The State of Microsoft Gaming: Xbox Game Studios, Bethesda, Activision, and Blizzard in 2025

With the Xbox 2025 Showcase approaching, Microsoft’s gaming division—spanning Xbox Game Studios, Bethesda Softworks, Activision, and Blizzard—is buzzing with activity. This comprehensive overview details confirmed projects, credible leaks, and intriguing rumors shaping the future of Microsoft’s gaming ecosystem. From first-party studios to external partnerships and innovative hardware, here’s the latest as of June 5, 2025.

Xbox Game Studios

Microsoft’s first-party studios are delivering a mix of blockbuster franchises, new IPs, and experimental projects. Here’s what each studio is working on:

Halo Studios (Formerly 343 Industries)

Halo Infinite: Ongoing post-launch content, focusing on multiplayer stability and seasonal updates.
New Halo Projects: Multiple titles in development using Unreal Engine 5, including a potential non-direct sequel to Halo Infinite and a remake of Halo: Combat Evolved. No confirmed release windows.
External Projects: Project Ekur, a rumored multiplayer title at Certain Affinity, evolved from the canceled Project Tatanka. Halo Studios is also exploring transmedia projects, building on the Halo TV series on Paramount+.

The Coalition

Gears of War: E-Day: Main project, supported by People Can Fly (Project Maverick). A prequel focusing on the Locust invasion’s origins.
Gears of War: Reloaded: A free upgrade for Gears of War Ultimate Edition, set for August 26, 2025, on Xbox Series X|S, PC, and PS5.

Compulsion Games

South of Midnight: Recently released with strong reception for its Southern Gothic style. No confirmed details on the next project, though job listings suggest a narrative-driven title.

Double Fine

Unknown Projects: Teased in Double Fine PsychOdyssey to be working on at least two projects. Project Kiln is a rumored codename but lacks credible sourcing.

The Initiative

Perfect Dark Reboot: In development with Crystal Dynamics (Embracer Group) and rumored support from Certain Affinity on weapons and levels. No confirmed release window.

inXile Entertainment

Clockwork Revolution: A steampunk RPG (Project Cobalt) in full production using Unreal Engine 5, confirmed for 2026.
Second Project: In pre-production, rumored to be an existing IP, but no specific franchise confirmed.

Mojang Studios

Minecraft: The Chase the Skies update (1.21.6) is set for June 2025, introducing new biomes and mechanics.
Project Spicewood: Rumored sequel to Minecraft Dungeons.

Ninja Theory

Senua’s Saga: Hellblade 2: PS5 port confirmed for Summer 2025.
Project Mara: A smaller-scale title exploring mental terror, based on research and firsthand accounts.
The Insight Project: An R&D effort for smaller games addressing mental health, in collaboration with University of Cambridge’s Paul Fletcher.

Obsidian Entertainment

Avowed: Post-launch content includes new quests and systems.
The Outer Worlds 2: Confirmed for Fall 2025, with a dedicated Direct post-Xbox 2025 Showcase.

Playground Games

Forza Horizon 5: Ongoing content updates with new festivals and cars.
Fable Reboot: Delayed to 2026 due to Unreal Engine 5 challenges.

Rare

Sea of Thieves: Ongoing seasons and events, bolstered by cross-platform play.
Everwild: A new IP with cinematic reveals but limited gameplay details. Multiple reboots reported.

Turn 10

Forza Motorsport: Maintaining the Forza Tech engine and post-launch content, emphasizing realism and accessibility.

Undead Labs

State of Decay 3: In development using Unreal Engine 5, supported by a new Orlando, Florida studio. Likely for 2026.
Community Focus: Prioritizing deeper base-building and co-op features.

World’s Edge

Managing external partners for the Age of series:

Age of Empires 2: Definitive Edition and Age of Empires 4: Ongoing updates.
Age of Mythology: Retold: Second expansion in development.

