Microsoft adds five game studios to first-party stable

At Microsoft's E3 press conference in Los Angeles today, Xbox head Phil Spencer announced the addition of five first-party studios.

In previous years, Microsoft had shed much of its stable of first-party studios. The addition of the new studios appears to be an effort to rebuild that internal lineup.

Spencer announced the creation of The Initiative, a Santa Monica-based studio headed by industry vet Darrell Gallagher working on an unannounced game.

He also announced the acquisitions of Undead Labs (State of Decay), Compulsion Games (We Happy Few), Playground Games (Forza Horizon), and Ninja Theory (Hellblade: Senua’s Sacrifice).

Spencer said the addition of studios will help Xbox “take bigger risks and create bolder worlds.”