Gears of War: E-Day budget reportedly $400m ahead of October release

Gears of War: E-Day reportedly cost $400m to develop as debate grows over its Xbox exclusivity

Gears of War: E-Day has reportedly been developed with a budget of around $400 million, according to comments made during the Insider Gaming podcast, raising questions about financial expectations surrounding the upcoming Xbox exclusive.

The latest entry in Microsoft's long-running shooter franchise is scheduled to launch on October 6.

However, discussion surrounding the game's reported development costs has intensified following claims that Xbox leadership decided against a multi-platform release late in development.

Speaking on the Insider Gaming podcast, journalist Tom Henderson said, “Gears of War’s budget is insane. Like I’ve heard upwards of $400 million. That budget is absolutely insane for Gears.”

The discussion centred on whether a title with such a large reported budget can generate sufficient returns while remaining exclusive to Xbox platforms and Xbox Game Pass.

Henderson expressed doubts about the game's commercial prospects, stating: “Let’s be honest, it probably wasn’t going to make money even if it was on PlayStation.”

He also questioned the impact the franchise could have on driving Xbox hardware and subscription growth, adding, “Who’s buying an Xbox and Game Pass for Gears?”

According to the podcast discussion, the decision to keep Gears of War: E-Day off PlayStation 5 was characterised as a move aimed at maintaining support among Xbox's core audience rather than a purely financial decision.

The conversation followed reports regarding an internal Xbox memo referenced in a recent report by Jason Schreier.

The memo reportedly stated that Xbox had spent more than $20 billion over the past five years on content, platforms and hardware subsidies, while annual revenue had declined by nearly half a billion dollars during the same period.

The document also reportedly highlighted increasing hardware costs, noting that console storage component expenses are currently more than double what they were last autumn and could rise to five times those levels by the 2027 holiday season.

Gears of War: E-Day was recently showcased during the Xbox Games Showcase, where Microsoft confirmed its October 6 release date and revealed new traversal mechanics ahead of launch.