Gears of War: E-Day reportedly cost Microsoft over $500mn to make
Microsoft reportedly spent more than $500mn developing Gears of War: E-Day, making it one of the most expensive video game productions in recent years, despite early sales estimates suggesting a difficult path to profitability.
The figure, which excludes marketing expenses, was reported by Kotaku on October 22, citing a source familiar with Xbox’s business.
Chris Dring, co-founder of The Game Business, subsequently supported the estimate, saying his own sources had confirmed the $500mn figure.
The reported spending would put the title well above several other major releases. Sony’s Marvel’s Spider-Man 2 reportedly cost approximately $300mn to develop, while The Last of Us Part II had a budget of around $220mn.
However, the total has prompted debate over how Microsoft accounts for development expenses, particularly because The Coalition, the studio behind Gears of War, also provides technical support to other Xbox projects.
Gears of War: E-Day Sales Fall Short of Its Reported Budget
The game’s reported production costs have attracted attention following its October 6 release on Xbox Series X|S and PC.
According to estimates from Alinea Analytics, Gears of War: E-Day sold approximately 230,000 copies during its first week, generating around $37 million in revenue.
A significant portion reportedly came from Xbox Game Pass subscribers purchasing a $30 Premium Edition upgrade to gain early access.
The figures do not account for the full financial contribution of Game Pass subscriptions, meaning they cannot be treated as Microsoft’s total revenue from the game.
Despite the modest estimated sales, E-Day received positive critical reviews, achieving the franchise’s highest Metacritic score since the original Xbox 360 trilogy.
The disparity between its reported development costs and initial sales has raised questions about Microsoft’s decision to keep the title exclusive to Xbox consoles.
Although Microsoft has increasingly released its games on PlayStation, E-Day remains unavailable on PS5.
Why does the game’s budget remain disputed?
Questions about the game’s production costs first emerged in June, when Insider Gaming journalist Tom Henderson claimed its budget exceeded $400mn.
Windows Central’s Jez Corden challenged that estimate, arguing that spending attributed to The Coalition also covered technology development and support for other Microsoft studios.
Following Kotaku’s latest report, Corden acknowledged that the $500mn figure appeared credible but said his sources disagreed about how much of that expenditure belonged directly to E-Day.
The Coalition has contributed technical expertise to several Xbox projects, including Forza and Fable, complicating attempts to calculate the costs of individual games.
According to Kotaku, an additional PlayStation release would not necessarily have allowed E-Day to recover its development costs, although keeping the game exclusive could help Microsoft strengthen engagement within the Xbox ecosystem.
