycross | 1985 | 2002 | Battletoads series, Killer Instinct series, Banjo-Kazooie series, Conker series, Perfect Dark series, Viva Piñata series, Sea of Thieves |
Turn 10 Studios | Redmond, Washington | 2001 | — | Forza Motorsport series |
Undead Labs | Seattle | 2009 | 2018 | State of Decay series |
World's Edge | Redmond, Washington | 2019 | — | Age of Empires series |
Xbox Game Studios Publishing | Redmond, Washington | 2000 | — | — |
Former Studios
Some studios that were once part of Xbox Game Studios have either been sold, spun off to become independent, or closed down.
- Sold or became independent
- Bungie — Known for the Halo series — Became independent in 2007.
- Indie Games — Known for the Links series — Sold to Take-Two Interactive in 2004.
- Lift London — No longer part of Microsoft's game business since 2019.
- Twisted Pixel Games — Known for The Gunstringer and 'Splosion Man — Became independent in 2015.
- Closed or joined other teams
- Aces Game Studio — Made the Microsoft Flight Simulator series — Closed.
- Digital Anvil — Known for Brute Force — Its staff joined other teams.
- Ensemble Studios — Created the Age of Empires series — Closed.
- FASA Studio — Known for MechAssault and Shadowrun — Closed.
- The Initiative — Was working on Perfect Dark — Closed.
- Lionhead Studios — Famous for the Fable series — Closed.
- Microsoft Game Studios Japan — Developed games like Blue Dragon — Closed.
- Press Play — Known for Max: The Curse of Brotherhood — Closed.
- Xbox Entertainment Studios — Closed.
Games published
See also
In Spanish: Xbox Game Studios para niños