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Doom creator John Romero praises the devs who carried on id Software's legacy as Microsoft reportedly lays off half of the studio: "The last few games showed real care, skill, and respect"
Doom co-creator John Romero has expressed his sympathy for id Software employees affected by recent layoffs, which reportedly cut the studio in half. Microsoft's Xbox division is undergoing a significant restructure, impacting ZeniMax Studios and its subsidiaries, including id Software, Bethesda Game Studios, and Arkane Studios. Despite reports of Bethesda focusing on its strongest franchises like Doom, Quake, and Wolfenstein, the extensive layoffs at id Software, particularly among coders working on the id Tech engine, raise concerns about the future of these series.
Xbox has lost five studios – so who is left to make new video games?
Xbox has undergone significant layoffs, impacting approximately 3,200 staff members and leading to five studios divesting from the company. Xbox leadership aims to refocus on core franchises and expand its daily audience to over a billion people through its services. The article details the remaining studios, their current projects, and their future prospects under this new strategy.
"We simply spread ourselves too thin" – Xbox's Asha Sharma on firm's restructuring plans
Xbox 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.
Nobody Plays New Games Anymore: The 2026 Playtime Data | TAG
Recent data from Valve's Steam Replay and Newzoo reports indicate that new game releases consistently capture only 14-17% of player playtime on PC, with older titles dominating the remaining hours. This trend holds true across platforms, with Xbox showing the highest engagement for new releases at 18%. The analysis suggests this is due to factors like the prevalence of live service games, adult time constraints, and the value proposition of established back-catalog titles, rather than a decline in player interest.
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 cuts
Amid 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 be
Xbox 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.
Bethesda boss says the company must focus on its "strongest franchises" as Xbox layoffs reportedly hit The Elder Scrolls and Fallout makers hard
Following significant layoffs impacting Bethesda Game Studios and id Software, Bethesda president Jill Braff has informed staff of a strategic shift to concentrate on the company's strongest franchises, including The Elder Scrolls, Fallout, Doom, and Quake. This move aims to ensure a more stable business foundation and sustainable growth for future investments in its intellectual properties.
Ex-Xbox dev slams game execs as ‘money grubbing idiots’ in quote of the year
A former Bungie and 343 Industries developer, Dan Callen, has criticized game executives, calling them 'stupid detached money grubbing idiots.' Callen shared an anecdote about former Xbox executive Don Mattrick suggesting Halo 4 should implement a real money auction house for mech skins, a concept that had previously failed in Diablo 3. This criticism comes amid recent layoffs at Sony and Microsoft, highlighting ongoing issues within the games industry.
Evening Reading - July 6, 2026
The 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 – Rumor
A 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 Alive
Xbox 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.
The games industry reacts to Xbox layoffs: 'We are clearly at a turning point'
Microsoft's Xbox division has announced significant layoffs, impacting approximately 3,200 employees and leading to the closure or restructuring of four game studios. This move has drawn widespread reactions from industry figures, expressing shock, sorrow, and anger, with many calling it a turning point for the game industry. The layoffs occur amidst Microsoft's continued investment in artificial intelligence, a decision that has drawn criticism for its perceived prioritization over game development talent.
Report: The “majority” of ID software and up to half of Zenimax online have lost their jobs
Reports 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.
Xbox Layoffs 2026: What Microsoft's Reset Means for Average Gamers
Microsoft's Xbox division has undergone a massive restructuring, cutting approximately 3,200 jobs in fiscal year 2027 and shuttering or spinning off five studios, including Ninja Theory and Arkane Lyon. This move comes despite Microsoft's overall profitability, with Xbox reportedly struggling with low profit margins and a failed attempt to achieve a 30% accountability margin. The article analyzes the business decisions, including Game Pass accounting and price hikes, that led to these layoffs and discusses the implications for gamers, including potential changes to hardware strategy and game exclusivity.
“Catastrophic Mismanagement” And AI Gambits Led To Mass Xbox Layoffs, Expert Says
An 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 off
Xbox 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 Merger
Microsoft'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 restructure
Bethesda 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 Community
Xbox 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.
