Xbox: The State of Every First-Party Developer – Summer 2025 Update
It’s the summer of 2025, and the Xbox landscape is a dynamic one. Recent industry shifts, including the significant layoffs that impacted studios and projects, are shaping the future. Despite these challenges, several developers are working on exciting titles poised to elevate the Xbox ecosystem. This article provides a studio-by-studio breakdown of what Xbox’s first-party developers are currently up to.
Arkane Studios
Following the closure of Arkane Austin, attention has firmly shifted to Arkane Lyon. The French studio is now entirely focused on Marvel’s Blade, announced at the 2023 Game Awards. This action-adventure title will feature the iconic vampire hunter in a third-person perspective. The game is set in Paris, where Blade is trying to protect the city from a vampire invasion. Arkane’s experience with immersive worlds and unique gameplay mechanics should make for a distinct take on the character. Production on Marvel’s Blade ramped up in late 2024, according to financial reports, so expect more news soon.
Bethesda Game Studios
Bethesda Game Studios is primarily focused on The Elder Scrolls VI. It was first teased back in 2018. Development was initially held back while the team worked on Starfield, but it is now fully underway, according to Bethesda. While information remains scarce, the team has stated there are “early builds” of the game. A potential Fallout installment is rumored to be in the works as well. Whether this is being handled internally or by another studio remains unconfirmed. The Elder Scrolls VI will be one of the biggest system sellers when it’s available.
Blizzard Entertainment
Blizzard Entertainment has consolidated its resources around its flagship titles: Diablo IV, Overwatch 2, and World of Warcraft. With the cancellation of “Odyssey,” an unannounced fantasy survival project, Blizzard is concentrating on improving the core experiences. Overwatch 2 will continue to roll out new characters and competitive formats. Diablo IV will maintain its seasonal model, with expansions to story and systems coming regularly. In World of Warcraft’s case, the “Worldsoul Saga” continues with consistent updates to the Classic version as well.
Compulsion Games
Compulsion Games recently released South of Midnight, an action-adventure title set in a Southern Gothic world. It puts you in the shoes of Hazel Flood as she trains to become a Weaver. Players encounter mythical beings and engage in combat and platforming. Compulsion Games is now seeking its next project. The studio, known for its atmospheric and narrative-driven experiences, may be exploring new ideas or returning to a familiar genre. Hopefully, we’ll hear something soon.
The Coalition
The Coalition, Xbox’s dedicated Gears of War studio, has a lot on its plate. Gears fans can look forward to Gears of War: Reloaded, a 4K remaster of the original game, set to release on August 26, 2025, on Xbox Series X/S, PC, and PS5. Beyond that, the studio is deeply involved in creating Gears of War: E-Day, a prequel set 14 years before the first game. This title will focus on Emergence Day, the cataclysmic event that defined the Gears universe, and is currently slated for 2026.
Double Fine Productions
After the success of Psychonauts 2, Double Fine Productions is releasing Keeper on October 17, 2025. This puzzle adventure will involve the intertwined journey of a lighthouse and a seabird. Double Fine’s signature storytelling and art direction will be on display, and it looks to be a more mellow and thoughtful experience than previous games from the studio. There will also be a focus on a “story told without words” which should be interesting for fans.
Halo Studios
Halo Studios is navigating a period of transition. While it continues to support Halo Infinite, the team is also embarking on new projects, including an unannounced game built using Unreal Engine 5. Despite the iconic nature of the franchise, the studio has faced internal challenges, including restructuring and adjustments after the recent layoffs. The current plan is for Halo Studios to reveal its new game at the Halo World Championships in October 2025.
Id Software
Id Software recently released Doom: The Dark Ages. A prequel to 2016’s Doom, this installment is set in a dark fantasy world. It features a slower, more methodical combat style. New weapons and abilities are also available. With Doom: The Dark Ages launching this year, Id Software’s future plans remain shrouded in secrecy. Given the studio’s penchant for pushing technological boundaries and delivering high-octane action, its next project is sure to be worth the wait.
