Activision Blizzard
Activision Blizzard business and news from across the web.
Xbox Game Pass subscriber numbers dropped by four million after price hikeXbox Game Pass has reportedly lost four million subscribers over the past two years, falling to 30 million. This decline is largely attributed to a significant price increase implemented last year for Xbox Game Pass Ultimate. Microsoft's initial goal was to reach 77 million subscribers by fiscal year 2027, a target that now appears unlikely to be met.
Rather than rip and tear id Software apart, Xbox should have put the FPS pioneers on Gears of WarFollowing significant layoffs at Xbox Game Studios, including a reported 50% staff reduction at id Software, the article argues that Xbox should leverage id Software's expertise for the Gears of War franchise. It suggests that id's talent for creating visceral first-person shooter experiences would be a better fit for Gears of War than continuing with their own struggling franchises like Quake Champions or Rage 2.
Bernie Sanders is mad about the Xbox layoffsUS Senator Bernie Sanders has criticized Microsoft and Xbox following recent layoffs, highlighting the company's significant profits and executive compensation. Sanders argued that corporate tax breaks do not create jobs and that the layoffs, coupled with a price increase for Xbox, demonstrate a flawed economic system. The article also references Sanders' past criticism of Bobby Kotick and the FTC's opposition to Microsoft's acquisition of Activision Blizzard.
Microsoft Spent $80 Billion On Its Bet For Xbox Game Pass. It Did Not Work.A report indicates Microsoft spent nearly $80 billion over the past decade on initiatives to boost Xbox and Xbox Game Pass, but these efforts did not meet growth expectations. Despite significant investments in acquisitions and third-party deals, Game Pass subscriber numbers have stagnated, leading to recent layoffs and studio divestitures as Microsoft aims to refocus its strategy.
"We simply spread ourselves too thin" – Xbox's Asha Sharma on firm's restructuring plansXbox CEO Asha Sharma detailed the company's restructuring plans, which include 3,200 layoffs and the divestment of five internal studios: Compulsion Games, Double Fine, Ninja Theory, Undead Labs, and Arkane Lyon. Sharma stated that Xbox "spread itself too thin" with various bets, leading to a weakening of its core business and a need to streamline management and refocus resources.
What exactly is going on with Marvel's Blade? Arkane Lyon's fate remains unclear in the wake of Xbox's controversial 'reset'Microsoft's Xbox division is undergoing significant layoffs and studio restructuring, impacting Arkane Lyon and its in-development game, Marvel's Blade. While the studio is in consultation due to French labor laws, reports suggest Blade is safe from cancellation despite being over-budget and internally delayed. Todd Howard of Bethesda Game Studios recently expressed positive impressions of the game.
Blizzard devs in the dark for now as president of the World of Warcraft and Diablo studio says they "can expect to hear more" soon about Microsoft's plan for the studio as Xbox faces 3,200 job cutsAmid significant layoffs impacting approximately 3,200 positions at Xbox, Blizzard Entertainment president Johanna Faries has communicated to staff that more details regarding the studio's future under Microsoft will be shared soon. While Blizzard's major franchises like World of Warcraft and Diablo appear largely untouched for now, the company is bracing for potential restructuring and changes in the coming months.
Xbox Game Pass subscription numbers are reportedly well below where Microsoft wants them to beXbox Game Pass subscriber numbers have reportedly fallen to 30 million, significantly below Microsoft's target of 77 million by 2026. This decline follows a substantial price increase for Game Pass Ultimate and a change in strategy regarding day-one releases for Call of Duty titles. New Xbox CEO Asha Sharma cited Game Pass growth troubles as a reason for recent job cuts within the Xbox division.
Evening Reading - July 6, 2026The video game industry is facing significant challenges, with Microsoft confirming mass layoffs that will lead to Double Fine Productions and Compulsion Games becoming independent. Xbox has appointed Helen Chiang, head of Mojang Studios, as its first Chief Operating Officer. Additionally, Nintendo plans to discontinue original Switch consoles in Europe in 2027, while Microsoft is being sued in Wisconsin over data center practices.
Xbox’s Game Pass Subscriptions Currently Hovering Around 30 Million – RumorA rumor suggests that Xbox Game Pass subscriptions are currently around 30 million, a figure lower than the 34 million reported in February 2024 and significantly below Microsoft's goal of 77 million by fiscal year 2027. Despite this, Xbox CEO Asha Sharma stated the service did not grow as expected but indicated continued investment in higher priority projects, including The Elder Scrolls and Fallout franchises.
