Microsoft's Gaming Studio Count Drops by a Third Amid Subscription Fee Fiasco

Microsoft's gaming division has undergone significant restructuring in recent years.

In 2023, the company had 40 studios under its control. However, this number has dwindled to 24 by 2026 due to a combination of factors.

The initial motivation behind Microsoft's acquisition spree was to bolster its Game Pass subscription service with a constant stream of releases and drive user growth during the pandemic-induced market boom.

However, the company's reliance on fixed subscription fees failed to offset inflated production budgets, leading to a sharp decline in direct sales on both physical and digital media.