Xbox Game Studios
Hardware, storefront and ecosystem news for Xbox Game Studios.
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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.
Compulsion Games is returning to independent management amid sweeping Xbox reorganization: 'Our immediate priority…
Compulsion Games is returning to independent management following a significant reorganization at Xbox and Microsoft, which includes widespread layoffs. The studio will retain ownership of its intellectual property, including South of Midnight, We Happy Few, and Contrast. This move comes after reports suggested the studio was at risk of closure.
Xbox cuts 3,200 staff as four studios to exit Microsoft – Arkane under review
Microsoft has announced significant layoffs affecting approximately 3,200 employees within its Xbox division, with 1,600 staff being let go immediately. Four studios, including Ninja Theory and Undead Labs, are becoming independent or being sold off, while Arkane Lyon's future is under review. This restructuring follows a period of rapid developer acquisitions and aims to refocus Xbox's business strategy.
Microsoft confirms 3200 layoffs and four studio departures
Microsoft has confirmed significant layoffs affecting approximately 3,200 employees across its Xbox business, including 1,600 on the day of the announcement. Four studios, Compulsion Games, Double Fine, Ninja Theory, and Undead Labs, will either become independent or find new ownership, while Arkane Studios faces strategic review. Xbox CEO Asha Sharma cited slower-than-expected growth in Game Pass, multi-platform strategies, and content portfolio as reasons for the restructuring, which will also involve reducing management layers.
Xbox is laying off 3,200 people and dumping 4 studios
Xbox announced significant layoffs affecting approximately 3,200 employees and the restructuring of four studios: Compulsion Games, Double Fine, Ninja Theory, and Undead Labs. While Compulsion and Double Fine will become independent, Ninja Theory and Undead Labs are being sold to new management. The company also confirmed reductions across Activision, Bethesda, Blizzard, King, Mojang, and Xbox Game Studios, with CEO Asha Sharma citing the business's unhealthy state and slower-than-expected growth from Game Pass and multi-platform releases.
Xbox to reduce workforce by 3,200, five studios to be divested
Xbox announced significant workforce reductions affecting 3,200 employees and the divestment of five studios: Compulsion Games, Double Fine, Ninja Theory, Undead Labs, and Arkane. Compulsion Games and Double Fine will become independent, while Ninja Theory and Undead Labs are set for new ownership to continue development on their respective projects. Xbox CEO Asha Sharma stated the company is refocusing its strategy, acknowledging that it cannot be the best home for every studio.
Resetting XBOX
Xbox is undergoing its most significant restructure in history, involving approximately 3,200 job reductions throughout fiscal year 2027, with 1,600 roles eliminated immediately. Four studios, including Compulsion Games and Double Fine Productions, will transition to independent management, while Ninja Theory and Undead Labs are in terms to join new ownership. This strategic reset aims to improve profitability and focus on core businesses, with a simplified organizational structure and a new Chief Operating Officer, Helen Chiang, overseeing operations.
Something for the Weekend – 04/07/26
This week's gaming news includes Sony phasing out physical disc production by 2028 and closing PlayStation Store access for PS3 and Vita again. Xbox is reportedly testing a disc-to-digital feature. Several games received release date changes or confirmations, including Onimusha: Warlords and The Elder Scrolls IV: Oblivion Remastered. Reviews were published for Rhythm Paradise Groove and WILL: Follow The Light, alongside previews for Fatekeeper, Witchspire, Dziady, Doom: The Dark Ages, and Splatoon Raiders.
Sea of Thieves Developer Rare is “On the Block” Ahead of Xbox’s Mass Layoffs – Rumor
Reports suggest that Sea of Thieves developer Rare may be affected by upcoming mass layoffs at Xbox, potentially impacting over 1,000 staff. While the studio's closure is not confirmed, this follows previous restructuring after the cancellation of Everwild. Layoffs are reportedly expected around July 6th.
Business and Finance
Obsidian Entertainment, the developer behind Avowed and The Outer Worlds, is reportedly in negotiations with Xbox Game Studios to avoid potential closure. This news comes amid broader discussions about the future of several Xbox-owned studios.
