Xbox Game Studios is a privately owned American video game publisher and computer software development company headquartered in Redmond, Washington, US, and is part of the Microsoft Gaming division. Founded in 2000, it employs approximately 90 individuals and reported $57.5M in revenue as of 2023. Functioning as a tier 2 media tech buyer, the company specializes in consumer gaming. Originally established as Microsoft Games, it underwent name changes to Microsoft Game Studios in 2001, then Microsoft Studios until 2019. The company adopted its current name, Xbox Game Studios, following 2019 as it shifted focus to acquiring more video games rather than studios.
On July 8, 2026, Undead Labs, acquired by Xbox Game Studios in 2018 shortly after the release of *State of Decay 2*, was noted for its eight-year period without new releases, leading to perceptions of mismanagement and that its main contribution to Xbox has been its technology. This followed job cuts on July 7 at Xbox Game Studios that devastated id Software, the legendary studio known for *Doom* and *Quake*, prompting concerns it could become a support studio; Bethesda and Activision/Blizzard also experienced layoffs. Earlier on July 6, reports indicated four Xbox Game Studios were "definitely affected" by changes, with Arkane, a Bethesda studio currently developing *Marvel's Blade*, in discussions regarding its future with Xbox. Separately on July 6, a report from The Game Business claimed that Obsidian Entertainment, a respected RPG developer, had joined a list of Xbox studios reportedly fighting to avoid closure, causing concern among fans.
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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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