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Xbox Cuts Several Studios & Staff in Restructuring
Xbox is undergoing a significant restructuring, involving the elimination of 268 roles and the reorganization of several first-party studios. Activision will now oversee the next Halo game, while Playground Games and Turn 10 Studios will merge. Bethesda is absorbing Obsidian Entertainment, and Ninja Theory faces a proposed closure. These changes aim to reduce organizational complexity and concentrate resources on key franchises.
Age of Empires developer World's Edge hit with layoffs following move to Activision
The Age of Empires developer World's Edge has been significantly impacted by layoffs following its transition to Activision, with "just under half" of its employees affected. Former creative director Adam Isgreen was among those let go, expressing disappointment about the outcome of his 16-year tenure. This restructuring also saw 268 positions eliminated across various Xbox studios, leading to the closure of Ninja Theory and the independence of Undead Labs.
Gears of War: E-Day Story Director Laid Off Just Before Launch
Juan Vaca, the story director for Gears of War: E-Day, was laid off from The Coalition as part of recent Xbox job cuts. Vaca announced his departure after the game reached its gold milestone, stating he is seeking new opportunities. This follows a larger wave of layoffs impacting Xbox Game Studios, with further cuts expected at Blizzard.
Age of Empires Studio Nearly Halved Amid Xbox Reset, Next Project Cancelled
The Age of Empires studio, World's Edge, has been significantly impacted by an Xbox reorganization, losing nearly half of its staff and its upcoming project. This move is part of a broader layoff scheme within Xbox.
FEROCIOUS Review | TheXboxHub
FEROCIOUS is a survival shooter that combines guns and dinosaurs, aiming to evoke nostalgia for mid-2000s gaming experiences. While the story is predictable and the AI basic, the game offers chaotic gunfights, satisfying crafting mechanics, and impressive visuals for its price point. It successfully delivers on its core premise of shooting dinosaurs on a mysterious island.
Age of Empires studio World's Edge reportedly lost "nearly half" of its staff during yesterday's Xbox cuts and move to Activision
The Age of Empires studio World's Edge has reportedly lost nearly half of its staff following an Xbox restructuring that moved the studio under Activision's control. Former creative director Adam Isgreen confirmed his own departure and that of many colleagues. This news comes amidst broader layoffs and studio consolidations within Xbox, though the article also notes the success of Star Wars Zero Company, which has sold over a million copies despite its development team facing furlough.
Undead Labs makes 'significant' layoffs after splitting from Xbox
Undead Labs, the studio behind the State of Decay franchise, has become an independent, employee-owned company after divesting from Xbox. This separation has resulted in significant layoffs, impacting employees who worked on State of Decay 3. The studio plans to work with a new publisher for the game's release, which will still launch day one on Xbox Game Pass.
Gears of War: E-Day director laid off days after completing development as Xbox cuts reach The Coalition
Juan Vaca, the story director for the upcoming Gears of War: E-Day, has been laid off by Microsoft as part of its ongoing job cuts. This news comes just days after Vaca celebrated the game going gold, and it follows a larger wave of redundancies across Xbox studios, including Halo Studios. The reasons for Vaca's dismissal, particularly so close to the game's October 2026 release, remain unclear.
Halo Studios cinematic director promoted, then laid off in the same week
Xbox cinematic director Josh Daniels was promoted and then laid off in the same week as part of Microsoft's ongoing series of layoffs affecting 1,600 employees. This situation highlights the current instability within the video game industry, where even promotions do not guarantee job security.
State of Decay 3 studio Undead Labs lay off "a significant number" of "exceptionally talented developers" after gaining independence from Xbox
Undead Labs, the studio behind State of Decay 3, has laid off a significant number of employees shortly after becoming independent from Xbox. This move follows a trend of layoffs across the industry and within Microsoft-owned studios, impacting other developers like Double Fine, Compulsion Games, Ninja Theory, and Arkane Studios.
