Xbox Game Studios, a privately owned company headquartered in the United States, was founded in 2000 and operates with approximately 90 employees. The company specializes in consumer gaming, functioning as an American video game publisher and computer software development company, part of the Microsoft Gaming division. Originally founded as Microsoft Games, it was renamed Microsoft Game Studios from 2001 to 2011, and subsequently Microsoft Studios until 2019. By the end of 2019, the company adopted its current name, Xbox Game Studios, a change prompted by its strategic focus on acquiring more video games rather than studios.
Xbox Game Studios acquired Hideo Kojima's "Physint," an action-espionage game, after PlayStation Studios unexpectedly canceled the collaboration, according to Kojima's public statement on September 11, 2026. Sony Interactive Entertainment, PlayStation’s parent company, walked away from the project in mid-June, despite having introduced "Physint" earlier in 2024 as part of its partnership with Kojima Productions; the move to Xbox Game Studios makes a PC release more likely. Previously, on September 5, Double Fine, which regained its independence from Xbox Game Studios in July, unveiled its first post-Xbox game, "Thank You Bus Driver," with founder Tim Schafer stating the studio will continue making unique games. Earlier, on August 24, Xbox Game Studios and Playground Games redesigned the female protagonist for their upcoming action role-playing game "Fable" ahead of Gamescom 2026. This followed the full divestiture of Compulsion Games from Xbox Game Studios on August 21, meaning its original intellectual property is no longer owned by Microsoft, as the studio was one of the teams affected by CEO Asha Sharma's 'Xbox Reset' and the July layoffs.
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Xbox Game Studios offers products in the media and telecoms services industry. Xbox Game Studios's product portfolio comprises of consumer gaming.
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Xbox Game Studios's revenues were less than $100M in 2024. All the revenue comes from video games.
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