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 "next-generation action espionage game" *Physint* in September 2026, after Sony Interactive Entertainment unexpectedly canceled the project. PlayStation Studios abruptly dropped the collaboration with Kojima Productions without advance warning on September 11, despite having introduced *Physint* earlier in 2024 as part of its partnership. This development makes a PC release more likely for *Physint*. Previously, on September 5, Double Fine, which regained independence from Xbox Game Studios in July, unveiled its first post-Xbox game, *Thank You Bus Driver*. Studio founder Tim Schafer declared his studio would continue making distinct games. This followed the redesign of the female protagonist for Xbox Game Studios and Playground Games’ upcoming action role-playing game *Fable* ahead of Gamescom 2026 on August 24. Earlier, on August 21, Compulsion Games, developer of *South of Midnight*, became fully divested from Xbox Game Studios, with Microsoft no longer owning its original IP. This move was part of CEO Asha Sharma's "Xbox Reset" and the July layoffs affecting several Xbox Game Studios teams.
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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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