Layoffs
Ongoing coverage on Layoffs.
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After 37 years at Microsoft, veteran who led Xbox Backward Compatibility program has been laid off: "I look forward…
Kevin LaChappelle, a 37-year Microsoft veteran who led the Xbox Backward Compatibility program, has been laid off as part of the company's recent wave of job cuts. LaChappelle confirmed his departure on LinkedIn, highlighting his fondest memories leading the team that developed the backward compatibility feature for Xbox 360 games on Xbox One, which was first announced at E3 2015. He also led the team responsible for Xbox's Cloud Gaming product.
Doom: The Dark Ages DLC lands to rave Steam reviews as id Software reportedly faces losing half its staff: "It may very well be the last piece of good Doom content that we ever get"
The new Doom: The Dark Ages DLC is receiving positive reviews on Steam, with players praising its faster-paced gameplay. However, its release coincides with significant layoffs at developer id Software, with reports indicating around half of the studio's staff have been let go by Microsoft. Many reviews acknowledge the layoffs, with some expressing concern that this could be the last significant piece of Doom content.
Xbox boss Asha Sharma pins layoffs on Phil Spencer's regime spreading the company "too thin", while claiming a "a healthy Xbox" could weather the RAM storm
Xbox CEO Asha Sharma attributes recent layoffs and studio closures to a strategy of spreading resources too thin under Phil Spencer's leadership. Sharma suggested that a healthier Xbox would have been better equipped to handle the current hardware crisis, implying that the company's current struggles are a direct result of past strategic decisions.
Microsoft is reportedly considering making more of its first-party games exclusive to Xbox
Microsoft is reportedly considering making more of its first-party games exclusive to Xbox consoles to incentivize purchases. While major multiplayer titles will remain multiplatform, upcoming games like Gears of War: E-Day and Clockwork Revolution are confirmed Xbox console exclusives, with The Elder Scrolls 6 potentially following suit. This strategy shift comes amidst significant layoffs and studio closures within Microsoft's gaming division.
Man behind Xbox backwards compatibility laid off as 25% of Obsidian devs cut
Microsoft has laid off Kevin LaChapelle, the key figure behind Xbox's backwards compatibility and cloud gaming features, as part of broader cuts affecting 3,200 employees. Several development studios, including Compulsion Games and Double Fine, have become independent or are being sold off. Approximately 25% of Obsidian Entertainment's staff has also been impacted by these layoffs.
"Workers deserve protection, not to be treated like disposable line items" – Hundreds of union members affected by Xbox layoffs
Hundreds of union members from the Communication Workers of America were impacted by recent layoffs at Xbox, which saw 3,200 positions eliminated and five studios divested. The CWA is pursuing legal and contractual actions to protect affected workers, including bargaining for severance and recall rights. Union leaders criticized Microsoft's treatment of employees and expressed disappointment with slow progress on contract negotiations, while Xbox leadership cited strategic overextension as a reason for the cuts.
'Used, abused, and discarded:' CWA Canada slams Microsoft over handling of Bethesda layoffs
CWA Canada has criticized Microsoft and Bethesda Game Studios over recent layoffs affecting unionized employees at Bethesda Game Studios Montreal. Union president Carmel Smyth stated that around a dozen employees, some with up to a decade of service, were informed of their termination via a brief video call. The union plans to pursue bargaining for severance, internal placement, and recall rights for affected workers.
The Elder Scrolls 6 will be lucky to be out by 2028 says insider
An insider claims that The Elder Scrolls 6, announced in 2018, is still at least two to three years away and may not launch until 2028 or later, partly due to recent Xbox layoffs impacting Bethesda Game Studios. This potential 10-year development cycle from announcement to release highlights management issues and a significant gap since the last main installment, Skyrim.
Evening Reading - July 7, 2026
This edition of Evening Reading covers various gaming news, including IO Interactive regaining ownership of Project Fantasy and announcing layoffs, PlayStation facing complaints about its disc controversy, and updates on Marvel Rivals and Guilty Gear Strive. The article also highlights indie game Cosmodrill and discusses the broader gaming industry landscape.
