Microsoft continues to adjust the affiliations of its Xbox studios, drawing attention to the future of Xbox Game Studios as a publishing division. Push Square editor Sammy Barker believes the division may further contract; how these changes will affect Microsoft's future game releases on PS5 remains difficult to predict.
This round of adjustments comes with layoffs. Previously, Microsoft spun off several studios and laid off 1,600 employees; other reports suggest the total number of layoffs before the end of this fiscal year will reach 3,200. Barker focuses on the changes in team affiliations: according to his understanding, those still under Xbox Game Studios include The Coalition, inXile Entertainment, Halo Studio, Playground Games (which has merged with Turn 10), and Xbox Game Studios Publishing.
Barker believes that Xbox Game Studios Publishing is closer to a business support department than a game development team. Rare and World’s Edge have been moved under Activision, while Obsidian has transferred to Bethesda. He also points out that Halo Studio has been affected by layoffs, with the development of future Master Chief titles handled by Activision, raising questions about whether the team will remain under the Xbox Game Studios banner.
Under this classification, Barker believes the division currently mainly consists of three game development teams: The Coalition, inXile Entertainment, and Playground Games. Each team has upcoming releases: Gears of War: E-Day is scheduled for release on October 6, Fable is planned for February 23 next year, and Clockwork Revolution is slated for 2027. Among these, Gears of War: E-Day and Clockwork Revolution will be released as Xbox console exclusives.
Barker speculates that these three teams might also move into the Activision, Bethesda, or Blizzard systems after their respective titles are released; this is not an arrangement officially announced by Microsoft. He believes Xbox Game Studios may cease to exist as an independent publishing division next year, but there is currently no definitive conclusion on how Microsoft will distribute publishing responsibilities for its first-party games in the future.
As for PS5, Barker notes that Activision has continued to release multi-platform games since being acquired by Microsoft; Bethesda previously launched console exclusives Redfall and Starfield, with Starfield now available on PS5. Although both companies belong to Microsoft, they currently operate as separate publishers. The current arrangements are insufficient to determine the platforms for Microsoft's future new releases.