Baldur's Gate 3 publishing lead worries for Fallout: New Vegas dev Obsidian as Bethesda takes over management of the studio, says he "can't imagine that feels great"
Baldur's Gate 3 publishing lead Michael Douse expressed concern over Bethesda taking over management of Obsidian Entertainment, suggesting it would be a difficult situation for the studio. This news comes amid significant layoffs at Xbox, impacting both Bethesda and Obsidian, and follows the unveiling of a new collaborative Fallout game and remasters of Fallout 3 and Fallout: New Vegas.
Xbox lays off Gears of War: E-Day's story director barely two weeks before the game's launch
Xbox has conducted significant layoffs, impacting the story director of the upcoming Gears of War: E-Day, Juan Vaca, just weeks before its October 6th release. This news comes amidst broader restructuring within Xbox, affecting studios like Rare, World's Edge, Playground Games, Turn 10 Studios, Obsidian Entertainment, and 343 Industries, with Ninja Theory reportedly heading towards closure.
Halo Moves to Activision as Xbox Cuts 268 More Jobs
Microsoft has confirmed another 268 layoffs across Xbox, impacting Halo Studios and other first-party teams, as part of a significant reorganization. Development of the next Halo game will move to Activision, while studios like Rare and World's Edge will now fall under Activision's remit. Ninja Theory is facing proposed closure.
Undead Labs confirms it is now an "employee-owned studio"
Undead Labs, the developer of State of Decay, has announced its separation from Xbox and is now operating as an employee-owned studio. Development on State of Decay 3 continues, with a planned release in 2027 for Xbox, Game Pass, PC, and PlayStation. This transition occurs amidst broader layoffs and restructuring within Microsoft's gaming division.
Gears of War: E-Day to hold special event in Los Angeles — MP3s & NPCs
A special event for Gears of War: E-Day will be held in Los Angeles on September 30, allowing fans to play the game before its Early Access launch. The event will feature themed activities, giveaways, and a chance to win a custom Xbox controller. Gears of War: E-Day is set to release on October 6 for Xbox and PC, with a day-one launch on Game Pass.
Evening Reading - September 22, 2026
Xbox has confirmed significant layoffs affecting 268 employees across Halo Studios, Xbox Game Studios, and more. This restructuring includes the next Halo game being developed by Activision, and the merger of Turn 10 and Playground Games. Additionally, Obsidian Entertainment and Rage/World's Edge will now report under Bethesda and Activision respectively.
Xbox Layoffs: 268 Employees Affected in Latest Restructuring — Too Much Gaming | Video Games Reviews, News, & Guides
Xbox has undergone significant restructuring, impacting 268 employees. While studios like Compulsion Games, Double Fine Productions, and Undead Labs are safe and continuing work on titles like State of Decay 3, Ninja Theory and Arkane Lyon face potential closure. The article suggests Microsoft grew too quickly and its investment in Xbox Game Pass is now contributing to these cutbacks.
Games Inbox: Are you still an Xbox fan?
Readers express deep concern over recent layoffs at Xbox and the perceived decline of the brand's relevance and developer support. While some praise Capcom's successful year and positive employee treatment, others question Microsoft's strategy and the future of its studios.
Obsidian Will Retain Leadership and “Creative Identity” Under Bethesda – Rumor
A rumor suggests that Obsidian Entertainment will maintain its leadership and creative identity while reporting to Bethesda under a new organizational structure within Xbox. This change comes amidst significant layoffs and restructuring within Xbox, raising concerns for Obsidian's future despite assurances of continued creative independence and ongoing work on a new Fallout project.
State of Decay 3 Remains in “Active Development” Despite “Significant” Layoffs at Undead Labs
Undead Labs, now independent from Xbox, has announced significant layoffs, raising concerns about State of Decay 3's development. Studio head Philip Holt confirmed the game remains in "active development" on schedule, utilizing Unreal Engine 5 and assistance from The Coalition. Despite past allegations of a toxic work environment and previous rumors of layoffs, the game is still targeting a 2027 release for Xbox Series X/S, PlayStation 5, and PC, and will be available on Game Pass.
