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Xbox CEO Says “We Simply Spread Ourselves Too Thin” Following Layoffs
Xbox CEO Asha Sharma stated that the division "spread ourselves too thin" by making numerous unsuccessful bets, leading to recent layoffs affecting approximately 1,600 employees. As part of a restructuring, four studios are being let go, with Compulsion Games and Double Fine Productions becoming independent, and Undead Labs and Ninja Theory being sold. Sharma also confirmed further job cuts are planned and announced organizational changes, including a new COO, Helen Chiang.
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.
Tony Hawk’s Pro Skater 1 + 2, The Planet Crafter, and More Coming to Game Pass in July
Microsoft has announced the first wave of games coming to Game Pass in July, including Tony Hawk's Pro Skater 1 + 2 and The Planet Crafter. The service will also see additions like Winds of Arcana: Ruination, Gears of War: Reloaded, and PBA Pro Bowling 2026. Several titles, including EA Sports FC 24 and PowerWash Simulator, will be leaving the service on July 15th.
Obsidian was also hit by "the Microsoft sacrificial rituals," says laid-off RPG veteran who previously worked…
Obsidian Entertainment has reportedly been affected by recent Xbox layoffs, with narrative designer Jay Turner and other developers confirming their departure. These cuts are part of a larger "reset" by Microsoft, which aims to reduce its workforce by 3,200 by fiscal year 2027. Reports suggest around 25% of Obsidian's staff, approximately 60-70 individuals, were impacted.
Microsoft's dumb enough to make a new Quake game in Unreal Engine
Microsoft's Xbox division has announced significant layoffs impacting id Software, raising concerns about the future of the Quake franchise. The author speculates that Microsoft might develop a new Quake game using Unreal Engine 6 instead of id Software's proprietary idTech, potentially alienating long-time fans and disregarding the studio's legacy.
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.
Epic Games settles lawsuit against former contractor accused of leaking unannounced Fortnite collaborations
Epic Games has settled a lawsuit against a former contractor, Hayden Cohen, accused of leaking confidential information about unannounced Fortnite collaborations, including those with Minecraft and Game of Thrones. The settlement prohibits Cohen from possessing, using, or disclosing any of Epic's confidential or trade secret information. This action follows similar legal pursuits by other major game companies against prolific leakers.
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.
Bethesda union blasts Microsoft as Xbox layoffs hit the Fallout and Elder Scrolls studio, too: "When will this cycle of cuts in pursuit of ever-greater profits end?"
Microsoft has initiated significant layoffs across its Xbox division, impacting Bethesda Game Studios and other developers. The Bethesda Game Studios Union expressed frustration over the recurring cuts, highlighting the impact on long-term employees and calling for an end to profit-driven redundancies. Xbox CEO Asha Sharma cited weak operating margins and underperforming investments as reasons for the restructuring, which includes potential strategic shifts for studios like Arkane.
"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.
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.
Even Obsidian couldn't escape the Xbox cuts, with losses ranging from a 21-year veteran artist to an engineer…
Obsidian Entertainment has experienced layoffs, affecting employees including a 21-year veteran artist and a recent engineer. This marks the first time the studio has been impacted by the recent waves of job cuts at Microsoft's Xbox division. The exact number of affected employees is between nine and 49, falling below the threshold that would trigger a WARN Act notice.
Xbox CEO Reflects On Massive Cuts: “We Simply Spread Ourselves Too Thin”
Xbox CEO Asha Sharma stated that the company spread itself too thin with various new ventures, leading to a lack of focus on the core business and resulting in significant layoffs and studio restructuring. Sharma indicated that the Xbox business is not currently healthy, necessitating these changes to address hardware challenges and accelerate necessary adjustments.
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.
Microsoft's layoffs extend beyond Xbox
Microsoft is implementing additional layoffs, cutting 3,200 jobs across its divisions, extending beyond its gaming branch, Xbox. This news follows previous job reductions within the company.
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.
Arkane founder asks Xbox CEO "how much" Microsoft wants for the studio: "I'm asking for a…
Original Arkane Studios founder Raphael Colantonio inquired about the potential sale price of the studio amidst Xbox's cost-cutting measures and planned divestments. Microsoft is reportedly exploring strategic options for Arkane, which could lead to its separation from Xbox, similar to other studios like Ninja Theory and Double Fine. Colantonio, who left Arkane in 2017 to form WolfeEye Studios, has previously been critical of Xbox's strategy and decisions, including the closure of Arkane Austin.
Here’s What’s Going On With Marvel’s Blade And Its Developer Amid Xbox “Reset”
Amidst Microsoft's business 'reset' involving layoffs and studio sales, the future of Arkane Lyon and its game Marvel's Blade is uncertain. The French studio is undergoing consultation, with potential outcomes ranging from sale to closure, impacting the development of the delayed and reportedly over-budget Blade game, which was announced in 2023 without gameplay footage.
Undead Labs Reportedly Won't Be Required to Bring State of Decay 3 to Xbox Game Pass After Microsoft Sale
Undead Labs may not be required to launch State of Decay 3 on Xbox Game Pass following its acquisition by Microsoft. The studio is continuing development on the zombie survival sequel.