A Look at Xbox’s 25+ Game Studios and Their Plans for 2026

In 2020, we explored the landscape of game studios under Xbox’s umbrella. Fast forward to today, and the scene has dramatically shifted. In 2021, Xbox completed its acquisition of Bethesda and its various studios, followed by the launch of the Xbox Series X and S consoles. By 2023, the company wrapped up its lengthy acquisition of Activision Blizzard. Now, in 2026, Xbox CEO Asha Sharma has announced significant changes, including another round of layoffs. This makes it an ideal moment to revisit the status of Xbox Game Studios, examining every studio they own, have owned, or have let go.

We’ll organize this overview chronologically based on when each studio was acquired or founded, with Activision and Bethesda studios highlighted for easier navigation.

Turn 10, one of Xbox’s longest-standing studios, faced severe layoffs in 2025, which reportedly decimated its workforce. Additionally, a new Forza Motorsport title was canceled, leading Turn 10 to shift into a support role for Playground Games and its Forza Horizon series, which has become a cornerstone franchise for Xbox.

Rare, another veteran studio, is primarily focused on its live-service pirate adventure, Sea of Thieves. In 2025, the studio experienced layoffs and saw the cancellation of the long-anticipated Everwild.

After Bungie departed in 2007 to create Destiny, Xbox established a new studio to continue the Halo legacy. This studio has released several sequels and remasters since then. Following layoffs in 2023 and 2025, it is now finalizing Halo: Campaign Evolved, a remake of the original Halo set to launch in July.

The Coalition, originally founded as Zipline in 2010, was tasked with continuing the Gears of War series after Epic sold it to Xbox. The studio has overseen numerous sequels and remasters and is preparing to release the next mainline Gears title, Gears of War: E-Day, exclusively on Xbox and PC this October.

Recognizing the rising popularity of Minecraft, Xbox made a strategic move 12 years ago by acquiring the studio behind it from creator Markus Persson. This decision allowed the game to remain multiplatform while supporting modding on PC, resulting in one of Microsoft’s most successful franchises, complete with spin-offs and a blockbuster movie featuring Jack Black that performed well at the box office in 2025.

Compulsion Games, one of six studios acquired during Xbox’s pre-pandemic spending spree, reached an agreement in July 2026 to become independent again while retaining its IP. The studio will receive support from Xbox as it seeks new partnerships.

inXile, another acquisition from that shopping spree, is still part of Xbox Game Studios and is currently developing Clockwork Revolution, a first-person action RPG set to launch in 2027 exclusively on Xbox and PC. The studio previously released Wasteland 3 shortly after its acquisition.

Ninja Theory, also acquired in 2018, is transitioning to a new owner as part of the recent shake-up. Known for Hellblade and Senua’s Saga: Hellblade II, the team will finish work on the third installment, simply titled Senua, expected to release in 2027.

Undead Labs, another 2018 acquisition, is also being sold off in 2026. Known for the State of Decay series, the studio is working on State of Decay 3, which was announced in 2020 and may finally launch in 2027.

Obsidian Entertainment, famous for Fallout: New Vegas, has been a powerhouse for Xbox, recently releasing Avowed and Outer Worlds 2 in 2025. The studio remains with Xbox for now, though its future projects beyond updates for Grounded 2 are still under wraps.

Playground Games, the last studio acquired during the 2018 spree, has been developing the Forza Horizon series for nearly 15 years, solidifying its status as a major franchise for Xbox. The studio launched Forza Horizon 6 to critical acclaim earlier this year and plans to reboot the Fable series in February 2027.

The Initiative was created by Xbox to reboot the Perfect Dark franchise, acquired with Rare in 2002. Despite initial excitement over the 2024 gameplay reveal, the studio was closed down last year, along with the project, during a larger round of layoffs.

Double Fine, known for titles like Brutal Legend and Psychonauts, was acquired by Xbox in 2019, likely saving it from closure. Following the release of Psychonauts 2 and other projects, the studio is now going indie again, with support from Xbox, and will retain its IP.

World’s Edge, created by Xbox to oversee the Age of Empires franchise, primarily coordinates and supports third-party studios like Relic, which handle the actual development of new entries.

With the acquisition of Activision Blizzard in 2023, Xbox gained Blizzard Entertainment and its extensive library, including Warcraft, Starcraft, Hearthstone, and Overwatch. This acquisition has been costly, leading to multiple rounds of layoffs across Xbox’s gaming studios. Blizzard remains operational, with its union advocating for layoff protections.

Most of Activision’s teams are currently focused on supporting the Call of Duty franchise. This includes studios like Activision Shanghai, Beenox, Infinity Ward, and Treyarch, among others. The scale of support reflects the franchise’s ongoing demand, with new releases and updates rolling out regularly.

King, the mobile game developer behind the Candy Crush series, is likely the most significant player in terms of monthly engagement at Xbox. CEO Asha Sharma highlighted King in her memo regarding the recent changes, indicating that the studio, currently working on a Minecraft-themed mobile game, may now report directly to Xbox leadership.

Toys for Bob, known for Crash Bandicoot 4 and the Spyro Reignited Trilogy, was initially redirected to support Call of Duty. However, in 2024, the studio successfully negotiated its independence and is now collaborating with Xbox and Activision on a new Spyro game.

When people mention “Bethesda,” they often refer to Bethesda Game Studios (BGS), the team behind Fallout, The Elder Scrolls, and Starfield. Acquired by Xbox in 2021, BGS has since released Starfield and continues to support Fallout 76 while working on future Fallout titles and The Elder Scrolls 6.

Id Software, the studio behind Doom and Quake, has released Doom: The Dark Ages since its acquisition. Its next project is a significant expansion for that game, set to launch in July. Beyond that, details on future projects remain scarce, especially following layoffs during Xbox’s 2026 restructuring.

MachineGames, known for its work on the Wolfenstein series, last released Indiana Jones and the Great Circle in 2024. Reports suggest the team is now developing the third major entry in its rebooted Wolfenstein series.

In July, the studio behind The Elder Scrolls Online faced significant layoffs, with sources indicating that nearly half of its staff could be let go, potentially impacting the future of the MMORPG. Additionally, a new online game from Zenimax was canceled despite positive feedback from then-CEO Phil Spencer.

Roundhouse Studios, formed in 2019 from the remnants of Human Head Studios, has yet to release its own game, primarily assisting with various Bethesda projects. In 2024, the remaining staff was merged into Zenimax to support The Elder Scrolls Online.

Bethesda’s mobile studio, acquired in 2019, released only one game, Mighty Doom, before being shut down in 2024 as part of broader cuts.

Arkane Austin, known for Prey and Redfall, was also affected by Xbox’s layoffs in 2024, with some team members reassigned to other Bethesda studios.

Tango Gameworks, one of the studios shut down during the 2024 layoffs, managed to secure a deal with Krafton, allowing it to continue working on a sequel to Hi-Fi Rush while its previous titles remain available on digital platforms.

Finally, the main Arkane studio, known for Dishonored and Deathloop, is reportedly facing potential closure or sale. Due to French regulations, it may take time before the future of Arkane and its team becomes clear.