Infinity Ward
Infinity Ward plays a central role in Activision’s ongoing Call of Duty cycle. The studio was most recently the lead developer on 2022’s Call of Duty: Modern Warfare 2. The group also provided support for the 2023 and 2024 releases. Infinity Ward’s contribution to the next iteration remains undisclosed. It may be working on supporting Black Ops 7, or it could be in the pre-production phase for a subsequent Call of Duty project.
Inxile Entertainment
Inxile Entertainment is gearing up for the release of its first Xbox Game Studios title, Clockwork Revolution. This steampunk RPG is set in a vibrant world filled with crime and intrigue. The game will enable players to manipulate time, impacting the story. Clockwork Revolution is aiming to be Inxile’s most ambitious title so far, but it still doesn’t have a firm release window.
King
King, the mobile gaming giant, continues to operate Candy Crush, along with new entries such as Candy Crush Solitaire. Despite the success of its main series, King faced cutbacks during the Microsoft layoffs. It will be important to keep an eye on what the studio is cooking up on the mobile front.
MachineGames
MachineGames, acclaimed for its Wolfenstein series, is supporting Indiana Jones and the Great Circle with story DLC. The Order of Giants will be available September 4, 2025. Indiana Jones and the Great Circle was praised for its blend of first- and third-person gameplay. It was also noticed for the strong performance of Troy Baker as Indiana Jones.
Mojang Studios
Mojang Studios continues to develop and update Minecraft. “Chase the Skies” came out in June 2025 and adds more biomes and mounts. A Minecraft movie also had a strong performance in theaters. Mojang Studios continues to innovate in the survival genre.
Ninja Theory
After releasing Senua’s Saga: Hellblade 2, Ninja Theory may be focusing on Project: Mara, a horror game exploring “real-world and grounded representations of mental terror.” Details remain scarce, but Ninja Theory’s expertise with mental health will likely play a role. There’s another game in development as well.
Obsidian Entertainment
Obsidian Entertainment has been busy. Earlier this year, the studio released Avowed, a fantasy RPG set in the Pillars of Eternity universe. The studio is also developing Grounded 2, a sequel to the online co-op game, coming to Early Access on July 29, 2025. And finally, The Outer Worlds 2 is scheduled for release on October 29, 2025. The Outer Worlds 2 will maintain the tone of the first game, while expanding on the combat and exploration.
Playground Games
Playground Games, known for Forza Horizon, is working on the Fable reboot. The game has been delayed into 2026. While originally planned for a 2025 launch, Fable now has a 2026 release window.
Rare
Rare was impacted by the Microsoft layoffs. Everwild has been canceled. Sea of Thieves will likely continue.
Raven Software
Raven Software is co-developing Call of Duty: Black Ops 7 alongside Treyarch. Raven previously developed the single-player campaign for Black Ops 6.
Sledgehammer Games
Sledgehammer Games assisted in 2024’s Black Ops 6. The studio lost 30% of its staff in layoffs back in 2024.
Treyarch
Treyarch is co-developing Call of Duty: Black Ops 7, and also developed Call of Duty’s Zombies for the Vanguard, Modern Warfare 3, and Black Ops 6 entries.
Turn 10 Studios
Turn 10 Studios was impacted by layoffs. Jason Schrier reported that Turn10 lost almost 50% of its staff. The Forza Motorsport series will no longer be supported.
Undead Labs
Undead Labs has been working on State of Decay 3. Several reports say there have been issues with development.
World’s Edge
World’s Edge is the steward of Age of Empires. The group released a remaster of Age of Mythology, Age of Mythology: Retold, on September 4, 2024.
ZeniMax Online Studios
ZeniMax Online Studios has been working on updates for Elder Scrolls Online since 2014. It was also impacted by layoffs. Matt Firor has stepped down. Project Blackbird has been canceled.
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