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Xbox Game Studios (previously known as Microsoft Games Group, Microsoft Studios, Microsoft Game Studios, and Microsoft Games) is a video game publisher and division of Microsoft based in Redmond, Washington. Established on March 21, 2000; it was spun out from an internal games group, for the development and publishing of video games for Microsoft Windows. It has since expanded to include games and other interactive entertainment for the Xbox platforms, Windows Mobile and other mobile platforms, and web-based portals.

History[]

As Microsoft Games and Microsoft Game Studios (2000-2011)[]

Microsoft had its own Games Group in the late 1990s and had already made some acquisitions for developers and titles. Among them included the acquisition of FASA Studio for its MechWarrior game series and Access Software for its Links series of golf games in 1999, and Aces Game Studio, which worked on the Microsoft Flight Simulator games.

On March 21, 2000; Microsoft transitioned Microsoft Games Group into its own separate division named "Microsoft Games", along with the consolidation of games-related projects within Microsoft. This came alongside the public announcement of the first Xbox console, with Microsoft Games to serve as a developer and publisher of titles for both Xbox and Microsoft Windows. Microsoft Games was then once again renamed to Microsoft Game Studios (MGS) in 2001.

One of the first major studio acquisitions following the division's formation was that of Bungie in June 2000, in the midst of its development of Halo: Combat Evolved. With this acquisition, Halo had essentially become a launch title for the Xbox on its release in 2001, instead of its planned release for personal computers. In September 2002, MGS acquired Rare, who had previously extensively developed for Nintendo platforms.

Around 2004, MGS established Carbonated Games as an internal studio for the development of casual games for the MSN Games web games portal, on the MSN Messenger chat client, and on the Xbox Live platform.

In 2007, MGS announced that a European office would be opening in Reading, England. Bungie split from MGS to become a privately held independent company, with MGS retaining the rights to the Halo property; 343 Industries would later be founded as an internal studio to develop future Halo games without Bungie.

As Microsoft Studios (2011-2019)[]

By E3 2011 in June 2011, MGS was renamed to Microsoft Studios. Later that same year, Microsoft Studios acquired Twisted Pixel Games. In early December 2011, Microsoft Studios created Microsoft Casual Games, a division with the goal of revamping its past casual games for Windows, such as Microsoft Solitaire and MSN Games using more up-to-date software delivery platforms.

In 2012, Microsoft Studios announced a new development studio in London, England.

Early 2014 saw additional intellectual property acquisitions by Microsoft Studios, including a publishing contract with Undead Labs for their game State of Decay, the rights to the Gears of War series from Epic Games, and the Rise of properties (Rise of Nations and Rise of Legends) from Big Huge Games.

The most significant acquisition made by Microsoft Studios was for Swedish video game developer Mojang, creators of the Minecraft sandbox game, in late 2014 – they were acquired for US$2.5 billion and the deal was completed in November.

As Xbox Game Studios (since 2019)[]

The studio rebranded itself on February 5, 2019 as Xbox Game Studios, as to reflect Microsoft's intent to use the Xbox brand to support gaming across all the devices it supports.[1][2] At E3 2019, Xbox Game Studios announced it had acquired Double Fine,[3] and established a new internal studio dedicated to Age of Empires headed by Shannon Loftis, bringing their total studio count to fifteen.[4] This studio, later named World's Edge,[5] does not directly develop any games, but oversees efforts from external studios, such as Relic Entertainment, Forgotten Empires and Tantalus Media, to assure the series is being developed in the right direction, according to creative director Adam Isgreen.[6]

Booty has stated that with studios like Obsidian, Ninja Theory, and Double Fine, which have traditionally supported multiplatform games, they will determine if it makes sense for their future products to be treated as Microsoft-exclusive content for Xbox and Windows computers, or to allow these to be published across multiple platforms. That decision will be based on a "network effect", whether having these games on other platforms will better support the franchise and thus worthwhile for Microsoft to help dedicate resources towards it, such as they had with Minecraft.[7] Xbox Game Studios has allowed some of the content developed by its studios or that was previously published exclusively for the Xbox and Windows systems to be released on Nintendo systems, notably the Nintendo Switch versions of Cuphead from Studio MDHR and Ori and the Blind Forest from Moon Studios, and allowing for the titular characters from Rare's Banjo-Kazooie into Super Smash Bros. Ultimate. However, the division stated that these releases were generally "existing commitments to other platforms" that they allowed studios to honor, but they otherwise have "no plans to further expand our exclusive first party games to other consoles."[8]