Business and Finance
Senator Bernie Sanders has expressed concern over recent layoffs within the gaming industry, particularly those affecting Xbox. Meanwhile, GameStop stockholders approved proposals at their annual meeting, including increased share authorization, as the video game industry faces ongoing challenges.
Game History and Preservation
A former designer for The Elder Scrolls Online expressed dismay over the impact of recent layoffs on game preservation efforts. The designer lamented that the industry's workforce reductions have left insufficient personnel to maintain and preserve game history.
All Access
Xbox has conducted layoffs impacting its accessibility leadership team, raising concerns about Microsoft's ongoing commitment to accessibility initiatives. The article questions the future of these efforts following the staff reductions.
The Elder Scrolls Online’s Former Content Designer Says The Team “Deserved Much Better”
Former content designer Andrew Young expressed disappointment over recent layoffs at Zenimax Online Studios, stating the team deserved better and that the studio may not have enough staff left to maintain its content roadmap. Xbox CEO Asha Sharma confirmed widespread layoffs across the division, with more planned, while announcing leadership changes within the Xbox division.
Xbox Layoffs Includes Backwards Compatibility Program and Cloud Gaming Lead
Xbox has undergone significant layoffs, impacting key figures like Kevin LaChapelle, vice president of Xbox Platform, who oversaw cloud gaming and the Xbox Backwards Compatibility Program. This move raises concerns about the future of game preservation and backwards compatibility efforts within the company, following earlier announcements of ending the program and then forming a new team for it. The layoffs also affected several studios, including Undead Labs, Ninja Theory, Double Fine Productions, and Compulsion Games.
id Software Suffers 90 Layoffs, “Most (If Not All) Coders” and QA Department Let Go – Rumor
id Software has reportedly laid off 90 employees, approximately 50% of its staff, including its entire QA department. This move is part of Xbox's broader "reset" plan, which has already led to significant job cuts across its gaming divisions. The layoffs come shortly after the release of DOOM: The Dark Ages' expansion, Revelations, for PC and current-generation consoles.
IO Interactive Shuts Down Istanbul Studio After Project Fantasy Deal With Xbox Falls Through
IO Interactive has announced the closure of its Istanbul studio and layoffs due to the collapse of a funding deal with an external partner for Project Fantasy. The studio has regained full ownership of Project Fantasy and plans to continue its development independently. This decision was made to ensure the long-term survival of IO Interactive as an independent AAA developer and publisher.
Games Inbox: Will Sony do a U-turn on PS5 discs?
Readers discuss Sony's potential shift to digital-only for the PlayStation 5, with speculation that Rockstar Games' desire for full profits from Grand Theft Auto 6 might be a factor. The article also touches on layoffs at id Software and the business strategies of Microsoft and Xbox, questioning their long-term viability.
Xbox layoffs hit accessibility leadership, calling into question Microsoft's continued commitment to accessibility…
Microsoft's Xbox division has undergone significant layoffs, impacting leadership roles in accessibility and raising concerns about the company's commitment to inclusive gaming initiatives. Despite assurances from Microsoft that accessibility remains a priority, the departure of key personnel involved in projects like the Xbox Adaptive Controller and accessibility training programs casts doubt on future efforts.
Destiny 2 isn't fully dead yet: community manager says the devs who weren't laid off are still working on "maintenance/upkeep" and "a small fix could sneak in here or there"
Despite significant layoffs at Bungie and the end of new content for Destiny 2, the game will continue to receive server maintenance and occasional hotfixes for critical issues. A community manager confirmed that while major updates are finished, the team will still address game crashes and perform upkeep, with the possibility of small fixes being implemented.
Bernie Sanders is mad about the Xbox layoffs
US Senator Bernie Sanders has criticized Microsoft and Xbox following recent layoffs, highlighting the company's significant profits and executive compensation. Sanders argued that corporate tax breaks do not create jobs and that the layoffs, coupled with a price increase for Xbox, demonstrate a flawed economic system. The article also references Sanders' past criticism of Bobby Kotick and the FTC's opposition to Microsoft's acquisition of Activision Blizzard.
