Gears of War: E-Day is reported to have cost $500 million to develop, with sales figures suggesting it has sold just over 400,000 copies. Launched on Xbox Series X and S and PC, the title also became available day one on the Xbox Game Pass subscription service.
Recent reports indicate that E-Day has sold more than 400,000 units across both console and PC. For a game of Gears of War's scale and prestige, this is considered a low sales figure. Given the substantial budget, the commercial situation could be particularly challenging for Microsoft and developer The Coalition.
Bloomberg reporter Jason Schreier corroborated earlier reports regarding E-Day's budget, stating that the figure of $500 million is accurate. He noted that such costs are typical for AAA games developed in North America today, contributing to industry trends like layoffs, cost-cutting measures, and a focus on major, low-risk franchises. The $500 million figure, reported initially by Kotaku as pre-marketing costs, places E-Day among the most expensive video games ever made, surpassing the reported budgets of titles like Marathon (over $250 million) and Concord (around $200 million). Development costs for The Last of Us: Part II and Horizon Forbidden West were also revealed to be over $200 million each. Activision previously disclosed spending $700 million on Call of Duty: Black Ops Cold War over its lifecycle.
As of October 13, approximately one week after the game's release, an estimate from Rhys Elliott of Alinea Analytics suggested E-Day had generated $42.1 million in revenue, with 311,000 copies sold on Steam and Xbox combined. The release appears to have provided a boost to Game Pass subscriptions, though the absence of a PlayStation 5 version may have limited potential revenue.
This situation raises questions for Microsoft regarding the impact of E-Day on Game Pass subscriptions and its overall profitability, especially given the substantial development investment. Xbox CEO Asha Sharma has highlighted record-breaking titles like Minecraft and World of Warcraft Forever, alongside the critical success of Call of Duty: Modern Warfare 4, in discussions about Xbox's financial performance, with no specific mention of Gears of War: E-Day.
Concerns have been raised about the future of the Gears of War franchise. The head of The Coalition addressed reports of potential layoffs, stating that the next game in the series would not take as long to develop. Internal sources at the studio had expressed anxiety about job security following E-Day's release, with some anticipating further layoffs or reorganization. Xbox has undergone significant restructuring under CEO Asha Sharma, resulting in thousands of job cuts and the consolidation of studios.
Studio head Mike Crump has described E-Day's success as extending beyond sales figures, emphasizing its role in showcasing Xbox platform capabilities and pushing hardware limits. The stated goal for the game was to be the best-looking title on Xbox and demonstrate the potential of its hardware.