A November 2, 2026 report from Windows Central says Microsoft auditors attributed more than $500 million to The Coalition across Gears of War 5 and Gears of War: E-Day. The report describes a studio-wide cost allocation spanning roughly six to seven years, rather than a standalone production budget for E-Day.
What the reported figure covers
The amount is attached to The Coalition’s work across both Gears games. Windows Central’s account also describes shared technology and support work beyond those titles, so the reported figure is a broader studio cost attribution, not a price tag for E-Day by itself.
A studio-level allocation can cover work that supports several projects alongside game development. Windows Central names contributions to Avowed, Hellblade 2, Clockwork Revolution, State of Decay 3, Grounded and Grounded 2 among The Coalition’s other work for Xbox.
The report also says The Coalition worked with Epic Games on the Matrix Awakens and Alpha Point technology demonstrations. It says tools and techniques from those demonstrations were later used in other first- and third-party products during 2020 and 2021. Separately, Windows Central reports that the studio spent more than a year and a half on an Xbox prototype that was later canceled.
Derek Reese’s explanation of shared Unreal Engine costs
Former Xbox Senior Product Manager Derek Reese said The Coalition was responsible for Microsoft’s branch of Unreal Engine and its support costs. In a Bluesky post dated November 2, 2026, he said he had tried to persuade leadership to have other studios adopt the technology and share or write off those costs. Reese’s post on Bluesky also compares the issue with Turn10 and ForzaTech.
