Back in 2020, we took a look at all of the various game studios Xbox owned and operated at the time. Since then, a lot has happened. In 2021, Xbox finalized its purchase of Bethesda and its subsidiary studios. It launched the Xbox Series X and S consoles. And then in 2023, it completed its messy, protracted acquisition of Activision Blizzard. Now, in 2026, Xbox CEO Asha Sharma has announced a massive shake-up of the company, complete with yet another massive round of layoffs. So it seems like a perfect time to once again take a look at every studio Xbox owns, owned, closed, or sold, and figure out the current status of Xbox Game Studios.
For this list, we’ll be going in order of when a studio was acquired or founded, but I’ve also separated out Activision and Bethesda studios to make it easier to scroll through.
Turn 10 Studios – Created in 2001
Turn 10 is one of Xbox’s oldest studios that’s still lingering around. However, brutal layoffs in 2025 reportedly gutted the studio. It was also reported that a new Forza Motorsport had been canned. That has led to Turn 10 becoming more of a small support team for Playground Games and its Forza Horizon games, the spin-off series that has now become one of Xbox’s most important franchises.
Rare – Acquired in 2002
Another of Xbox’s oldest studios that are still standing, Rare is mostly focused on its live-service pirate game, Sea of Thieves. In 2025, Xbox laid off staff at the studio and canceled the long-in-development Everwild.
Halo Studios (formerly 343 Industries) – Created in 2007
After Bungie left Xbox in 2007 to develop Destiny, the company created a studio dedicated to making more Halo games. That studio has shipped a few different sequels and remasters since 2007. In 2023 and then 2025, the studio was hit with layoffs. It is now finishing up Halo: Campaign Evolved, a remake of the original Halo that is expected to launch in July.
The Coalition – Created in 2010
The Coalition was founded in 2010 as Zipline, and after going by some other names, it was eventually tasked with the job of continuing the Gears of War series after Epic sold it to Xbox. Similar to Halo Studios, the Coalition has overseen numerous sequels, spin-offs, and remasters since taking over the franchise. It is set to ship the next mainline Gears game, the upcoming prequel Gears of War: E-Day, exclusively on Xbox and PC in October.
Mojang Studios – Acquired in 2014
12 years ago, Xbox realized how popular Minecraft was becoming and made one of its best moves in 20 years: It bought up the studio behind Minecraft from the creator of the game, Markus Persson, and kept the brick-based survival game multiplatform while letting the PC version continue to be modded freely. The result has been one of Microsoft’s biggest franchises, with many spin-off games and a blockbuster movie starring Jack Black released to big box-office success in 2025.
Compulsion Games – Acquired in 2018 – Spun off in 2026
Compulsion Games was one of six different studios Xbox acquired on its now-infamous pre-pandemic spending spree. In July 2026, the studio behind South of Midnight reached a deal with Xbox to split off from the company and go indie again. It will receive some funding and support from Xbox during this transition as it looks for new partners and publishers. The studio will get to keep all of its IP and franchises after it splits.
inXile Entertainment – Acquired in 2018
Another studio gobbled up by Xbox as part of its shopping spree, inXile remains at Xbox Games Studio and is currently working on Clockwork Revolution, a first-person action RPG shooter that is set to launch in 2027 exclusively on Xbox and PC. Previously, the studio shipped Wasteland 3 in 2020 shortly after it was bought by Xbox.
Ninja Theory – Acquired in 2018 – Sold in 2026
This is another studio bought by Xbox during that spree in 2018, and it’s another one that is being cut loose as part of Sharma’s big shake-up. The team behind Hellblade and Senua’s Saga: Hellblade II was able to find a new owner and have signed a contract to begin transitioning away from Xbox. We still don’t know who snagged Ninja Theory, but the team will be able to finish work on the third game in the Hellblade series, simply titled Senua. It plans to launch this upcoming action sequel in 2027.
Undead Labs – Acquired in 2018 – Sold in 2026
Another studio Xbox bought in 2018 that is now being sold off in 2026, Undead Labs, like Ninja Theory, has been shifted to a new, unknown owner. Undead Labs is known for State of Decay, a series of open-world zombie survival games that have sold incredibly well across multiple platforms. The team’s next game is State of Decay 3, which was announced in 2020 and might finally arrive in 2027.
Obsidian Entertainment – Acquired in 2018
Look at this, another studio Xbox bought in 2018. Obsidian Entertainment, maybe most famous for its work on Fallout: New Vegas and which recently released Avowed and Outer Worlds 2 in 2025, has been a secret weapon for Xbox and one of its more productive teams. So it makes sense that the studio is sticking with Xbox for the foreseeable future, though what it does next, beyond more updates for Grounded 2, isn’t clear yet.
Playground Games – Acquired in 2018
This is the last studio on the list to be purchased by Xbox during that 2018 shopping spree. Playground Games has been developing the Forza Horizon series for nearly 15 years now and has turned the open-world spin-off racing games into one of Xbox’s biggest, most popular franchises. It launched Forza Horizon 6 earlier this year to rave reviews. In February 2027, Playground will release a reboot of the Fable series.
The Initiative – Created in 2018 – Closed in 2025
The Initiative was a AAA game studio created by Xbox with the goal of rebooting the Perfect Dark franchise, which it acquired when it bought Rare back in 2002. Despite people seeming really excited about the first gameplay of the Perfect Dark reboot, which we saw in 2024, Xbox closed the studio down and killed the project last year alongside a larger round of Microsoft layoffs and cuts.
Double Fine Productions – Acquired in 2019 – Spun off in 2026
The developers behind beloved games like Brutal Legend, Psychonauts, and Broken Age are going indie again. Double Fine, founded by Tim Schafer over 20 years ago, was purchased by Xbox in 2019 right before covid, a move which likely saved the studio from closure. But now, following the releases of Psychonauts 2, Kiln, and Keeper, Double Fine is going indie again with some support from Xbox during the transition. The studio will get to keep all of its IP and franchises after it splits.