Xbox Global Publishing

Xbox Global Publishing collaborates with external studios to deliver titles, often for Game Pass. Here are the key projects:

Confirmed Projects

Contraband (Avalanche Studios): A co-op heist game (Project Typhoon), announced in 2021 but silent since.
Ara: History Untold (Oxide Interactive): A 4X strategy game (Project Indus), released in 2024, with a console version planned.
OD (Kojima Productions): Announced in 2022, revealed at The Game Awards 2023. Features cloud gaming and PT-like horror elements.
Towerborne (Stoic Studio): A hybrid ARPG (Project Belfry), currently in Game Preview.</需要在>
Microsoft Flight Simulator 2024 (Asobo Studio): Ongoing updates with new flight paths and weather systems.
Ninja Gaiden 4 (Platinum Games/Team Ninja): Confirmed for Fall 2025, likely multiplatform.

Rumored Projects

Project Shaolin (Brass Lion Entertainment): Anime-style ARPG with Wu-Tang Clan music.
Killer Instinct (Possibly Bandai Namco): Rumored revival, possibly tied to the 10th Anniversary Update.
Project Suerte (Certain Affinity): A multiplayer title.
Project Dragon (IO Interactive): An MMO-lite medieval RPG. Xbox’s involvement is unconfirmed.
Spyro 4 (Toys for Bob): In development by the now-independent studio, likely for Game Pass.

Cloud Gaming Division

Announced at GDC 2022, Xbox Game Studios Publishing for Cloud Gaming, led by Kim Swift, is developing “cloud-native” titles to enhance Xbox Cloud Gaming.

Bethesda Softworks

Bethesda’s studios are balancing major franchises and new projects:

Arkane Studios

Blade: A third-person Marvel action game.
Deathloop: Potential DLC or sequel, as voice actors continued work post-launch.
Dishonored 3: Listed in the Xbox vs. FTC leak, but unconfirmed. Arkane maintains the Void Engine.

Bethesda Game Studios

Fallout 76 and Starfield: Ongoing updates, with Starfield receiving yearly expansions.
Elder Scrolls Castles: Likely Project Wormwood, a mobile title with post-launch updates co-developed by Virtuous Games.
The Elder Scrolls VI: In development using Creation Engine 2. No release window.
Spy Team: A registered IP, possibly stealth-focused.

id Software

Doom: The Dark Ages: In development with DLCs, using id Tech 7 (Doom Zero Year in leaks).

MachineGames

Indiana Jones Expansion: In development for Lucasfilm Games, details unknown.
Wolfenstein 3: Rumored, likely post-Indiana Jones (2027+).

ZeniMax Online Studios

Elder Scrolls Online: Gold Road: Ongoing support with new chapters.
Unannounced Projects: Job listings suggest at least two projects, possibly Project Kestrel and an expansion. Supported by a new Wisconsin studio and ZeniMax Hungary (formerly Nemesys Games).

Activision

Activision’s studios are focused on Call of Duty, with select legacy IPs:

Call of Duty Projects

Warzone 2 (Raven Software): Ongoing support with new maps and modes.
Call of Duty Mobile (TiMi Studio Group): External support for updates.
Call of Duty 2025: A sequel to Black Ops 2 with a large zombie map and wall-running via omnimovement.
Call of Duty 2026: Reportedly Modern Warfare 4, set in the Koreas.

Other Projects

Tony Hawk Pro Skater 3+4: Confirmed for July 11, 2025, with interest in Underground re-releases.
Infinity Ward RPG: Unannounced RPG based on 2022 job listings.
Elsewhere Entertainment: A narrative-driven franchise with multiplayer elements, in development since 2022.
Guitar Hero Revival: Teased by Bobby Kotick.
Hexen: Phil Spencer expressed interest in reviving Raven Software’s classic IP.

Call of Duty will remain multiplatform for at least 10 years, expanding to Nintendo systems and cloud services like Boosteroid, Ubitus, and GeForce Now. Microsoft is reconsidering annual releases, with plans through 2027.

Cultural Shifts

Post-acquisition, Activision is aligning with Microsoft’s focus on workplace culture reform and player feedback, especially in Call of Duty’s community engagement.