Near the end of 2019, with the combined fifteen studios now under Xbox Game Studios, Booty stated that they now had more games than ever to handle, and were likely not going to acquire any additional studios in the near future, stating "we've been shifting our focus inside Xbox Game Studios from acquisition and growth, to a phase of execution and delivery".[9] Additionally, as Microsoft started promotion of its fourth-generation of Xbox, including the Xbox Series X, Booty stated that titles developed by Xbox Game Studios in year or two following its release will not be exclusively for the new generation of consoles, but instead will support both Xbox One and the new console, with some games receiving enhanced performance when played on the new console lineup.[10] Booty said that with the large number of studios they had recently acquired, as well as ongoing external partnerships and their Xbox Game Pass service, the Studios are able to support a "breadth of offerings in the portfolio" designed to attract a large number of players.[11] Further, in an interview in November 2020, Phil Spencer said during an interview regarding the future of the Xbox brand that he intends to put more focus on outputting RPGs, which had to that point been underserved.[12]

Microsoft and ZeniMax Media announced on September 21, 2020 that Microsoft planned to acquire ZeniMax and its family of studios, which include Bethesda Game Studios, Arkane Studios, id Software, MachineGames, Tango Gameworks, and ZeniMax Online Studios, for over US$7.5 billion in cash.[13][14] According to Spencer, the ZeniMax acquisition was intended to give Microsoft a large library of games known around the world, and to expand the library of Xbox Game Pass and XCloud.[15] Both U.S. and European Union regulatory agencies approved the acquisition by early March 2021,[16] and the acquisition was formally completed by March 9, 2021.[17] The total price of the deal was $8.1 billion[18] Bethesda Softworks, the primarily publisher for all of ZeniMax's games, remained as an operational unit under Microsoft with the acquisition and retained all its current leadership.[19] With the acquisition, future games from the studios will be exclusive to Xbox consoles, but existing commitments to other platforms (such as Arkane Studios' Deathloop and Tango Gameworks' Ghostwire: Tokyo, which are contractually exclusive to PlayStation 5) will still be honored.[20] Spencer stated that Game Pass was also fundamental driver for the acquisition.[21] A preliminary injunction to block the acquisition had been sought in an ongoing class-action lawsuit that ZeniMax faced over Fallout 4, with the plaintiffs in the case arguing that Microsoft could shield ZeniMax's assets from damages should they be found liable after the acquisition.[22] The ZeniMax Board of Directors was dissolved following the Microsoft purchase.[23]

On January 18, 2022, Microsoft announced its intent to acquire Activision Blizzard in an all-cash deal valued at $68.7 billion. Microsoft stated that this acquisition would make it the third-largest gaming company by revenue, following Tencent and Sony. With the announcement, Microsoft also announced a major change to its corporate structure, with Phil Spencer becoming CEO of the new division Microsoft Gaming, with Matt Booty leading Xbox Game Studios under it. Once approved, Activision Blizzard will then become a subdivision of Microsoft Gaming.[24][25][26]

Acquisitions and announcements[]

Xbox Game Studios had acquired many game development houses such as the acquisition of Bungie Studios in 2001 which gave it full control of the studio and shifted the development of Bungie’s game Halo: Combat Evolved to its Xbox platform.

In August 2002, MGS acquired Rare from Nintendo and the Stamper brothers (Chris and Tim), who owned 49% and 51% of the company respectively in what is believed to be one of the most expensive purchases of a video games development company yet, at a cost of around US 375 million. This also meant Microsoft acquired the rights to Rare’s own original IPs such as the Perfect Dark and Banjo-Kazooie franchises.

An announcement on April 6, 2006 brought news that Xbox Game Studios had purchased Lionhead Studios for an undisclosed sum, to further bolster the range of exclusive titles it could provide for the Xbox 360 platform.

During May 2006 Microsoft also acquired Massive Inc, an in-game advertising company to provide additional revenues from their gaming platforms such as PCs and the Xbox 360.

On May 4, 2007; Microsoft announced it would be opening a European office of Xbox Game Studios in Reading in the United Kingdom (The present location of Microsoft's General UK offices). This office will be headed by Phil Spencer, who was General Manager for the games division before the announcement.

Subsidiaries[]

  • 343 Industries
  • Compulsion Games
  • Double Fine
  • inXile Entertainment
  • Mojang Studios
  • Ninja Theory
  • Obsidian Entertainment
  • Playground Games
  • Rare
  • The Coalition
  • The Initiative
  • Turn 10 Studios
  • Undead Labs

Former[]

Closed[]

  • ACES Game Studio — Flight Simulator series, Combat Flight Simulator series and the upcoming Train Simulator 2
  • Carbonated Games — Hexic, 7 Hand Poker, UNO, Aegis Wing
  • Ensemble Studios — Age of Empires series, Age of Mythology series, Halo Wars
  • FASA Interactive — Shadowrun, Crimson Skies, Mechwarrior series
  • Lionhead — Black & White series, The Movies, Fable series

References[]

