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US Federal Reserve taps Xbox CEO Asha Sharma, who just laid off 3,200 employees, to lead task force on jobs
The Federal Reserve has appointed Xbox CEO Asha Sharma to lead a task force on employment and productivity. Sharma, who recently oversaw significant layoffs at Xbox, will work alongside other experts to assess the economic impact of new technologies like artificial intelligence. This appointment comes shortly after a major reorganization within Xbox, affecting studios like Mojang and King.
MMO Business Roundup: Marathon’s lawsuit, the Sony petition, TGS 2026, and Minecraft’s fate
This MMO business roundup covers several key events, including the settlement of a lawsuit filed by former Marathon game director Christopher Barrett against Sony and Bungie. It also highlights an online petition by PNP Games urging Sony to continue supporting physical media, which has garnered a significant number of signatures. Additionally, Nexon announced its presence at Tokyo Game Show, and an article from Gamespot questions Microsoft's strategy for Minecraft's future, suggesting a focus on competing with Roblox could be detrimental.
'All options are on the table, considering the drastic measure already put in place' — Could Microsoft sell Xbox? Analysts say it's too expensive for that, but that it could be dismantled piece by piece
Industry analysts are discussing the potential sale or dismantling of Microsoft's Xbox division amidst a significant restructuring. While a full sale is considered unlikely due to its high cost, analysts suggest that individual studios or intellectual properties might be sold off piecemeal. Xbox CEO Asha Sharma has acknowledged the business is 'not healthy' and is implementing changes to improve its financial performance and strategic direction.
id Software Considered a Perfect Dark Game
id Software experienced significant layoffs, with at least 92 full-time employees affected as part of broader cuts at Xbox. The article examines the impact of these workforce reductions on the studio.
"We were already running a tight ship": Elder Scrolls 6 devs are worried about Xbox's layoffs causing even more delays to the long-awaited RPG
Bethesda developers are concerned that recent layoffs at Microsoft and Xbox will cause further delays for The Elder Scrolls 6. Staff report that the cuts have negatively impacted morale and may lead to longer development cycles due to the need for onboarding new or contract labor. Developers fear this will necessitate crunch time to meet deadlines for the highly anticipated RPG.
"Probably dead forever": Team behind the incredible Doom and Wolfenstein engine reportedly reduced to 1 person…
Following significant job cuts at id Software, the legendary studio's proprietary id Tech engine reportedly has only one person left working on it. This development raises concerns about the future of the engine, which has powered iconic titles like Doom and Wolfenstein since the mid-'90s. While some speculation exists about potential support from the id Software Frankfurt office, the immediate future of the engine and id Software's projects remains uncertain amidst widespread layoffs impacting Microsoft's gaming divisions.
The Elder Scrolls 6 will be hurt and potentially delayed by Xbox layoffs, Bethesda devs expect: "This has had a…
Bethesda Game Studios developers express concern that recent Xbox layoffs will negatively impact the production and potentially delay The Elder Scrolls 6. Staff report that the loss of programmers, artists, and designers has already affected morale and workflow, with fears of increased reliance on contract labor and further delays.
Xbox layoffs have likely killed another Perfect Dark reboot from the hollowed-out id Software, as well as a John…
Recent layoffs at Xbox, including approximately 136 at id Software, have likely halted potential projects such as a Perfect Dark reboot and a John Wick-inspired game codenamed "Fury." The significant staff reductions at id Software have reportedly reduced it to a support studio, making ambitious new game development unlikely.
The Elder Scrolls 6 Devs Fear “More Delays” After Layoffs Have “Crushing Effect On Morale”
Developers at Bethesda Game Studios are concerned that recent Microsoft layoffs could lead to significant delays for The Elder Scrolls 6, citing a "crushing effect on morale." These cuts, impacting various disciplines, raise fears of project timelines being pushed back and potential reliance on contract labor. The studio is also reportedly planning Fallout 5 after The Elder Scrolls 6.
