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Former Xbox Manager Explains Why $500M Cost For Gears: E-Day Doesn't Tell The Whole Story

Summary by Pure Xbox
"I should know...".Over the past couple of weeks, there's been a lot of chatter about a rumoured $500 million cost for The Coalition to make Gears of War: E-Day, alongside debates about how much of that money went on the game itself.Speaking on the weekend, former Xbox exec Derek Reese shared his take on the situation, suggesting that The Coalition is heavily involved with supporting Microsoft's branch of the Unreal Engine, which is where a lot …
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Xbox would have allocated $500 million in budget for The Coalition and all its projects with Unreal Engine 5, including Gears E-Day, Gears 5, Matrix's demo with Epic Games and other Microsoft projects.

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The discussion about the alleged cost of Gears of War: E-Day gets an important new classification. According to a report, Microsoft has invested 500 million dollars. The former senior product manager at Xbox, Derek Reese, now explains that this sum should not have been incurred solely for the development of the shooter. Microsoft and The Coalition [...]

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He also believes that $500 million is the total cost of maintaining the studio after the release of Gears 5, not the E-Day net budget.

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TwistedVoxel broke the news on Sunday, November 1, 2026.
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