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'These are hard, but necessary decisions' — Xbox pulled funding for Io Interactive's 'Project Fantasy' but the developer will continue working on the game independently
IO Interactive has regained full ownership of its online fantasy RPG, Project Fantasy, after Xbox withdrew its funding. The developer will continue to fund and develop the game independently, but will close its Istanbul studio and lay off an unconfirmed number of employees. This decision comes amidst broader restructuring and layoffs at Microsoft.
John Romero has a private collection of "critically important" id Software history "including materials and assets that, as far as I know, id itself no longer has"
Following major layoffs at id Software under Microsoft's Xbox division, co-founder John Romero highlighted the critical importance of preserving the studio's history. Romero revealed he has personally archived significant early materials from id Software that the company may no longer possess. The article also touches on the impact of the layoffs on id Software's development teams and the broader discussion of game preservation.
Doom dev id Software loses half its staff and all its coders in Xbox bloodbath
id Software, the studio behind the Doom franchise, has reportedly lost approximately half of its staff, including most of its coders, in recent Xbox layoffs. This significant reduction in workforce has led to concerns about the studio's ability to continue developing its proprietary technology and future titles. Co-founder John Romero expressed concern for the preservation of id Software's legacy amidst these drastic cuts.
Bethesda Tells Workers The Company Needs To “Change Course” And Focus On Games With “Greatest Potential”
Bethesda is undergoing a significant shift in strategy following recent layoffs at Microsoft's Xbox division. Company boss Jill Braff informed staff that Bethesda must 'change course' and focus on franchises with the 'greatest potential,' including The Elder Scrolls and Fallout, to ensure sustainable growth and continued investment in its games and players.
IO Interactive Closing Studio; Self-publishing Project Fantasy
IO Interactive has announced it is closing its studio and will self-publish its upcoming online RPG, Project Fantasy. This follows Microsoft's decision to end its partnership with the studio on the project, which was initially revealed in 2023.
Out of the Blue
The author expresses shock at the recent layoffs initiated by Microsoft within the gaming division. Despite prior warnings, the scale of the job cuts was more dramatic than anticipated, impacting the broader gaming industry.
If you're a sicko, you can now run Windows on the Steam Machine
Valve has released official Windows 11 drivers for the Steam Machine, enabling full hardware support for Microsoft's operating system on the device. While this allows users to install Windows 11 and gain wider compatibility with PC storefronts and services like Xbox Game Pass, it requires wiping the existing SteamOS. The release is seen as a potential precursor to dual-booting functionality, which could make the Steam Machine a more competitive console-like PC hybrid.
State Of Decay 3 Might Not Come To Xbox Game Pass, After Being Promised Last Month
State of Decay 3, previously confirmed for Xbox Game Pass, may not launch on the subscription service due to the terms of its developer's acquisition. The deal between Microsoft and the unknown buyer reportedly lacks any Xbox-controlling clauses, contradicting earlier announcements. This news follows significant layoffs at Xbox and the sale of studios like Undead Labs and Ninja Theory.
Xbox Layoffs Included 37-Year Veteran Who Designed One Of Xbox’s Best Features Ever
Microsoft's recent layoffs at Xbox have impacted 1,600 employees, including 37-year veteran Kevin LaChapelle, who was instrumental in developing the popular backwards compatibility feature for Xbox consoles. The company is also divesting several studios as part of a broader restructuring, with some strategic bets like Xbox Game Pass not meeting expectations.
"There's really no one left": Former Elder Scrolls Online dev says the MMO "basically funded other failing projects" as Microsoft guts the studio
A former senior content designer for The Elder Scrolls Online, Andrew Young, expressed anger over recent layoffs impacting up to half of the studio's developers. He stated that the MMO "basically funded other failing projects" while struggling with its own resource allocation. The article also mentions the closure of mobile spin-offs like The Elder Scrolls: Blades and The Elder Scrolls: Legends, and notes that Microsoft's Xbox division is undergoing significant cuts expected to total 3,200 jobs.
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.
State of Decay 3 could reportedly skip Xbox Game Pass after Microsoft dumped its studio
Following Microsoft's significant restructure and layoffs, Undead Labs, the developer of State of Decay 3, is reportedly moving to a new management structure or becoming independent. This change could mean that State of Decay 3 will not be required to launch on Xbox Game Pass, despite its recent gameplay reveal and 2027 release window.
Game Pass Levels Up Again With Gears Reloaded, Palworld 1.0 And More
Xbox Game Pass is adding several new titles in July, including the full release of Palworld 1.0 and the definitive remaster of Gears of War: Reloaded. Subscribers can also look forward to Winds of Arcana: Ruination and Tamashika. These additions span various genres and platforms, including PC, Xbox Series X|S, and cloud gaming.
Obsidian Hit Hard By Xbox Layoffs, With 25% Of Devs Cut From Studio
Obsidian Entertainment has been significantly impacted by recent Xbox layoffs, with approximately 25% of its workforce, around 60-70 employees, being let go. The cuts affected various roles, including senior talent, art directors, and recruiters. Despite the reductions, work is expected to continue on Grounded 2 and planned DLC for The Outer Worlds 2.
"I know how devastating it is, and my heart's with all of you": Doom's John Romero responds to id Software reportedly losing half their team
Microsoft's Xbox division is reportedly laying off approximately half of the staff at id Software, with a significant impact on the studio's technology team. Former id Software co-founder John Romero has responded to the news, expressing sorrow for those affected and emphasizing the importance of preserving the studio's historical code and assets.
IO Interactive says Project Fantasy isn't dead, but confirms that layoffs are happening
IO Interactive has confirmed layoffs and the closure of its Istanbul studio following the loss of external funding for its online fantasy RPG, Project Fantasy. The studio has regained full ownership of the project and plans to continue developing it independently, shifting focus back to its core internal titles. This news comes after the successful launch of 007 First Light, despite uncertainty regarding future James Bond game development.
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 CEO amidst layoffs: 'I think our core has to be healthy'
Xbox CEO Asha Sharma addressed significant layoffs and a major restructure within the company, stating the core business needs to be healthy. She highlighted the need for new business models, including exploring hardware options like 'buy now, pay later' and expanding availability on mobile and PC. Sharma also noted that Xbox's operating margins are considerably lower than comparable businesses, attributing challenges to surging component costs and overextending studio systems.
Xbox setting Compulsion and Double Fine free is the only good thing to come out of Microsoft's layoffs
Microsoft's recent layoffs, affecting thousands of employees, have led to Xbox allowing Compulsion Games and Double Fine Productions to become independent. While the mass job losses are devastating, this move is seen as a positive step for fostering innovation in the indie game space, freeing these studios from the constraints of triple-A development.
Xbox Game Pass reportedly boasts around 30m subscribers
Xbox Game Pass reportedly has around 30 million subscribers, a figure below Microsoft's 2026 projection of 77 million users. New CEO Asha Sharma acknowledged that while the service and multi-platform strategy have provided value, growth has not met expectations, leading to recent staff cuts and a strategic reset for Xbox. The service has seen fluctuations in subscriber numbers previously, with a price increase in 2025 followed by a reduction that reportedly improved acquisition and retention.
