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Xbox Revenue Fell by 10 Percent in Last Quarter
Microsoft's Xbox division experienced a 10 percent revenue decrease last quarter, coinciding with significant layoffs across the division. While overall Microsoft revenue increased by 18 percent due to cloud services like Azure, the Xbox content and services segment, along with the Windows OEM and Devices division, saw declines. As part of restructuring, Xbox divested four studios: Compulsion Games, Double Fine Productions, Undead Labs, and Ninja Theory.
“Necessary Decisions” Are Being Made to Reset Xbox for Long-Term Growth, Says Microsoft CEO
Microsoft CEO Satya Nadella stated that "necessary decisions" are being made to reset Xbox for long-term growth, citing a 10 percent revenue decline in the last quarter. The company plans to diversify its business across subscriptions, ads, and digital stores, and expand to new ecosystems. This strategy follows recent layoffs and the divestment of four studios: Compulsion Games, Double Fine Productions, Ninja Theory, and Undead Labs.
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.
Double Fine Announces Layoffs For 23 Employees Following Xbox Split
Double Fine Productions, developer of Psychonauts, has laid off 23 employees following its separation from Xbox. Studio founder Tim Schafer stated the move was necessary for the studio's sustainability as an independent company. Xbox confirmed the return of intellectual property and runway for future games to Double Fine and other divested studios like Compulsion Games, Ninja Theory, and Undead Labs.
Fallout 3 and New Vegas Remasters are a good start, but before Fallout 5 Bethesda could be doing so much more
The announcement of Fallout 3 and New Vegas remasters highlights the long neglect of the Fallout series, with Fallout 5 not expected for many years. While new content for Fallout 76 and a potential Obsidian project are on the horizon, the article argues that Xbox and Bethesda could leverage other studios within their ecosystem to develop more Fallout titles and better manage the franchise's potential.
Another former Xbox studio is "independently owned, again" after Microsoft shut it down in 2024
Alpha Dog Games, a studio previously shut down by Microsoft in 2024, has reemerged as an independently owned entity. Studio founder Shawn Woods updated his LinkedIn profile to reflect the change, indicating the studio regained independence in May 2025. This follows a trend of studios becoming independent after Microsoft's recent closures and layoffs.
Is Game Pass Still the Right Strategy for Xbox?
This article analyzes the current state and future strategy of Xbox Game Pass, questioning its sustainability and impact on game value. Despite initial excitement and acquisitions to bolster its library, internal sentiment appears negative, with reports of studios detesting the service and subscriber growth falling short of projections. While Game Pass remains a key, albeit paradoxical, component of Xbox's offerings, its future is uncertain amidst internal challenges and a need for renewed growth.
Compulsion Games seeks new partnerships following spin-out from from Xbox
Compulsion Games has announced its return to independent development after being spun out from Xbox. The studio, known for South of Midnight, is now seeking new partnerships to leverage its team's talent and creativity. Compulsion Games retains the rights to its previous titles, including Contrast, We Happy Few, and South of Midnight.
Following Xbox split, South of Midnight devs Compulsion are looking for work as a co-development or support studio
Following layoffs from Xbox, Compulsion Games, the studio behind South of Midnight and We Happy Few, is now operating as an independent developer. The company is actively seeking co-development or support roles with other studios to secure funding and leverage its team's talent while working on its next original game.
South of Midnight Developer is Looking for Studios to Collaborate With
Compulsion Games, now an independent studio after being released from Xbox, is seeking collaboration partners for its next project. The studio, which developed the BAFTA and Peabody Award-winning game South of Midnight, aims to leverage its talent and expertise while securing funding. This announcement follows recent layoffs at Xbox and the independent transitions of other former Xbox studios like Undead Labs, Double Fine Productions, and Ninja Theory.
The Elder Scrolls 6 Is Looking More Troubled Than Ever
Recent layoffs at Xbox-owned studios, including Bethesda Game Studios, are raising concerns about the development of The Elder Scrolls 6. The article suggests that the removal of experienced personnel and reliance on contractors could lead to further delays and negatively impact the game's quality. This situation is viewed as a "spreadsheet decision" by Xbox, prioritizing cost-cutting over the franchise's long-term success.
Microsoft Refutes Notion That Foreign-Worker Visas Were Behind Mass Xbox Layoffs
Microsoft communications lead Frank X. Shaw refuted claims that foreign-worker visas were the cause of recent mass layoffs affecting 1,600 people at Xbox. Shaw stated the workforce changes were due to a necessary business restructure, not to replace employees with foreign workers, and that H-1B visa holders represent a small percentage of the overall workforce and were not specific to Xbox.
Summary: what's happening at Xbox?
Xbox announced a major restructuring involving 3,200 job cuts, with 1,600 immediate layoffs, primarily affecting ZeniMax studios like Bethesda and id Software. Several studios, including Compulsion Games, Double Fine, Ninja Theory, and Undead Labs, are being sold off or spun out as independent entities. This move aims to refocus on high-earning franchises and improve profit margins, impacting the development of upcoming titles like The Elder Scrolls 6 and potentially State of Decay 3.
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.
Xbox needs to make a choice, says former PlayStation leader Shawn Layden: be a publisher or a platform, but you can't be both
Former PlayStation leader Shawn Layden argues that Xbox must choose between being a major game publisher or a platform holder, stating it cannot effectively be both. He highlights the need for exclusive content to support a platform, contrasting it with the multiplatform approach required for a top publisher, a dilemma exacerbated by recent Xbox layoffs and strategic shifts.
Can a top-down, focused software strategy save Xbox? | Opinion
Xbox has undergone significant layoffs and studio closures, impacting 20% of its workforce and five internal studios, including Compulsion Games and Double Fine. This strategic shift, led by Asha Sharma, aims to address financial issues and improve first-party development, though the article questions the effectiveness of these measures and criticizes the company's past spending and treatment of developers.
Own goal specialist Xbox rifles another into the roof of the net - Patch Notes #60
Xbox announced significant layoffs, impacting approximately 3,200 employees across various studios including id Software, ZeniMax Online Studios, Double Fine, Compulsion Games, Ninja Theory, and Undead Labs. Xbox boss Asha Sharma cited a need to eliminate management layers and create a flatter organization, though many of the affected employees are senior staff integral to game production. This marks the fifth major round of layoffs at Xbox in three years, with unions like CWA Canada criticizing Microsoft's handling of the situation.
Asha Sharma joins Federal Reserve advisory task force days after laying off thousands at Xbox
Xbox CEO Asha Sharma has been appointed to a new US Federal Reserve task force focused on productivity and jobs, specifically examining the economic impact of artificial intelligence. This appointment follows Xbox's announcement of significant layoffs affecting thousands of employees and several game studios, including Double Fine and Ninja Theory.
Report: Obsidian to work on Fallout title as unannounced projects cancelled
Obsidian Entertainment is reportedly developing a new Fallout game, led by Fallout: New Vegas director Josh Sawyer, as part of a wider Xbox restructuring that has led to the cancellation of several unannounced projects and layoffs. A small team will continue work on an Avowed sequel, while others focus on DLC for The Outer Worlds 2 and Grounded 2. This news follows a significant increase in Fallout game sales after the premiere of the Prime Video adaptation.
17 years later, Minecraft is finally adding somewhere to sit
Minecraft is introducing craftable cushions and new straw beds in its latest preview build, allowing players new ways to rest. These additions come as Mojang, an Xbox-owned studio, is impacted by significant layoffs affecting numerous gaming companies.
