Microsoft Studios is growing.

At E3 it was revealed that five new creative teams are being added as Microsoft has acquired developers Playground Games, Ninja Theory, Undead Labs and Compulsion Games.

U.K.-based Playground Games has worked on the Forza franchise since 2010.

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Ninja Theory has created such games as Kung Fu Chaos, Heavenly Sword and Disney Infinity 3.0.

Based in Seattle. Undead Labs are the creators of State of Decay.

Compulsion Games is a Canadian studio who have developed Contrast and We Happy Few.

Microsoft also announced they have formed a new studio called The Initiative. It will be headed by Darrell Gallagher and based in Santa Monica, Calif. Gallagher was formerly the head of Crystal Dynamics and worked at Activision as senior vice president as well as Rockstar Games, Sony, and THQ.

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