Upcoming games in the series will be developed by Black Tusk Studios in Vancouver.
Former Epic Games director Rod Fergusson has joined Microsoft to oversee development of the franchise, and will "play a key studio leadership role at Black Tusk" going forward.
In addition to future releases, the deal sees Microsoft gain the rights to all existing games, as well as entertainment experiences and merchandise.
Explaining Microsoft's decision to pick up the rights, studio head Phil Spencer said that Gears of War was part of the soul of Xbox.
"This franchise, and these fans, are part of the soul of Xbox," Spencer explained.
"By acquiring this franchise, Microsoft Studios will continue to offer them more of their favorite games and entertainment experiences from the Gears of War universe."
What to Read Next
Congratulations to @XboxP3 @GearsViking and all our friends at Microsoft - they'll take good care of @GearsofWar and we're excited for them!
ā Mark Rein (@MarkRein) January 27, 2014
Black Tusk studio general manager Hanno Lemke said that the team hopes to unveil a new entry in the third-person shooter franchise later this year, before praising Epic Games and Rod Fergusson.
"Epic remains great partners and good friends of Microsoft Studios," Lemke continued.
"In fact we will collaborate closely with Epic to ensure the inclusion of the Unreal Engine technology into the Gears of War franchise going forward remains consistent with the high quality fans have come to expect from the franchise."
Lemke said that the addition of Rod Fergusson, who worked on the original Gears of War trilogy, is exciting for the fans.
Fergusson himself described his involvement with the franchise as a homecoming.
"I'm extremely excited to be joining Black Tusk Studios to oversee development on the Gears of War franchise," said Fergusson.
"I've been privileged to work on a lot of great games with a lot of great teams, but Gears has had the most impact on me professionally and personally, so this really feels like a homecoming.
"I can't wait to share more with you all soon."
Microsoft previously said that Gears of War needs to be reimagined for the Xbox One, admitting that the franchise "did kind of run its course" on the Xbox 360.
Watch a trailer for Gears of War: Judgement below:
