Phil Spencer likes to play the long game. Sometimes, it feels a little too long. If you’ve been staring at your Series X waiting for that massive wave of first-party exclusives we were promised years ago, you aren't alone. It's a weird time for the green brand. We're seeing a massive shift in how Microsoft handles its portfolio, moving away from "only on Xbox" to "mostly on Xbox, but maybe PS5 later." But behind the corporate shifting, the slate of Xbox projects active development is actually more crowded than most people realize.
We’re past the era of CGI trailers that mean nothing. Well, mostly.
The reality of game development in 2026 is that "active development" can mean anything from a vertical slice being polished for a showcase to a small team at Obsidian just throwing ideas at a whiteboard. You've got the heavy hitters like Fable and Perfect Dark finally showing real signs of life, but there's also a ton of movement under the Bethesda and Activision Blizzard umbrellas that hasn't fully hit the news cycle yet. It's a lot to track.
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The Heavy Hitters: Fable and the Playground Pivot
For a long time, Fable was just a logo and a dream. Now, it’s the centerpiece. Playground Games, the folks who basically perfected the open-world racing genre with Forza Horizon, are the ones holding the keys to Albion. That was a massive risk. Can a racing studio do a deep, choice-driven RPG?
Honestly, the footage we've seen suggests they’re leaning hard into the "Britishness" of the original trilogy. They've got Matt King (Super Hans from Peep Show) involved, which tells you everything you need to know about the tone. It’s not trying to be The Witcher. It’s trying to be funny, slightly gross, and visually stunning.
Development is deep. We know they're using the ForzaTech engine, which is why the lighting looks so good, but the real challenge has been the combat. Rumors from within the studio suggest the transition from cars to swords wasn't exactly smooth, but they’ve been hiring combat designers from across the industry to bridge that gap. It’s arguably the most important of the Xbox projects active development because it proves whether or not Microsoft can manage its "prestige" legacy IP without Peter Molyneux's... let's call it "optimism."
Perfect Dark’s Long Road Back
Then there’s Perfect Dark. This one has been a bit of a nightmare to track. You had The Initiative, the "A-A-A-A" studio, teaming up with Crystal Dynamics. That kind of partnership usually screams "development hell," but recent gameplay reveals showed a title that looks surprisingly cohesive.
- It’s a first-person "eco-thriller."
- Parkour is a huge focus.
- It’s not just a shooter; it’s a gadget-heavy immersive sim.
People were worried when the game’s director left early on. That’s usually a red flag. But the word is that the collaboration with Crystal Dynamics actually saved the project by providing the manpower The Initiative lacked. It's no longer a concept; it's a game people are actually playtesting right now.
The Bethesda Pipeline: Beyond Starfield
Bethesda Game Studios is a massive ship that turns slowly. With Starfield out and the Shattered Space expansion cycle maturing, the focus has shifted. Obviously, The Elder Scrolls VI is the white whale. It’s in active development, but "active" is a relative term here. It’s in full production, sure, but Todd Howard has been very clear that they want this to be a "decade game" like Skyrim.
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But don't ignore MachineGames. Their Indiana Jones and the Great Circle is a massive part of the current Xbox ecosystem strategy. It’s a licensed game, which used to mean "cheap cash-in," but the pedigree here is different. Using a first-person perspective for Indy was a bold choice—some would say a mistake—but it differentiates it from Uncharted. It’s less of a platformer and more of a "world interaction" game.
Obsidian is Just Busy
Obsidian Entertainment is basically the MVP of the Xbox stable right now. They just don't stop.
Avowed is the big one—a fantasy RPG set in the Pillars of Eternity universe. It’s smaller in scope than Skyrim, which is actually a good thing. We need games that don't take 200 hours to finish. They’ve also got The Outer Worlds 2 in the pipeline.
The interesting thing about Obsidian’s Xbox projects active development is how they manage teams. They’ve perfected the "small team, big impact" model with games like Grounded and Pentiment. While the big RPGs are being built, expect more of these smaller, experimental titles to pop up out of nowhere.
The Activision Blizzard Integration
This is where things get complicated. The acquisition was a mess of legal battles, but now that the dust has settled, the integration is happening. We’re seeing Call of Duty hit Game Pass, which is a seismic shift for the industry.
But what about the "dormant" IP?