The Gaming Industry Is Eating Itself AliveXbox is undergoing a massive restructuring, including 3,200 layoffs, impacting numerous studios and divisions like Activision, Bethesda, and Blizzard. While some studios regain independence and first-party projects remain safe for now, the article criticizes Xbox's overall strategy, citing Game Pass's performance and declining hardware revenue. The piece also touches on PlayStation's similar issues with digital ownership and preservation, painting a bleak picture for the future of gaming costs and ownership.
Report: The “majority” of ID software and up to half of Zenimax online have lost their jobsReports indicate significant layoffs across several Xbox-owned studios, including a majority of ID Software and up to half of ZeniMax Online Studios. These cuts affect teams working on titles like The Elder Scrolls Online, with roadmaps expected to shift. Other studios like Compulsion Games and Double Fine are reportedly going independent.
“Catastrophic Mismanagement” And AI Gambits Led To Mass Xbox Layoffs, Expert SaysAn expert attributes the recent mass layoffs at Microsoft, including 3,200 at Xbox, to "catastrophic mismanagement" by CEO Satya Nadella and the company's AI strategies. The article suggests that AI investments are not yielding sufficient returns, leading to cost-cutting measures that also involve divesting several development studios. Despite Microsoft's claims that AI is changing how work is done, the company's stock price has seen a decline.
CEO admits Xbox sees three to 10 times lower margins than "comparable platform and publishing businesses" after Game Pass and multiplatform bets didn't pay offXbox CEO Asha Sharma announced a major restructuring for Microsoft's gaming division, including 3,200 job cuts by fiscal year 2027, citing profit margins that are significantly lower than comparable businesses. Sharma admitted that bets on Game Pass and multiplatform releases did not grow as expected, leading to a weakening of the core business and necessitating a reset. Several studios are being spun off or sold as part of this strategic shift.- The $69 Billion Hangover: Every Xbox Layoff Since The Activision Blizzard MergerMicrosoft's acquisition of Activision Blizzard for $68.7 billion has been followed by significant layoffs and studio closures within its Xbox division. These cuts, described by Xbox CEO Asha Sharma as a "reset" due to an unhealthy business, have impacted thousands of employees and led to the cancellation of several game projects across various studios since January 2024.
Doom, Wolfenstein, and Quake will reportedly join Fallout and Elder Scrolls as Bethesda owner ZeniMax switches focus to its largest franchises amid Xbox restructureBethesda owner ZeniMax is reportedly restructuring to focus on its major franchises like Fallout, The Elder Scrolls, Doom, Wolfenstein, and Quake. This shift occurs amid a broader Xbox overhaul that includes layoffs and the sale of other studios. While new entries for Quake and Wolfenstein are implied, id Software and ZeniMax Online Studios are facing significant staff cuts.
Xbox Announces Biggest Restructure in Company History as Thousands of Jobs Are Cut | Invision Game CommunityXbox is undergoing its largest restructuring, involving approximately 3,200 job cuts and changes to its studio structure. Xbox President Asha Sharma stated the current business model is unsustainable due to increasing costs and slower-than-expected growth. Several studios like Compulsion Games and Double Fine Productions will become independent, while others like Ninja Theory and Undead Labs are expected to transition to new ownership.
Xbox acquisitions have been a disaster: "In a typical year, we lost 64 cents for every dollar we invested"Xbox CEO Asha Sharma revealed that Microsoft's aggressive acquisition strategy has resulted in significant financial losses, with the company losing 64 cents for every dollar invested in typical years since 2018. In response to this unsustainable model, Xbox is undergoing a reset, leading to layoffs and the divestment of several studios, including Compulsion Games, Double Fine, Ninja Theory, and Undead Labs, while others like Arkane Studios are reviewing strategic options.
Xbox cuts 3,200 staff as four studios to exit Microsoft – Arkane under reviewMicrosoft has announced significant layoffs affecting approximately 3,200 employees within its Xbox division, with 1,600 staff being let go immediately. Four studios, including Ninja Theory and Undead Labs, are becoming independent or being sold off, while Arkane Lyon's future is under review. This restructuring follows a period of rapid developer acquisitions and aims to refocus Xbox's business strategy.
Xbox are parting ways with Double Fine, Arkane, Undead Labs, Compulsion, and Ninja Theory in the course of thousands of layoffsMicrosoft has announced significant layoffs affecting 3200 employees and is parting ways with five Xbox-owned studios: Double Fine, Arkane, Undead Labs, Compulsion Games, and Ninja Theory. Some studios will become independent or find new ownership, while Arkane's future is uncertain. CEO Asha Sharma cited rising costs, underperforming acquisitions, and a challenging industry landscape as reasons for the "reset."