Layoffs
Ongoing coverage on Layoffs.
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Zenimax omorganiseras för att fokusera på sina stora varumärken
ZeniMax 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.
Evening Reading - July 6, 2026
The video game industry is facing significant challenges, with Microsoft confirming mass layoffs that will lead to Double Fine Productions and Compulsion Games becoming independent. Xbox has appointed Helen Chiang, head of Mojang Studios, as its first Chief Operating Officer. Additionally, Nintendo plans to discontinue original Switch consoles in Europe in 2027, while Microsoft is being sued in Wisconsin over data center practices.
Xbox to cut 3200 jobs in the new financial year
Microsoft's Xbox division is undergoing its most significant restructure in history, with approximately 3,200 jobs being cut over the next fiscal year, including 1,600 immediately. Five game development studios are also departing, with Double Fine and Compulsion Games becoming independent, while Ninja Theory, Undead Labs, and Arkane Studios are in various stages of negotiation or consultation for new ownership. Xbox CEO Asha Sharma cited unhealthy business margins and a strategic shift towards AI investment as reasons for the cuts.
How XBOX Layoffs Impact Studios
Reports indicate that recent Xbox layoffs have affected several Microsoft studios, with Blizzard Entertainment's president reportedly sending an email to staff. The extent of the impact on these studios is still being assessed.
How Leaving XBOX Impacts Studios
Following recent announcements of layoffs at Xbox, Double Fine Productions and Compulsion Games have become independent studios once again. Double Fine Productions has released a statement regarding this change on Bluesky.
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.
Xbox Layoffs’ Effects on Blizzard Have Been “Comparatively Minimal” – Rumor
Blizzard Entertainment president Johanna Faries addressed staff regarding Xbox's recent layoffs, stating the impact on Blizzard has been comparatively minimal. While further details will be shared, the company plans to focus on its major franchises like Diablo, StarCraft, and Warcraft, with potential cross-media adaptations and BlizzCon 2026 still planned. Xbox CEO Asha Sharma indicated that the layoffs are part of a broader reset due to failed bets and overextension, with approximately 3,200 job cuts planned for the fiscal year.
The Xbox reset is not going to work if it’s just a retreat to the past
Microsoft's Xbox division continues to face significant challenges, marked by recurring mass layoffs and declining results. Despite the high volume of job cuts and studio closures, the company's future strategy remains unclear, with speculation that new leadership may be attempting to revert to past successes rather than innovate. The article questions the sustainability of this approach, especially concerning hardware sales and the exclusivity of major franchises like The Elder Scrolls 6.
The Elder Scrolls Online Studio Has Been Hit Hard by Layoffs, Content Roadmap “Will Be Shifting”
Zenimax Online Studios, the developer of The Elder Scrolls Online, has been significantly impacted by recent layoffs within Xbox. This has led to a reassessment of the MMORPG's content roadmap, with an updated schedule to be announced later. The article also mentions past layoffs at the studio, including the cancellation of an in-development MMO codenamed Blackbird.
Bethesda Hit Hard by Layoffs, Studio Head Says “We Need to Change Course” – Rumor
Bethesda has reportedly experienced significant layoffs, with studio head Jill Braff stating the company needs to "change course" to ensure a more stable foundation and sustainable growth. This shift involves focusing on its strongest franchises, The Elder Scrolls and Fallout, potentially impacting development on other titles. The move comes amid broader industry layoffs and aims to reposition Bethesda for future success.
The Outer Worlds 2, Avowed Studio Hit by Layoffs, Affecting 25 Percent of Employees – Rumor
Obsidian Entertainment has reportedly laid off 60 to 70 employees, approximately 25 percent of its staff, including The Outer Worlds 2 art director Daniel Alpert. Despite these layoffs, the studio continues development on Grounded and story DLC for The Outer Worlds 2, while also working on Avowed. Studio head Feargus Urquhart clarified that neither Avowed nor The Outer Worlds 2 were considered 'disasters' despite not meeting sales expectations.
Arkane Founder Asks Xbox How Much the Studio Would Cost “For a Friend”
Arkane Studios founder Raphael Colantonio humorously inquired about the acquisition cost of the studio from Xbox CEO Asha Sharma. This comes amid Xbox's recent layoffs and studio restructuring, which has put Arkane under review. Colantonio has previously criticized Xbox's Game Pass model as unsustainable.
The Gaming Industry Is Eating Itself Alive
Xbox is undergoing a massive restructuring, including 3,200 layoffs, impacting numerous studios and divisions like Activision, Bethesda, and Blizzard. While some studios regain independence and first-party projects remain safe for now, the article criticizes Xbox's overall strategy, citing Game Pass's performance and declining hardware revenue. The piece also touches on PlayStation's similar issues with digital ownership and preservation, painting a bleak picture for the future of gaming costs and ownership.
Xbox CEO Says “We Simply Spread Ourselves Too Thin” Following Layoffs
Xbox CEO Asha Sharma stated that the division "spread ourselves too thin" by making numerous unsuccessful bets, leading to recent layoffs affecting approximately 1,600 employees. As part of a restructuring, four studios are being let go, with Compulsion Games and Double Fine Productions becoming independent, and Undead Labs and Ninja Theory being sold. Sharma also confirmed further job cuts are planned and announced organizational changes, including a new COO, Helen Chiang.
State of Decay 3 Studio Confirms Development is Continuing as it Transitions Out of Xbox
Undead Labs has confirmed that development on State of Decay 3 is continuing as the studio transitions away from Xbox. While details about the new ownership are scarce, the studio expressed optimism about the game's future. This news comes amidst significant layoffs and studio sales within Xbox, affecting other developers like Ninja Theory and Compulsion Games.
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.
Xbox Says It Must Reset Because Its Business Is “Not Healthy”
Xbox is undergoing a significant restructuring, including 3,200 job cuts and the sale of studios, as part of CEO Asha Sharma's plan to address business challenges and reach a goal of entertaining one billion daily users. This move indicates a strategic shift to streamline operations and ensure the long-term health of the Xbox business.
Microsoft's dumb enough to make a new Quake game in Unreal Engine
Microsoft's Xbox division has announced significant layoffs impacting id Software, raising concerns about the future of the Quake franchise. The author speculates that Microsoft might develop a new Quake game using Unreal Engine 6 instead of id Software's proprietary idTech, potentially alienating long-time fans and disregarding the studio's legacy.
The games industry reacts to Xbox layoffs: 'We are clearly at a turning point'
Microsoft's Xbox division has announced significant layoffs, impacting approximately 3,200 employees and leading to the closure or restructuring of four game studios. This move has drawn widespread reactions from industry figures, expressing shock, sorrow, and anger, with many calling it a turning point for the game industry. The layoffs occur amidst Microsoft's continued investment in artificial intelligence, a decision that has drawn criticism for its perceived prioritization over game development talent.
Report: The “majority” of ID software and up to half of Zenimax online have lost their jobs
Reports 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.
