Xbox Game Studios

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 in March 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.

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.

Around March 2000, Microsoft transitioned the 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 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 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 was rebranded on February 5, 2019 as Xbox Game Studios to reflect the usage of its Xbox brand to support gaming across all the devices it supports.

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 IP’s 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

 * Bungie Studios — Halo series, Myth series, Marathon series, Destiny series

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