Blizzard

Blizzard is supporting core franchises and exploring new ventures:

World of Warcraft: Ongoing support with Midnight and The Last Titan expansions.
Hearthstone, Overwatch 2, Diablo III, and Diablo Immortal: Regular updates, with Overwatch 2 focusing on competitive balance.
Diablo IV: Ongoing seasons with a second expansion planned for 2026.
StarCraft Shooter: In development, with Sarah Bond expressing a “strong desire” to revive StarCraft. External developers (NCSoft, Nexon, Netmarble, Krafton) have pitched StarCraft-based projects for Asia.

Blizzard’s Revival

The cancellation of Odyssey (2024) redirected resources to core IPs and new projects, focusing on player trust.

King

King, a mobile gaming leader, continues to dominate with Candy Crush. More details at King’s official site.

Rumored Projects from Unknown Sources

Project Velvet: Codename with no details.
Disney IPs: Rumors of additional Disney projects beyond Indiana Jones, possibly Marvel or Star Wars.
Ori 3: Unconfirmed, with Moon Studios’ Thomas Mahler noting Microsoft’s interest.
Licensed Game (ZeniMax): A non-Indiana Jones Disney project, per the FTC leak.
Fallout 3 Remaster: Likely by Virtuous Games, expected in 2027-2028.
Project Platinum, Project Ubu, Project Wanderer: Listed in the FTC leak, but details absent.

External Adaptations and Partnerships

Fallout Season 2 and 3: In production for Amazon Prime Video by Lisa Joy and Jonathan Nolan.
Gears of War: Netflix is developing an animated series and live-action movie.
Grounded: A Netflix TV series is in development.
Halo TV Series: Season 2 aired on Paramount+ in 2024, with further transmedia projects under consideration.

Backwards Compatibility and Game Preservation

Xbox/360 Backwards Compatibility: Ongoing but low-priority due to licensing issues, with no new games added since November 2021.
Game Preservation Team: Led by Sarah Bond, focusing on digital storefront improvements.
Activision Titles: Over 100 Activision/Sierra Online games are available via Ant Online and Game Pass. Updated Transformers game ratings in Australia (2024) suggest relicensing progress, but not confirmed as resolved.

Hardware

Project Brooklin (Series X Refresh): All-digital, 2TB SSD, USB Type-C with Power Delivery, Wi-Fi 6E, Bluetooth 5.2. Expected late 2025.
Project Ellenwood (Series S Refresh): Wi-Fi 6E, Bluetooth 5.2.
Project Sebile (Controller): Cloud connectivity, haptic feedback, modular thumbsticks, rechargeable battery, motion-wake.
Project Actium (Elite Controller): Incorporates Sebile features.
Project Zarasai: Luxury controller.
Project Parkview: Revised Xbox Wireless Headset.
Next-Gen Hardware: Multiple SKUs, digital focus, Zen 6 ARM CPU, Navi 5 GPU, enhanced cloud support. The Xbox handheld (Project Kennan) is on hold to prioritize Windows 11 optimization for handheld PCs.
Project Igraine: Updated controller listings for Sebile compatibility.

Microsoft’s Strategic Vision

Multiplatform Strategy: Exclusivity is “the exception, not the rule,” per Jez Corden, with titles like Gears of War: Reloaded and Hellblade 2 on PS5.
Game Pass: Day-and-date releases remain key, boosting subscriptions with Call of Duty and first-party titles.
Cloud Gaming: Xbox Cloud Gaming is a priority, with projects like OD enhancing accessibility.
Cultural Reforms: Microsoft is addressing workplace issues post-Activision Blizzard acquisition, emphasizing diversity and player feedback.

Conclusion

Microsoft’s gaming division is poised for a transformative era, blending blockbuster franchises, new IPs, and innovative hardware. The Xbox 2025 Showcase will likely clarify timelines for The Outer Worlds 2, Clockwork Revolution, and Blade, while addressing projects like Contraband. With a multi-platform approach, Game Pass expansion, and game preservation efforts, Xbox is redefining accessibility and innovation. Stay tuned for updates.

Note: This article reflects confirmed announcements, credible leaks, and rumors as of June 5, 2025. Exclusivity is expected to be limited, with many titles targeting multiple platforms. Let us know in the comments if we missed anything!

Sources: Jez Corden, Jeff Grubb, Shpeshal Nick, Andy Robinson, Jason Schreier, Bloomberg, and the Xbox vs. FTC leak.