There are whispers about Spyro and Banjo-Kazooie. Everyone wants a new Banjo. Phil Spencer knows everyone wants a new Banjo. The problem is finding the right studio. You don't just hand a legendary platformer to a random team. Currently, internal teams at Activision are being restructured. Some are staying on the CoD treadmill, but others are being given the freedom to pitch "AA" revivals of classic franchises. It’s a "wait and see" situation, but the IP is officially on the table for the first time in a decade.
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The Hardware Side: Not Just Software
You can't talk about Xbox projects active development without talking about the hardware. Microsoft has basically confirmed they are working on the "next generation," but the more interesting project is the handheld.
The Steam Deck changed everything.
Xbox knows they need a native portable device. Not just a cloud streaming handheld like the PlayStation Portal, but a dedicated "Xbox Handheld" that runs games locally. Sarah Bond has hinted at a "massive leap" in hardware. If they can put the power of a Series S into a handheld form factor, the "active development" of their software library takes on a whole new meaning. Imagine playing State of Decay 3 or Halo natively on the bus. That's the goal.
The Gears of War Reset
Gears of War: E-Day was a smart move. The Coalition realized that the story of the newer generation wasn't hitting the same way Marcus and Dom did. By going back to the beginning—Emergence Day—they are resetting the stakes.
Technically, this game is a showcase for Unreal Engine 5. The Coalition are wizards with Epic’s tech. They’ve historically been the studio that shows everyone else how to optimize for Xbox hardware. This isn't just a sequel; it's a technical benchmark for the mid-to-late generation of the Series consoles.
Minor Projects with Major Potential
- Contraband: Avalanche Studios (the Just Cause people) are making this co-op heist game. It’s been quiet, but it’s still very much alive.
- Everwild: Rare’s project. This one has been rebooted at least once. It’s beautiful, but they’re still figuring out what the "game" actually is.
- State of Decay 3: Undead Labs has grown significantly. They're moving from a "janky cult classic" vibe to a high-budget survival horror experience.
The Reality of the "Xbox Everywhere" Strategy
We have to address the elephant in the room. Some of these Xbox projects active development might end up on your PS5. Microsoft is pivoting. They want Game Pass subscribers, sure, but they also want that $70 from the 100 million people who own a PlayStation.
This doesn't mean Xbox is "dying." It means the definition of an "Xbox project" is changing. It's becoming a publishing label as much as a console ecosystem. For the player, this is mostly good news. More funding, more players, and more longevity for multiplayer titles. But for the "console war" enthusiasts, the lines are blurring fast.
What You Should Actually Expect
Don't expect every game announced in 2020 to be a masterpiece. Some will underperform. That’s just the nature of the beast. But the sheer volume of Xbox projects active development right now is higher than it was during the entire Xbox One era.
If you're looking to keep track of what's real and what's "marketing fluff," look at the job postings. Studios like Ninja Theory (post-Hellblade II) are already ramping up for their next project, which is rumored to be something entirely new, not a sequel. This "fail fast" and "innovate often" approach is what defines the current Xbox strategy.
Actionable Insights for the Xbox Fan
- Don't sleep on the "AA" games: Titles like Clockwork Revolution from inXile might actually be more interesting than the massive blockbusters because they take more risks.
- Check Game Pass expiration dates: If a first-party game is coming, older titles in the genre often get "perks" or updates.
- Watch the Handheld space: If you’re planning on buying a new console, wait to see what the Xbox handheld rumors look like by the end of the year.
- Follow the Tech: Most of these projects are moving to Unreal Engine 5. If you want to see what Gears or Fable will look like, look at UE5 tech demos; they are a direct preview of the visual fidelity Microsoft is aiming for.
The roadmap is finally becoming clear. It’s not just about "waiting for games" anymore; it’s about watching a massive corporate machine finally start to deliver on the billions of dollars it spent on acquisitions. It’s a weird, messy, and exciting time to be in the ecosystem.
Stay skeptical of "leaked" release dates, but stay optimistic about the variety. We’re getting everything from weird claymation-style adventures to massive space operas. That’s a win for anyone who likes games.
Next Steps for Players: Keep an eye on the upcoming summer showcases. That's where the "active development" status of titles like South of Midnight and OD (Hideo Kojima’s project) will likely move from "mystery" to "concrete gameplay." Also, make sure your storage expansion is ready—UE5 games are not getting any smaller.