Microsoft Acquires Four Studios and Opens a New One

Microsoft kept the gaming announcements coming at its Xbox E3 press conference where it announced a series of studio acquisitions meant to bolster the original gaming content emerging from the console maker. Xbox boss Phil Spencer promised a huge showcase this year and he delivered on that promise ten-fold!

Microsoft also announced a new first party AAA studio called The Initiative that will be led by Darrell Gallagher, formerly head of Crystal Dynamics, and based in Santa Monica, Calif. Undead Labs created State of Decay. Because of that, there was a focus on their premium subscription service Xbox Game Pass and which titles have been added to the growing library. The studio is now building a team of "world class talent" to develop "groundbreaking new game experiences". Spencer confirmed that Playground is making a brand-new game, which is rumored to be Fable 4.

Spencer said that not only will the developer continue to work on the Forza Horizon franchise, but it will also "bring its open-world expertise to a brand-new project".

In what seems like the biggest get for Microsoft, Ninja Theory also joins the roster of first-party studios.

Ninja Theory is best known for producing 2017's breakout indie hit Hellblade: Senua's Sacrifice. And, Compulsion Games is behind the dystopian We Happy Few.

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