World’s Edge – Created in 2019
This is a studio that, like 343 and The Coalition, was created by Xbox to oversee a franchise. In this case, the RTS series Age of Empires. However, World’s Edge doesn’t actually make new AoE games so much as it helps coordinate, manage, and support third-party studios like Relic who actually do most of the development work on new entries.
Blizzard Entertainment – Acquired in 2023
When Xbox bought Activision Blizzard in 2023, it got its hands on Blizzard Entertainment and its vast library of games like Warcraft, Starcraft, Hearthstone, and Overwatch. It has also proven to be a costly acquisition, and since the deal was finished, Xbox has suffered four major rounds of layoffs across its gaming studios. Blizzard remains today, and its union is fighting hard to ensure layoff protections and benefits.
The CoD Studios
Almost all of Activision’s teams besides a few are currently tasked with supporting the Call of Duty franchise in some capacity. Here’s the full list: Activision Shanghai Studio, Beenox, Demonware, Digital Legends, High Moon Studios, Infinity Ward, Raven Software, Sledgehammer Games, Solid State Studios, and Treyarch. That’s a lot of people, but when you have a franchise as big as Call of Duty and which is still releasing new games every 12 months on top of multiple updates and seasons for existing games and mobile titles, you sort of need all of that manpower to keep the machine running, I guess?
King – Acquired in 2023
Mobile game maker King, the studio behind the massive hit series Candy Crush, is likely the studio bringing in the most players each month at Xbox. That’s probably why Xbox CEO Asha Sharma called out King directly in her memo to staff announcing big changes and layoffs within the Microsoft brand. It sounds like King, which is working on a Minecraft-themed match-three mobile game, is now going to report directly to the Xbox boss. Is this an indication that it no longer resides under Activision?
Toys for Bob – Acquired in 2023 – Spun off in 2024
Crash Bandicoot 4 and Spyro Reignited Trilogy developer Toys for Bob was a popular developer among fans of colorful platformers. But in 2020, the studio was drafted into supporting Call of Duty. However, in 2024 the studio was able to escape Xbox and Activision and cut a deal to go indie. It is now working with Xbox and Activision on developing a new Spyro game.
Bethesda Game Studios – Acquired in 2021
When most people talk about “Bethesda” they’re likely talking about BGS, the team behind Fallout, The Elder Scrolls, and Starfield. Bethesda Game Studios was bought up, alongside the rest of the company, in 2021 by Xbox. Since that deal, BGS has released Starfield and continued to help support Fallout 76 while working on future Fallout games and The Elder Scrolls 6.
Id Software – Acquired in 2021
Id Software, the studio behind Doom and Quake, has shipped Doom: The Dark Ages since being bought by Xbox. Its next project is a large expansion for that game, launching in July. Beyond that, we don’t officially know yet what the team is cooking up next. Id Software and other parts of Bethesda suffered layoffs as part of Xbox’s big 2026 “reset.”
MachineGames – Acquired in 2021
The experts at making games where you kill Nazis, MachineGames’ last released project was the well-reviewed Indiana Jones and the Great Circle in 2024. Before that, the team became famous for its reboot of the Wolfenstein games. Reportedly, the team is now working on the third major entry in its rebooted Wolf3D series, according to sources familiar with the situation who spoke to Kotaku earlier this year.
Zenimax Online – Acquired in 2021
On July 6, the studio behind The Elder Scrolls Online was reportedly hit hard by layoffs. Sources told Kotaku that nearly half the staff at the studio could be let go, which would have a profound impact on the future of its successful MMORPG, The Elder Scrolls Online. In July 2025, during Xbox’s last round of layoffs, Zenimax’s next big online game, described by some as “Blade Runner meets Destiny 2,” was canceled by Xbox despite then-CEO Phil Spencer telling the team he thought it seemed cool.
Roundhouse Studios – Acquired in 2021 – Closed/merged with Zenimax Online in 2024
Roundhouse Studios was formed in 2019 from the ashes of Human Head Studios (the team that worked on the 2006 Prey and the first version of Prey 2) and started work on various Bethesda projects. However, the studio never shipped its own game, only helping on the development of Redfall among some other unconfirmed Bethesda titles. In 2024, the remaining staff was merged into Zenimax to assist on ESO.
Alpha Dog – Acquired in 2021 – Closed in 2024
Bethesda bought this mobile studio in 2019, and it only shipped one game, Mighty Doom, before it was shut down in 2024 as part of a larger round of cuts at Xbox and Bethesda.
Arkane Austin – Acquired in 2021 – Closed in 2024
Arkane Austin, the studio behind Prey (the quasi-reboot released in 2017) and Redfall, was one of many studios that were impacted by Xbox’s massive layoffs in 2024. Some members of the team were moved to other studios across Bethesda.
Tango Gameworks – Acquired in 2021 – Closed and then bought by Krafton in 2024
Tango Gameworks was one of a few studios shut down by Bethesda and Microsoft during its bloody massacre in 2024. However, unlike Arkane Austin and others, Tango Gameworks was able to escape the void and was bought by Krafton. The publisher plans to let Tango work on a sequel to Hi-Fi Rush while the studio’s past games, like The Evil Within, will remain on digital storefronts.
Arkane – Acquired in 2021 – TBD
Last, but not least, is the main Arkane studio, the team behind Dishonored and Deathloop and the upcoming Marvel game Blade. Xbox is reportedly looking to possibly sell or shut down Arkane. However, due to French laws, it could take months before we know what the future of Arkane is and what happens to the team.
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