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Former Xbox boss Don Mattrick once reportedly suggested Halo 4 should have a real-money auction house like Diablo 3 infamously did
Former Xbox boss Don Mattrick reportedly suggested that Halo 4 should feature a real-money auction house for in-game items, similar to Diablo 3's controversial experiment. This idea was met with internal disbelief by the development team, who recognized the potential negative impact on the game's reputation and completion status. Halo 4 ultimately launched without such a feature, and Mattrick departed Microsoft in 2013.
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.
It looks like Blizzard's escaped Xbox's grim reset scythe for now, though there's still time to be caught in the second 1600-strong layoff wave coming 2027
This article discusses potential future layoffs at Blizzard Entertainment, suggesting the company might avoid the immediate 'reset scythe' from Microsoft but could still face a significant wave of job cuts in 2027. The author notes the impact such news would have on employee morale.
Xbox Moves On From 4 Studios and Layoffs Off Thousands of Others
Xbox has announced significant restructuring, impacting over 1600 employees and planning for another 1600 over the next two fiscal years. Four studios—Double Fine Productions, Compulsion Games, Ninja Theory, and Undead Labs—will become independent or be acquired by new entities, retaining their intellectual property. Numerous other studios, including Zenimax Online, Id Software, Obsidian, and Bethesda Game Studios, are also undergoing substantial layoffs as Xbox refocuses on its major franchises like Call of Duty, The Elder Scrolls, Fallout, Halo, and Minecraft.
Report – Xbox cuts around 25% of Obsidian staff
Xbox has initiated significant layoffs across its studios, with Obsidian Entertainment reportedly losing around 25% of its staff, impacting producers, artists, designers, and more. This is part of Microsoft's larger plan to lay off 3,200 employees by June 2027, though Blizzard Entertainment teams have been spared for now. The restructuring aims to shift focus away from smaller acquired studios, but the arbitrary nature of the cuts is causing concern over lost expertise.
How XBOX Layoffs Impact Studios
Reports indicate that recent Xbox layoffs have affected several Microsoft studios, with Blizzard Entertainment's president reportedly sending an email to staff. The extent of the impact on these studios is still being assessed.
Xbox Layoffs’ Effects on Blizzard Have Been “Comparatively Minimal” – Rumor
Blizzard Entertainment president Johanna Faries addressed staff regarding Xbox's recent layoffs, stating the impact on Blizzard has been comparatively minimal. While further details will be shared, the company plans to focus on its major franchises like Diablo, StarCraft, and Warcraft, with potential cross-media adaptations and BlizzCon 2026 still planned. Xbox CEO Asha Sharma indicated that the layoffs are part of a broader reset due to failed bets and overextension, with approximately 3,200 job cuts planned for the fiscal year.
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.
"Game execs remain stupid detached money grubbing idiots": Former Xbox boss wanted Halo 4 to copy Diablo 3's horrible real-money auction house, dev says
A former Xbox executive, Don Mattrick, suggested that Halo 4 should implement a real-money auction house for in-game items, similar to Diablo 3's controversial feature. This suggestion was recalled by a recently laid-off Halo designer, Dan Callan, who criticized the detachment of executives from game development realities and the negative impact of such monetization strategies.
Diablo 4’s Massive Mythic Item Changes Aren’t Finding Many Fans
Diablo 4's recent overhaul of Mythic items in Season 14 has been met with significant player dissatisfaction. The changes, intended to expand endgame build options, have instead introduced excessive randomness, making powerful items harder to acquire and less reliable. Community feedback, including from Reddit and content creators, indicates frustration with the new system's RNG-heavy nature and misleading crafting mechanics.
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.
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.
World Of Warcraft Just Got A Sequel To Its Most Literally Viral Moment
A player-induced in-game plague, dubbed 'Corrupted Blood 2.0', recently spread through World of Warcraft's Moonguard server, originating from the Dragonflight dungeon Brackenhide Hollow. This event mirrors a similar, more severe incident from 2005. Blizzard Entertainment quickly resolved the recent outbreak with a hotfix within hours.
Bethesda Game Studios and ZeniMax hit hard by Xbox layoffs, says union
Microsoft's recent Xbox layoffs have significantly impacted Bethesda Game Studios and its parent company ZeniMax Media, with the Bethesda Game Workers Union reporting that many employees have been let go. Reports indicate that studios like id Software and ZeniMax Online Studios are also cutting a substantial number of staff. These reductions are part of a broader reorganization across various Microsoft gaming divisions to focus on higher priority projects.
Microsoft Xbox is shedding 3200 games industry workers, Blizzard and ZeniMax are affected
Microsoft's Xbox division is undergoing significant layoffs, cutting 3,200 jobs, which represents 20% of its workforce. Affected studios include Blizzard Entertainment and ZeniMax Media, with Ninja Theory, Undead Labs, Double Fine, and Compulsion Games being sold or divested. Xbox CEO Asha Sharma stated the business is not healthy and requires a reset, while acknowledging the unlikelihood of achieving a daily active user count of 1 billion.
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.
Overwatch escapes "Mostly Negative" Steam reviews 3 years after becoming the worst-rated game on Valve's store: "In 2026, we finally got back to just Overwatch"
Overwatch has seen its Steam review rating improve from "Mostly Negative" to "Mixed" after three years. This shift is attributed to a recent influx of positive player feedback, with some reviews praising new characters, battle pass value, and cosmetic offerings, despite ongoing criticisms regarding microtransactions and past disappointments.
Xbox are parting ways with Double Fine, Arkane, Undead Labs, Compulsion, and Ninja Theory in the course of thousands of layoffs
Microsoft 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."