New Perfect Dark, Co-Op Doom Were Reportedly In The Works At Id Software Before Mass Layoffs
Mass layoffs have significantly impacted id Software, with reports suggesting projects like a new Perfect Dark game, a co-op Doom experience, and a John Wick-inspired title called Fury were in development. Xbox CEO Asha Sharma's 'reset plan' led to the dismissal of over half of id Software's staff, potentially affecting the future of the id Tech engine and other studios like Obsidian Entertainment and ZeniMax Online Studios.
Even The Elder Scrolls 6 is affected by Xbox layoffs, say Bethesda employees, as "key" people are let go and morale bottoms out
Bethesda Game Studios employees report that recent Xbox layoffs have significantly impacted development on The Elder Scrolls 6, with over 50 staff, including key personnel, being let go. This has led to low morale and concerns about increased crunch and delays for the highly anticipated title. The layoffs also affect other studios like id Software, potentially reducing their roles to support.
The Elder Scrolls 6 Will Suffer Because of Xbox Layoffs, Bethesda Staff Say, Fearing Delays, Crunch, and Generational Talent Being Replaced by Contractors
Bethesda staff express concerns that recent Xbox layoffs will significantly impact the development of The Elder Scrolls 6. They fear potential delays, increased crunch, and the replacement of experienced talent with contractors.
Doom and Quake studio id Software reportedly gutted, leaving standalone capabilities in doubt and newly revealed game ideas dead
Microsoft's restructuring has severely impacted id Software, with 136 employees laid off, leaving fewer than 50 staff. This reduction in force has reportedly led to the cancellation of new game ideas like 'Fury' and a 'Perfect Dark' title, and casts doubt on the studio's ability to develop full-scale games independently. The future of id Software appears to be shifting towards a support role for other Xbox studios, potentially focusing on its proprietary id Tech engine.
Fallout: New Vegas studio Obsidian reportedly moved onto a new Fallout game by Xbox, but at the cost of a sequel to Avowed
Xbox has reportedly shifted Obsidian Entertainment's focus to a new Fallout game following significant layoffs at the studio. This move has led to the cancellation of multiple projects, including a sequel to the RPG Avowed. Studio design director Josh Sawyer, who previously directed Fallout: New Vegas, is expected to lead the new Fallout title.
New Fallout game in development by makers of New Vegas but at a cost
Xbox has commissioned Obsidian Entertainment, the studio behind Fallout: New Vegas, to develop a new Fallout game, led by project director Josh Sawyer. This decision comes after Obsidian experienced significant layoffs, with reports suggesting that previous projects were cancelled to prioritize this new Fallout title. The move aims to capitalize on the franchise's popularity, potentially releasing before Bethesda's Fallout 5.
Xbox had laid off 379 Zenimax workers in Maryland
Microsoft's Xbox division has laid off 379 employees across ZeniMax Media Inc. and ZeniMax Online Studios in Maryland. The cuts, effective September 4, 2026, impact 213 workers at The Elder Scrolls Online developer and 166 at ZeniMax Media Inc. This follows a broader trend of job reductions at Xbox, with a total of 3,200 roles being cut across the division.
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.
Obsidian Entertainment returns to Fallout franchise, while cancelling Avowed 2
Obsidian Entertainment is returning to the Fallout franchise with a new game led by Josh Sawyer, director of Fallout: New Vegas. This shift comes after Xbox announced mass layoffs, leading to the cancellation of Avowed 2 and other unannounced projects. The studio aims to leverage Xbox's established IPs for growth following recent sales disappointments.
New Fallout in the Works at Obsidian, Avowed 2 Cancelled – Rumor
According to reports, Obsidian Entertainment is developing a new Fallout title, potentially directed by Josh Sawyer, who previously worked on Fallout: New Vegas. This comes as Avowed 2 and other unannounced projects have reportedly been cancelled following an internal reset at Xbox. While Avowed 2 may continue development temporarily, the studio is shifting focus to the new Fallout game.
DOOM Studio Pitched New Perfect Dark, John Wick-Style Projects Before Layoffs – Rumor
Rumors suggest id Software pitched several new projects, including a Perfect Dark reboot and a John Wick-inspired sci-fi noir game codenamed Fury, before recent layoffs significantly impacted its staff. These proposed titles were intended to diversify beyond the DOOM franchise. The studio's future as a standalone team is now uncertain following extensive job cuts, which are part of broader layoffs at Microsoft.
