Microsoft has announced five new game development studios joining its first-party lineup – doubling down on its commitment to top-tier games for Xbox One. Announced on stage at its E3 2018 press conference, the firm has kickstarted a new studio, while acquiring four existing teams from across the globe.

As we previously reported, "The Initiative" is a new in-house studio headed by Darrell Gallagher – former head of Crystal Dynamics and senior vice president at Activision. The new Santa Monica-based will work on "AAAA" experiences to further develop Microsoft's exclusive offerings.

Microsoft has also acquired "Playground Games" of Forza Horizon fame, State of Decay 2's "Undead Labs," "Compulsion Games" of We Happy Few, and "Ninja Theory" behind Hellblade: Senua's Sacrifice.

This makes for Microsoft Studio's biggest commitment to delivering first-party games so far, with some significant talent backing the publisher. While it might take time for new titles from these studios to surface, it paints a promising future for its gaming efforts.