Hellblade II
News, coverage and analysis tracking Hellblade II across the outlets.
Summary: what's happening at Xbox?Xbox announced a major restructuring involving 3,200 job cuts, with 1,600 immediate layoffs, primarily affecting ZeniMax studios like Bethesda and id Software. Several studios, including Compulsion Games, Double Fine, Ninja Theory, and Undead Labs, are being sold off or spun out as independent entities. This move aims to refocus on high-earning franchises and improve profit margins, impacting the development of upcoming titles like The Elder Scrolls 6 and potentially State of Decay 3.
Xbox needs to make a choice, says former PlayStation leader Shawn Layden: be a publisher or a platform, but you can't be bothFormer PlayStation leader Shawn Layden argues that Xbox must choose between being a major game publisher or a platform holder, stating it cannot effectively be both. He highlights the need for exclusive content to support a platform, contrasting it with the multiplatform approach required for a top publisher, a dilemma exacerbated by recent Xbox layoffs and strategic shifts.
Zenimax omorganiseras för att fokusera på sina stora varumärkenZeniMax Media is undergoing a significant restructuring to concentrate on its major franchises like The Elder Scrolls, Fallout, Wolfenstein, Doom, and Quake. This reorganization follows recent layoffs at Xbox and involves some studios becoming independent or being sold, though ZeniMax itself retains its studios.
Xbox Layoffs 2026: What Microsoft's Reset Means for Average GamersMicrosoft's Xbox division has undergone a massive restructuring, cutting approximately 3,200 jobs in fiscal year 2027 and shuttering or spinning off five studios, including Ninja Theory and Arkane Lyon. This move comes despite Microsoft's overall profitability, with Xbox reportedly struggling with low profit margins and a failed attempt to achieve a 30% accountability margin. The article analyzes the business decisions, including Game Pass accounting and price hikes, that led to these layoffs and discusses the implications for gamers, including potential changes to hardware strategy and game exclusivity.
Xbox acquisitions have been a disaster: "In a typical year, we lost 64 cents for every dollar we invested"Xbox CEO Asha Sharma revealed that Microsoft's aggressive acquisition strategy has resulted in significant financial losses, with the company losing 64 cents for every dollar invested in typical years since 2018. In response to this unsustainable model, Xbox is undergoing a reset, leading to layoffs and the divestment of several studios, including Compulsion Games, Double Fine, Ninja Theory, and Undead Labs, while others like Arkane Studios are reviewing strategic options.
No Announced Xbox Games Are Getting Axed In Microsoft Layoffs, Company SaysMicrosoft has announced significant layoffs affecting 1,600 employees at Xbox, with another 1,600 planned over the next year. Despite these cuts and studio sales, the company stated that no already announced first-party Xbox games are being canceled. Titles like Clockwork Revolution, Gears of War: E-Day, Hellblade, and State of Decay 3 are still confirmed to be in development.
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 announces 3200 layoffs and four studio departures in "most significant" Xbox restructuring in historyMicrosoft has announced a significant restructuring of its Xbox division, including approximately 3,200 layoffs and the departure of four studios. Compulsion Games and Double Fine Productions will become independent, while Ninja Theory and Undead Labs are seeking new ownership. Arkane Studios is also under review. Xbox CEO Asha Sharma cited business performance and industry challenges as reasons for the changes.
Rare added to the list of Xbox studios under threatRumors suggest that Microsoft is planning significant layoffs across several Xbox studios, including Rare, Bethesda, and Arkane, with some studios potentially facing closure or sale. This follows recent layoffs at Bungie and Microsoft pulling out of a partnership with IO Interactive. The reported motivation behind these potential cuts is a focus on profitability by new Microsoft management.
Rykte: State of Decay 3-utvecklaren Undead Labs riskerar också stängningRecent reports suggest that Microsoft may be considering closing or selling Undead Labs, the developer of the highly anticipated State of Decay 3. This follows unconfirmed information that Ninja Theory, Double Fine, and Compulsion Games are also facing potential closures or sales. Microsoft is reportedly planning to make these decisions in early July.
