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Even Obsidian couldn't escape the Xbox cuts, with losses ranging from a 21-year veteran artist to an engineer…
Obsidian Entertainment has experienced layoffs, affecting employees including a 21-year veteran artist and a recent engineer. This marks the first time the studio has been impacted by the recent waves of job cuts at Microsoft's Xbox division. The exact number of affected employees is between nine and 49, falling below the threshold that would trigger a WARN Act notice.
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.
'We Need to Change Course' — Bethesda Boss Tells Staff the Company Must Focus on 'Our Strongest Franchises' as Xbox Layoffs Hit Hard
The head of Bethesda has instructed staff to concentrate on the company's most successful franchises following significant layoffs within Xbox. This strategic shift aims to reinforce core intellectual properties in response to the recent workforce reductions.
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.
Microsoft's layoffs extend beyond Xbox
Microsoft is implementing additional layoffs, cutting 3,200 jobs across its divisions, extending beyond its gaming branch, Xbox. This news follows previous job reductions within the company.
Arkane founder asks Xbox CEO "how much" Microsoft wants for the studio: "I'm asking for a…
Original Arkane Studios founder Raphael Colantonio inquired about the potential sale price of the studio amidst Xbox's cost-cutting measures and planned divestments. Microsoft is reportedly exploring strategic options for Arkane, which could lead to its separation from Xbox, similar to other studios like Ninja Theory and Double Fine. Colantonio, who left Arkane in 2017 to form WolfeEye Studios, has previously been critical of Xbox's strategy and decisions, including the closure of Arkane Austin.
Xbox layoffs: jobs lost at Bethesda, more reported at id Software
Xbox has announced significant layoffs, impacting approximately 20% of its workforce, totaling 3,200 employees. Job losses have been confirmed at studios including Bethesda and id Software, with five studios being divested or acquired. This follows a recent round of voluntary redundancies and coincides with the start of Microsoft's financial year.
Xbox layoffs: jobs lost at Bethesda, more reported at id Software
Xbox CEO Asha Sharma announced sweeping layoffs affecting approximately 3,200 employees, or 20% of the organization. Several studios, including Bethesda, Zenimax Online Studios, and id Software, have confirmed job losses, with up to half of the team working on The Elder Scrolls Online reportedly impacted. Five studios are being divested, with Double Fine and Compulsion Games becoming independent, and Ninja Theory and Undead Labs in the process of being acquired.
Fans Mourn Starfield Amid Xbox Layoffs, With Bethesda Now Seemingly Focused on Fallout, Elder Scrolls, Wolfenstein, Doom, and Quake
Amidst recent Xbox layoffs, there is speculation that a Starfield sequel is unlikely, with Bethesda seemingly shifting focus to its established franchises like Fallout, The Elder Scrolls, Wolfenstein, Doom, and Quake. This suggests a potential change in development priorities following the initial reception of Starfield.
Wolfenstein and Doom still in development despite Bethesda cuts confirms insider
Despite significant layoffs at ZeniMax Media and its studios like id Software and MachineGames, franchises such as Wolfenstein, Doom, and Quake are reportedly still in development. While Microsoft's Xbox is prioritizing Fallout and The Elder Scrolls, an insider confirms that ZeniMax will continue to support other major series, with Wolfenstein 3 rumored to be in development at MachineGames.
Elder Scrolls Online developer left reeling by Xbox layoffs—with teams gutted, senior talent gone, and roadmaps…
ZeniMax Online Studios, the developer of Elder Scrolls Online, has been significantly impacted by recent Xbox layoffs, with reports indicating that half of the active content development team has been let go. This follows a previous round of job losses at the studio in 2025 and raises concerns about the future of the game's roadmap and development.
Xbox Layoffs “Heavily Impact” The Accessibility Team, Too
Xbox has significantly impacted its Accessibility team with recent layoffs, affecting multiple researchers and testers, including senior user researcher Elisabeth Whyte and accessibility test lead Zach Clothier. Despite these cuts, which represent about 20% of Microsoft's gaming staff, a spokesperson stated that accessibility remains a priority for Xbox. The company plans to continue its work on features like the Adaptive Controller and in-game accessibility options.
Bethesda Game Studios and ZeniMax hit hard by Xbox layoffs, says union
Microsoft's recent Xbox layoffs have significantly impacted Bethesda Game Studios and its parent company ZeniMax Media, with the Bethesda Game Workers Union reporting that many employees have been let go. Reports indicate that studios like id Software and ZeniMax Online Studios are also cutting a substantial number of staff. These reductions are part of a broader reorganization across various Microsoft gaming divisions to focus on higher priority projects.
Xbox Lays Off 1,600 People Today, With Another 1,600 Cuts To Come
The Xbox brand has initiated significant layoffs, cutting 1,600 jobs and planning an additional 1,600 reductions. This has created anxiety among employees regarding their future employment within the company.
3 200 sägs upp och 4 studios lämnar Xbox
Xbox is undergoing significant restructuring, with 3,200 employees being laid off, 1,600 immediately, and four studios leaving the Xbox family. Compulsion Games and Double Fine Productions will become independent, while Ninja Theory and Undead Labs are being sold. The company is also streamlining management levels and appointing its first Chief Operating Officer, Helen Chiang. These changes come as Xbox faces lower profit margins and a shrinking player base, despite continued investment in Game Pass.
Doom, Wolfenstein, and Quake will reportedly join Fallout and Elder Scrolls as Bethesda owner ZeniMax switches focus to its largest franchises amid Xbox restructure
Bethesda owner ZeniMax is reportedly restructuring to focus on its major franchises like Fallout, The Elder Scrolls, Doom, Wolfenstein, and Quake. This shift occurs amid a broader Xbox overhaul that includes layoffs and the sale of other studios. While new entries for Quake and Wolfenstein are implied, id Software and ZeniMax Online Studios are facing significant staff cuts.
Arkane temporarily spared in Xbox bloodbath thanks to French law, but its future is up in the air
Arkane Lyon is reportedly entering negotiations for an independent exit from Xbox due to French labor laws, which prevent immediate layoffs. While the studio's future, including the development of Marvel's Blade, is uncertain, these laws offer a different path compared to the abrupt closures of other Xbox studios like Arkane Austin. Negotiations could still result in significant layoffs at Arkane Lyon.
Independent again: Double Fine and Compulsion react to leaving Xbox and taking all their games with them
Double Fine Productions and Compulsion Games are returning to independent development after being let go by Microsoft as part of Xbox restructuring. Both studios will retain ownership of their games, including Psychonauts 2, Keeper, and South of Midnight. This move follows a period of significant layoffs and strategic shifts within Xbox.
New Xbox CEO Admits Game Pass Bet Has Not Worked Out
Xbox CEO Asha Sharma announced a strategic reset for the Xbox business, acknowledging that major bets like Xbox Game Pass have not grown at the expected pace. The plan includes mass layoffs and selling off studios, as the company shifts focus to higher priority projects. Sharma admitted the core business has weakened, leading to this significant shakeup.
Microsoft Slashes XBOX Workforce; Sheds Studios
Xbox boss Asha Sharma announced significant workforce reductions and studio closures, stating that the current business model is 'not healthy.' This move is part of a broader 'reset' for the Xbox division.