Microsoft Black Tusk, its Vancouver-based studio, is working on the platform holder's next big entertainment franchise, reports The Vancouver Sun.
It's hoped the new franchise will be a success on the scale of Halo.
"Big games, big teams, big budgets, long timelines," said studio boss Michael Crump.
"What that means is we are working on Microsoft's next big entertainment franchise," he said. "We're not working on an existing franchise, we're looking to build the next Halo here in Vancouver, for example, which is really exciting. We are building something from the ground up."
The studio is formed of staff with an average of 12 years experience in triple-A development.
Superannuation says the new franchise is "some big new IP space shooter thing on the scale of a Gears or Halo. Lead designer of Crysis 2 is working on it".
It's safe to assume the new franchise is being created for the next generation Xbox, but will Microsoft have it ready to launch with the next platform? The Vancouver studio was formed in 2010, but its first project - Microsoft Flight - wasn't released until early in 2012.
Source: Vancouver Sun