As Xbox studios brace for a "reset," South of Midnight developers from Compulsion Games begin looking for workDevelopers from Compulsion Games, the studio behind South of Midnight, are leaving en masse as parent company Xbox Game Studios undergoes a significant business 'reset'. Multiple reports indicate potential layoffs or closures across several Xbox Game Studios, with Compulsion Games reportedly in talks to spin off independently. Several employees have publicly announced they are seeking new opportunities after years with the studio.
Xbox’s Biggest Problems May Still Be AheadXbox is facing significant internal challenges despite a recent showcase of upcoming games like Gears of War: E-Day. CEO Asha Sharma admitted to substantial financial losses and poor investment returns over the past five years, citing issues with funding franchises and inadequate infrastructure. Reports suggest impending layoffs and potential restructuring, including spinning off Xbox as a subsidiary or forming joint ventures, as Microsoft seeks to make its gaming division a sustainable business.
Xbox is Punishing its Studios For Following Previous Orders – ReportA report indicates that Xbox is punishing its studios for following previous directives, leading to significant layoffs and studio closures. This follows major investments like the Activision Blizzard acquisition and the push for Game Pass, with some studios being criticized for prioritizing the subscription service over individual game sales. The situation has created an environment of fear and uncertainty, impacting game development.
Anyone Not Working on The Elder Scrolls or Fallout at Bethesda is Being Laid Off – RumorReports suggest that ZeniMax Media, including studios like Bethesda Game Studios and id Software, is undergoing significant layoffs, with employees not working on The Elder Scrolls or Fallout projects being particularly affected. This comes amid broader Xbox restructuring and potential studio closures for titles like Hellblade and South of Midnight, as executives cite revenue losses and rising hardware costs.
Report: Redundancies at Microsoft owned Zenimax have begunMicrosoft has reportedly begun significant layoffs and studio closures within its Zenimax Media division, which includes Bethesda, id Software, and Arkane Studios. Ninja Theory, Compulsion Games, and Double Fine Productions are also facing potential shutdowns. This news follows recent announcements about Xbox game exclusivity and a reported decline in profitability, indicating a major business reset for the brand.
Microsoft Apparently Already Knew It Would Be Closing Ninja Theory When It Announced SenuaMicrosoft reportedly planned to close or spin off Ninja Theory before the studio announced its new game, Senua, at the Xbox Games Showcase. This decision was part of a broader strategy following a "reset" memo from Xbox CEO Asha Sharma, citing declining revenues despite significant investments. While Microsoft is reportedly exploring buyouts for Ninja Theory, Compulsion Games, and Double Fine, the future of these studios and their franchises remains uncertain.
Newly Revealed PS5 Action Adventure Game Already in TroubleA newly revealed PlayStation 5 action-adventure game, Senua, from developer Ninja Theory, may be in jeopardy. Reports suggest Microsoft is considering shutting down or selling Ninja Theory, with the game's announcement at the Xbox Showcase potentially intended to attract a buyer. The future of the studio and the game remains uncertain.
Xbox's Early Momentum from Asha Sharma is Fading FastXbox's early positive momentum under Asha Sharma appears to be fading due to rumors of studio closures, including Ninja Theory, and the recent shuttering of Arkane Austin and Tango Gameworks. This trend is eroding player trust and potentially jeopardizing the success of future initiatives like Project Helix, which aims to unify Xbox's hardware, software, and services.
Xbox Game Studios-chef lämnar – efter 20 månaderCraig Duncan, head of Xbox Game Studios, has resigned after only 20 months, with chief of staff Louise O'Connor also departing. This follows recent news of potential studio closures and layoffs within Microsoft's gaming division. The departures occur amidst a strategic shift for Xbox, including price adjustments to Game Pass and a re-evaluation of multi-platform releases.- Xbox Game Pass Soldiers on With June 2026 Wave 2 Lineup AnnouncementMicrosoft has announced the Xbox Game Pass lineup for June 2026 Wave 2, amidst reports of potential studio closures and mass layoffs affecting developers like Ninja Theory, Double Fine, and Compulsion Games. The company has not yet commented on these reports.