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Microsoft Gaming’s Studios Are Working Together On New Games – With Blizzard on Fable & Obsidian on State of Decay 3

April 16, 2026 by Ryan Parreno

Microsoft could be a much more powerful game publisher if they could just lock in.

Xbox Chief Content Officer Matt Booty has shared some interesting insights about what’s going on behind the scenes.

As it turns out, the different developers have started working with each other, sharing tech and knowledge.

We’ll enumerate the examples Matt shared in the latest episode of Xbox Podcast below:

  • The Coalition sharing their work on Unreal Engine with InXile for Clockwork Revolution
  • Blizzard Cinematics working on Fable
  • Compulsion Games has been using Activision’s motion capture studio
  • Rare helping in Double Fine’s Kiln
  • Undead Labs bringing tech from State of Decay 2 to Obsidian’s Grounded
  • Obsidian bringing back their advancements from Grounded to State of Decay 3

And of course, there’s Xbox Games Technology Group. We just found out that Blizzard, well known for making some of the best cinematics in the industry, is helping make Fable.

It wouldn’t be unexpected if there are even more studios helping Playground Games polish Fable, especially if they’re committed to releasing this year.

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Category: UpdatesTag: Blizzard, Fable, Obsidian, Playground Games, State of Decay 3, Undead Labs

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