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Xbox Layoffs: 268 Employees Affected in Latest Restructuring — Too Much Gaming | Video Games Reviews, News, & Guides
Xbox has undergone significant restructuring, impacting 268 employees. While studios like Compulsion Games, Double Fine Productions, and Undead Labs are safe and continuing work on titles like State of Decay 3, Ninja Theory and Arkane Lyon face potential closure. The article suggests Microsoft grew too quickly and its investment in Xbox Game Pass is now contributing to these cutbacks.
All The Major Xbox Changes Microsoft Announced Today: Layoffs, Halo Goes To Activision, And Lots More
Microsoft announced significant restructuring within its Xbox division, including 268 layoffs affecting various first-party studios like Halo Studios. Activision will now develop the next Halo game, while Bethesda expands to oversee Obsidian Entertainment. Several studios face potential closure or consolidation, such as Ninja Theory and the merging of Playground Games and Turn 10 Studios.
Xbox’s Second Wave Of Planned Layoffs Is Reportedly Starting As Studios Face Major Restructuring
Xbox is reportedly initiating a second wave of layoffs, affecting approximately 1,600 employees, as part of a major restructuring of its gaming division. This initiative, led by Xbox boss Asha Sharma, aims to make the division more profitable and involves consolidating studios and potentially moving franchises like Halo to Activision Blizzard. Several first-party studios have also recently become independent or been sold off.
Second wave of Xbox cuts reported to be happening this week, with "several" studios apparently facing consolidation
Microsoft's Xbox division is reportedly planning a second wave of layoffs this week, potentially affecting hundreds of employees and consolidating several studios. This follows a major restructuring in July and is part of Xbox CEO Asha Sharma's plan to return the gaming division to profitability by focusing on major franchises. The news has reportedly lowered morale among staff.
Xbox reportedly set to announce second round of layoffs this week
Xbox is reportedly preparing for a second round of layoffs this week as part of an ongoing restructuring that includes consolidating several of its game studios. This follows an earlier round of 1,600 redundancies and the divestment of five studios. Xbox CEO Asha Sharma cited spreading resources too thin and fragmentation as reasons for the changes, aiming for future growth.
Dishonored's Harvey Smith named his new studio Black Pony Immersive so people would stop asking him to work on other genres: 'Specialising on what you love is not a bad path'
Dishonored director Harvey Smith has launched a new studio, Black Pony Immersive, with fellow Arkane alumnus Ben Horne. The studio's name explicitly signals its focus on immersive sims, a genre Smith believes in specializing in to avoid the pitfalls of projects like Redfall, which he feels Arkane should not have worked on. Smith aims to leverage his reputation in the genre to build a successful independent studio.
Thief designer thinks the graphics arms race should have ended with 2010's Alan Wake: 'The fidelity curve has…
Thief designer Randy Smith Evergreen believes the graphics arms race in video games should have concluded with 2010's Alan Wake, arguing that current fidelity levels are excessive and serve little practical purpose. He suggests that games like Alan Wake achieved sufficient photorealism, and further advancements are costly without significantly enhancing the player experience, particularly for immersive sims.
The people of video games on what gives them cause for hope
Industry professionals share their reasons for optimism despite current challenges, highlighting the resilience of game developers, the innovation within the indie scene, the growing cultural impact of games, and the enduring passion of players. They emphasize community support, creative freedom, and the potential for new ideas to emerge from difficult times, suggesting a bright future for the medium.
Compulsion Games becomes publisher of South of Midnight on Steam, suggesting departure from Xbox amid major restructuring is now complete
Compulsion Games is now listed as the publisher of South of Midnight on Steam, indicating its complete separation from Xbox following recent restructuring. The studio, which also regained rights to its previous titles Contrast and We Happy Few, is now operating as an independent entity. South of Midnight, released in spring 2025, received praise for its visuals and music integration but was criticized for shallow gameplay.
Xbox leadership's words are drowned out by their actions
Despite assurances from Xbox leadership, the company's actions, including mass layoffs and studio closures, paint a grim picture for its talent and future projects. While executives like Asha Sharma mention upcoming games like The Elder Scrolls 6, these words are seen as empty promises contrasting with the reality of job cuts at studios like id Software and Bethesda.
Double Fine Productions suffers layoffs weeks after going independent
Double Fine Productions has laid off 23 employees, nearly 25% of its workforce, just weeks after becoming an independent studio following its separation from Xbox. The studio stated the layoffs were necessary for its survival and to adjust to its new size as an independent entity. This follows Xbox's broader restructuring efforts which have also impacted other studios.
Xbox After The Layoffs: Studios Left And What They’re Making
Xbox has undergone significant restructuring, including layoffs and the divestment of five studios, as it aims to increase profitability and focus on major intellectual properties. This shake-up impacts numerous development teams and projects across Xbox Game Studios, Activision, Blizzard, and Bethesda, with a renewed focus on core franchises and a shift in business strategies like the exclusion of Call of Duty from Xbox Game Pass day-one launches.
Rather than rip and tear id Software apart, Xbox should have put the FPS pioneers on Gears of War
Following 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.
There Is No Reason To Buy Another PlayStation Or Xbox
The author argues that upcoming PlayStation and Xbox consoles will be too expensive and lack compelling reasons to purchase, especially with the shift to digital-only distribution. Concerns are raised about the impact on the used games market, accessibility for players with poor internet, and the overall viability of the console market as attention shifts to mobile and other forms of entertainment.
Xbox’s New Plan After Brutal Cuts: Focus On The Thing Called Xbox
Following significant layoffs, Xbox is refocusing its strategy on its core business, including its flagship console hardware and major IPs like Minecraft. This shift aims to address issues like spreading resources too thin and declining hardware revenue, despite industry-wide cost increases and component shortages. The restructuring also involves making some studios independent or selling them off.
Xbox retreats again – but to where? | Opinion
Xbox CEO Asha Sharma announced significant layoffs affecting thousands of employees across various studios as part of a company 'reset' to focus on profitable franchises. This move raises questions about the future of Xbox's first-party strategy, its Game Pass subscription service, and the upcoming console generation, particularly given the high cost of components and the blurring lines between PC and console gaming.
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.
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.
While several Xbox studios regained independence or found new owners yesterday, Arkane's staff must negotiate their own future
Xbox has announced significant restructuring, spinning off five studios and implementing widespread layoffs. While some studios regain independence or find new owners, the fate of Arkane Studios, specifically Arkane Lyon in France, remains undecided as negotiations involving Microsoft, studio management, and employee representatives are ongoing. This situation highlights differing labor law protections between France and the US, with Arkane Lyon's future potentially involving sale, management buyout, or closure.
