From around July, rumors began to swirl that Gears of War: E-Day had cost upwards of half a billion dollars, raising questions about the state of AAA game development.

I can confirm at my end that Microsoft's financial auditors have attributed upwards of $500 million to The Coalition between Gears of War 5 and Gears of War: E-Day. But through multiple sources, I have a clearer picture of how that money has been spread and allocated over the past 6-7 years, and why there are even some internal disagreements over how exactly attribution should be distributed.

The reports of Gears of War: E-Day costing upwards of half a billion emerged first via Tom Henderson of Insider Gaming, and were later corroborated by Kotaku's Ethan Gach, with an extra $100 million on top.

I pushed back against the claims on my own show with preliminary information I'd received over the summer that The Coalition's budgeting situation is more complex than simply "Gears of War: E-Day cost half a billion dollars."

Multiple sources familiar with, but unauthorized to speak with us on, Microsoft's plans helped us flesh out a picture of why The Coalition has been hit with a $500 million price tag, and why, ultimately, debates over "how" the money has been allocated are ultimately academic.

Indeed, I am told by a variety of trusted sources that The Coalition has been contributing to a variety of other Xbox flagship titles that use Unreal Engine, including games like Avowed and State of Decay.

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