  1. Frank, Allegra (February 5, 2019). "Microsoft Studios is now Xbox Game Studios". Polygon. Archived from the original on February 6, 2019. Retrieved February 5, 2019. 
  2. Chalk, Andy (February 5, 2019). "Xbox Game Studios rebranding signals big changes for Microsoft's focus on gaming". PC Gamer. Archived from the original on February 7, 2019. Retrieved February 5, 2019. 
  3. Jones, Ali (June 9, 2019). "Psychonauts developer Doublefine is now an Xbox Game Studio". PCGamesN. Archived from the original on June 24, 2019. Retrieved June 9, 2019. 
  4. Kerr, Chris (June 10, 2019). "Microsoft has quietly established a new Age of Empires studio". Gamasutra. Archived from the original on June 10, 2019. Retrieved June 10, 2019. 
  5. Devore, Jordan (November 14, 2019). "Age of Empires IV had its gameplay debut at X019". Destructoid. Archived from the original on January 5, 2021. Retrieved November 14, 2019. 
  6. Calvin, Alex (August 20, 2019). "Gamescom 2019 - Microsoft's new Age of Empires arm isn't a developer, firm overseeing other studios working on IP". PGGamesInsider.biz. Archived from the original on August 20, 2019. Retrieved August 20, 2019. 
  7. McAloon, Alissa (August 13, 2019). "Multi-platform games from Xbox-owned studios must 'make sense for the franchise'". Gamasutra. Archived from the original on August 13, 2019. Retrieved August 13, 2019. 
  8. Dring, Christopher (August 20, 2019). "Microsoft has "no plans" to release more Xbox exclusives on PS4 or Nintendo Switch". GamesIndustry.biz. Archived from the original on August 27, 2019. Retrieved August 27, 2019. 
  9. Robinson, Andy (November 14, 2019). "Xbox is 'shifting focus' away from studio acquisitions". Video Games Chronicle. Archived from the original on November 14, 2019. Retrieved November 15, 2019. 
  10. Barton, Seth (January 10, 2020). ""All of our games… will play up and down that family of devices" – Xbox's Matt Booty ends the next-gen exclusive as we know it". MCV/Develop. Archived from the original on January 11, 2020. Retrieved January 10, 2020. 
  11. McWhertor, Michael (July 20, 2020). "Xbox Series X will have Microsoft's 'most diverse collection of first-party games'". Polygon. Archived from the original on July 20, 2020. Retrieved July 20, 2020. 
  12. van de Velde, Aernout (November 18, 2020). "Phil Spencer Says Xbox Needs to Focus More on RPGs; "Is An Area That We Should Focus"". wccftech. Archived from the original on December 9, 2020. Retrieved December 3, 2020. 
  13. Bass, Dina; Schreier, Jason (September 21, 2020). "Microsoft to Buy Bethesda for $7.5 Billion to Boost Xbox". Bloomberg News. Archived from the original on September 24, 2020. Retrieved September 21, 2020. 
  14. "Welcoming the Talented Teams and Beloved Game Franchises of Bethesda to Xbox". Xbox.com. September 21, 2020. Archived from the original on October 4, 2020. Retrieved October 4, 2020. 
  15. White, Same (November 15, 2021). "How Xbox outgrew the console: inside Phil Spencer's multi-billion dollar gamble". GQ. Retrieved November 15, 2021. 
  16. Yin-Poole, Wesley (March 8, 2021). "Microsoft's $7.5bn acquisition of ZeniMax approved in the US and EU". Eurogamer. Retrieved March 8, 2021. 
  17. Robinson, Andy (March 9, 2021). "Microsoft confirms its Bethesda acquisition is complete and 'some games' will be exclusive". Video Games Chronicle. Retrieved March 9, 2021. 
  18. "Form 10-K". SEC. June 30, 2021. p. 39. Retrieved August 7, 2021. 
  19. Warren, Tom (March 9, 2021). "Microsoft completes Bethesda acquisition, promises some Xbox and PC exclusives". The Verge. Retrieved March 11, 2021. 
  20. Orland, Kyle (March 9, 2021). "Microsoft confirms "some" new Bethesda titles will be exclusive to Xbox, PC". Ars Technica. Retrieved March 9, 2021. 
  21. Warren, Tom (March 11, 2021). "Xbox boss says Microsoft's Bethesda deal was all about exclusive games for Game Pass". The Verge. Retrieved March 11, 2021. 
  22. Kerr, Chris (February 25, 2021). "Ongoing Fallout 4 DLC lawsuit could impact Microsoft's takeover of Bethesda". Gamasutra. Retrieved February 25, 2021. 
  23. Makuch, Eddie (March 17, 2021). "ZeniMax Board Of Directors Dissolved After Xbox's Bethesda Purchase". GameSpot. Retrieved March 17, 2021. 
  24. Kovach, Steve (January 18, 2022). "Microsoft to buy Activision in $68.7 billion all-cash deal" (in en). CNBC. Retrieved January 18, 2022. 
  25. Warren, Tom (January 18, 2022). "Microsoft to acquire Activision Blizzard for $68.7 billion" (in en). The Verge. Retrieved January 18, 2022. 
  26. Phil Spencer (18 January 2022). "Welcoming the Incredible Teams and Legendary Franchises of Activision Blizzard to Microsoft Gaming". Xbox. Retrieved 19 January 2022. 

External links[]

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