Microsoft Studios has acquired the rights to the "Gears of War" franchise from Epic Games, including rights to all existing and future games, entertainment experiences and merchandise. In addition, Black Tusk Studios in Vancouver, BC will take over development of the "Gears of War" franchise and that Rod Fergusson, former Director of Production at Epic Games on the "Gears of War" franchise, will join Microsoft on the development of the franchise going forward.

According to Phil Spencer, Head of Microsoft Studios, the "Gears of War" franchise has "a very strong, passionate and valued fan base on Xbox." Over twenty-two million units have been sold across all "Gears of War" titles worldwide, grossing over $1B dollars (US).

Hanno Lemke, General Manager of Black Tusk Studios at Microsoft Studios, said that Epic will remain "partners and good friends" of Microsoft Studios.