Undead Labs
Undead Labs business and news from across the web.
Latest coverage
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.
State of Decay 3 may no longer launch into Game Pass, now that Microsoft is letting developer Undead Labs go
State of Decay 3 may no longer launch day one on Game Pass following Microsoft's sale of developer Undead Labs. While Microsoft will continue to fund the game's development until its 2027 release on PC and consoles, the sale agreement frees the studio from "Xbox-controlling terms." The new owner of Undead Labs, to be revealed this summer, will decide the game's distribution, potentially requiring a new deal with Xbox for a Game Pass launch.
Latest Xbox layoffs hit id Software as Doom: The Dark Ages' DLC launches, around half of the staff potentially cut
Xbox is implementing significant layoffs, impacting id Software heavily just as its new DLC for Doom: The Dark Ages is set to launch. Reports suggest around half of id Software's staff, potentially including most coders, may have been cut. This follows broader workforce reductions across ZeniMax studios and other Xbox-owned entities, raising concerns about the future of the id Tech engine and the studio's development capabilities.
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.
Zenimax omorganiseras för att fokusera på sina stora varumärken
ZeniMax Media is undergoing a significant restructuring to concentrate on its major franchises like The Elder Scrolls, Fallout, Wolfenstein, Doom, and Quake. This reorganization follows recent layoffs at Xbox and involves some studios becoming independent or being sold, though ZeniMax itself retains its studios.
Xbox to cut 3200 jobs in the new financial year
Microsoft's Xbox division is undergoing its most significant restructure in history, with approximately 3,200 jobs being cut over the next fiscal year, including 1,600 immediately. Five game development studios are also departing, with Double Fine and Compulsion Games becoming independent, while Ninja Theory, Undead Labs, and Arkane Studios are in various stages of negotiation or consultation for new ownership. Xbox CEO Asha Sharma cited unhealthy business margins and a strategic shift towards AI investment as reasons for the cuts.
Games Inbox: Is the Xbox doomed to failure?
Readers express concerns about the future of Xbox, citing recent studio closures and a reliance on aging franchises like Halo and Gears of War. The discussion also touches on the shift towards digital-only games, the impact on game preservation, and the potential for companies like Sony to influence Kickstarter campaigns.
State of Decay 3 Studio Confirms Development is Continuing as it Transitions Out of Xbox
Undead Labs has confirmed that development on State of Decay 3 is continuing as the studio transitions away from Xbox. While details about the new ownership are scarce, the studio expressed optimism about the game's future. This news comes amidst significant layoffs and studio sales within Xbox, affecting other developers like Ninja Theory and Compulsion Games.
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.
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.
Compulsion Games and Double Fine confirm "Independence Day" from Xbox
Compulsion Games and Double Fine have confirmed their return to independent management following significant layoffs and studio divestitures at Xbox. Compulsion Games will retain the rights to its titles, including We Happy Few and South of Midnight, while Double Fine also regains ownership of its games. This news comes as part of broader restructuring within Xbox's gaming division, affecting multiple studios.
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.
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.
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.
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.
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.