Subscriptions, Clouds, and Streams
NVIDIA's GeForce NOW service will feature new games in July, while Xbox Game Pass is set to remove a significant number of titles soon. The article touches upon the evolving landscape of game subscriptions and cloud streaming services.
450 words on Clockwork Revolution, the console exclusive that may mark the end of an era for Xbox
Clockwork Revolution, an upcoming Xbox console exclusive from inXile Entertainment, is highlighted as a potential system-seller and a glimpse into the future of RPGs. However, the article expresses concern that the game's ambitious scope and long development cycle may represent the end of an era for Xbox's willingness to take creative risks on new intellectual property, especially in light of recent internal restructuring and rumors of layoffs.
Fantasy meets reality: Why turmoil at Xbox is impacting IO Interactive and Project Fantasy
IO Interactive's online fantasy RPG, Project Fantasy, is in turmoil after Xbox Game Studios Publishing reportedly pulled its funding. Despite this setback, IO Interactive remains committed to the project and is restructuring to continue development. This situation highlights the shifting priorities within Xbox under new CEO Asha Sharma, impacting independent studios reliant on external partnerships.
Microsoft reportedly add Arkane and their Blade game to the potential shuttering pile
Microsoft is reportedly considering shutting down Arkane Studios and canceling the Blade game, with potential layoffs affecting up to 1000 employees across Xbox. Other studios like Ninja Theory and Undead Labs are also rumored to be on the chopping block. The company is also reportedly divesting its partnership with IO Interactive on Project Fantasy.
MMO Week in Review: Guild Wars goes mobile, Bungie gets layoffs
This week's MMO news includes Guild Wars launching on mobile, Star Trek Online's new update, and Throne & Liberty's summer expansion. However, the industry also saw significant layoffs at Sony and Bungie, impacting hundreds of developers working on Destiny 2 and Marathon. Other news includes Valve's Steam Machine pricing, the ongoing Ashes of Creation lawsuit, and updates on Grand Theft Auto VI's online multiplayer.
IO Interactive look set for layoffs as their external partner for Project Fantasy pulls out
IO Interactive is facing imminent layoffs due to the termination of its relationship with an external partner for its unannounced game, Project Fantasy. While the studio remains committed to the game's development, the split necessitates staffing changes. Project Fantasy was previously revealed in documents to be intended for publishing by Xbox Game Studios.
Microsoft Could Cancel Marvel’s Blade And Close Its Developer
Microsoft is reportedly considering cancelling the upcoming Marvel's Blade game and potentially closing its developer, Arkane Studios. The game, originally slated for 2026 but delayed to late 2027 and over budget, has not had gameplay footage released since its 2023 announcement. This potential closure is part of broader plans for studio restructuring and layoffs within Xbox, which are expected to begin in July.
The Best Xbox And Game Pass Games Of 2026 So Far – The Must-Plays From January To June
The first half of 2026 has been a strong period for Xbox and Game Pass, featuring a diverse range of critically acclaimed titles. Highlights include the horror game REANIMAL, the reinvented Resident Evil Requiem, the unique word-based roguelike Beyond Words, and the highly anticipated Hades II. Other standout releases include TerraTech Legion, Dungeon Clawler, Forza Horizon 6, and the new James Bond title 007 First Light, many of which launched day one on Game Pass.
The Elder Scrolls 4: Oblivion Remastered's physical Switch 2 release has the full game on a cartridge, and we've finally got a release date, too
The Elder Scrolls 4: Oblivion Remastered is set to release on Nintendo Switch on August 11th, with both standard and deluxe editions available for pre-order. The physical release will contain the full game on cartridge, a departure from previous Bethesda Switch ports. The game targets 900p at 30 FPS handheld and 1080p at 30 FPS docked, with DLSS support.
Best New Xbox And Game Pass Games For July 2026
July 2026 will bring several notable game releases and Game Pass additions for Xbox players. Highlights include remakes of Assassin's Creed IV: Black Flag and Halo: Combat Evolved, alongside new titles like The Planet Crafter and Mistfall Hunter. The month offers a diverse range of genres, from action RPGs and puzzle adventures to survival and retro shooters, ensuring something for every player.
