Xbox Game Studios
Xbox Game Studios business and news from across the web.
"Great job Microsoft": Former id Software artist says the legendary dev has been "relegated to support studio size" after Xbox's strategy of "nuking a team into the dirt"Former id Software artist Derek Best stated that Microsoft's recent layoffs have reduced the iconic FPS developer to a support studio size. Best, who was among the 136 employees laid off, criticized Microsoft's strategy, noting the significant loss of institutional knowledge and the impact on the id Tech engine team. The layoffs have raised concerns about the future of id Software's core franchises like Doom and Quake.
Xbox Game Pass Hidden Gems: 20 Games Worth Playing Right Now (2026) | TAGThis guide highlights 20 under-the-radar games available on Xbox Game Pass, categorized by their time commitment. It focuses on titles that are either new, forgotten, or obscure, offering recommendations for various playstyles and schedules. The article emphasizes that these games are worth owning even if they leave the service.
Pitches for a co-op Doom, a new Perfect Dark, and a John Wick-inspired cyberpunk game were cooking at id Software before Microsoft layoffs reportedly led to 136 job cutsid Software reportedly had multiple projects in development, including a new Perfect Dark, a John Wick-inspired cyberpunk game titled Fury, and a multiplayer Doom title, before significant layoffs occurred. These pitches were made after the completion of Doom: The Dark Ages' Revelations DLC, and the studio's future now seems uncertain as Xbox reportedly pushes for faster releases of major franchises like The Elder Scrolls 6 and Fallout 5.
Report: Obsidian to work on Fallout title as unannounced projects cancelledObsidian 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.
Microsoft, Please Don’t Ruin MinecraftMicrosoft's new CEO Asha Sharma is reportedly looking to increase investment in Minecraft, drawing comparisons to Roblox's business model. This shift, occurring amidst significant studio cuts within Xbox, raises concerns that Microsoft may alter Minecraft's core gameplay and creative freedom to boost profitability, potentially moving away from its established identity as a sandbox for crafting and survival.
Rather than rip and tear id Software apart, Xbox should have put the FPS pioneers on Gears of WarFollowing significant layoffs at Xbox Game Studios, including a reported 50% staff reduction at id Software, the article argues that Xbox should leverage id Software's expertise for the Gears of War franchise. It suggests that id's talent for creating visceral first-person shooter experiences would be a better fit for Gears of War than continuing with their own struggling franchises like Quake Champions or Rage 2.
Xbox CEO Asha Sharma says "a healthy Xbox could weather" the current storm, but Microsoft's gaming brand…Xbox CEO Asha Sharma stated that the recent layoffs and significant restructuring at Microsoft's gaming division were necessary due to a lack of focus on the core business and spreading resources too thin. She admitted that a healthier Xbox could have better weathered the current hardware cost crisis, and outlined plans to refocus on the flagship console, explore new business models, and expand availability on PC and mobile.
Xbox layoffs mean that Elder Scrolls Online's roadmap is "shifting" just two days before Season One's release... the plan put in place for the MMO after the last round of cutsMicrosoft's recent layoffs at Xbox Game Studios and Zenimax Online Studios have significantly impacted the development roadmap for Elder Scrolls Online. While the upcoming Season One launch will proceed, future plans are now uncertain and will require re-evaluation by the remaining team. This shift comes despite previous statements from studio leadership indicating the seasonal model was not a response to prior cuts.
Report: Obsidian losing around one quarter of its staff to 'Xbox reset'Obsidian Entertainment has reportedly laid off approximately one quarter of its staff, impacting 60-70 employees as part of a larger 'Xbox reset'. The cuts affect various departments, including senior talent and the art director for The Outer Worlds. This follows a broader announcement of 3200 layoffs at Xbox, with leadership citing a need to course-correct after ambitious bets on Game Pass and multi-platform strategies did not yield expected results.
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.
Report: The “majority” of ID software and up to half of Zenimax online have lost their jobsReports 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 reviewMicrosoft 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 departuresMicrosoft 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 studiosXbox 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 divestedXbox 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 XBOXXbox 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 – 04/07/26This 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 – RumorReports 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 FinanceObsidian 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.