Layoffs
Ongoing coverage on Layoffs.
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Xbox to reduce workforce by 3,200, five studios to be divested
Xbox announced significant workforce reductions affecting 3,200 employees and the divestment of five studios: Compulsion Games, Double Fine, Ninja Theory, Undead Labs, and Arkane. Compulsion Games and Double Fine will become independent, while Ninja Theory and Undead Labs are set for new ownership to continue development on their respective projects. Xbox CEO Asha Sharma stated the company is refocusing its strategy, acknowledging that it cannot be the best home for every studio.
Microsoft is cutting 3,200 Xbox employees, and half of them will be eliminated today in "the most significant…
Microsoft has initiated significant layoffs within its Xbox division, with approximately 1,600 employees being cut on July 6, 2024, as part of a larger restructuring plan affecting around 3,200 roles by the end of fiscal year 2027. This reduction includes the closure or sale of four studios: Compulsion Games, Double Fine, Ninja Theory, and Undead Labs. The company is also considering strategic options for Arkane Studios.
Microsoft announces 3200 layoffs and four studio departures in "most significant" Xbox restructuring in history
Microsoft 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.
Xbox Layoffs, Studio Closures, And Spin-Offs: Everything Announced Today
Microsoft has announced significant layoffs and studio restructuring within its Xbox division, impacting 3,200 employees over the current financial year, with 1,600 layoffs starting immediately. Several studios, including Compulsion Games and Double Fine Productions, are transitioning back to independent management, while others like Ninja Theory and Undead Labs are seeking new ownership. The company cited financial underperformance and a need to reset its strategy, focusing investment on higher-priority games and core IPs.
Xbox Boss Asha Sharma Announces 3,200 Layoffs, Including 1,600 Today, With 4 Studios Leaving for New Management — Read the Email to Staff in Full
Xbox boss Asha Sharma announced that Microsoft will be laying off 3,200 employees across the Xbox division during the current financial year, with 1,600 of those occurring immediately. As part of this restructure, four studios will be transferred to new management, and one studio is under consultation regarding its future.
Union launches hardship fund for laid off developers
The United Videogame Workers union has launched a hardship fund to assist game developers in the US and Canada affected by recent layoffs. The fund, supported by membership fees and a forthcoming Itch.io charity bundle, offers grants of up to $5,000 for essential living and work-related expenses. This initiative aims to provide immediate financial relief to industry professionals facing job insecurity.
MMO Week in Review: EverQuest rising
This week's MMO news roundup highlights the resurgence of the EverQuest franchise with EverQuest Legends entering paid beta and expansions teased for EverQuest and EverQuest II. Other major stories include the implosion of DreamWorld, potential layoffs at Blizzard and Bethesda, and Sony's shutdown of PS3 and PS Vita storefronts. The article also covers updates and news from various other MMOs like Elder Scrolls Online, Conan Exiles, and Valheim.
Xbox Announces 3,200 Layoffs for Fiscal Year 2027, Four Studios to be Released
Xbox CEO Asha Sharma announced significant layoffs affecting approximately 3,200 employees, with 1,600 layoffs occurring immediately. Four studios—Ninja Theory, Compulsion Games, Double Fine Productions, and Undead Labs—are being released. Sharma cited lower-than-comparable margins and industry hardware challenges as reasons for the restructuring, aiming to reset Xbox's business focus.
Compulsion Games Confirms Retaining Rights to South of Midnight, We Happy Few After Xbox Split
Compulsion Games has confirmed it is returning to independence after its split from Xbox, retaining the rights to its titles South of Midnight, We Happy Few, and Contrast. This news comes amidst widespread layoffs at Xbox, with Compulsion's future now secure despite rumors of closure. The studio aims to continue creating unique games that tell important stories.
Xbox Layoffs Won’t Stop Work on Doom, Quake and Wolfenstein
Despite significant layoffs impacting Xbox and its ZeniMax Media subsidiaries, work on franchises like Doom, Quake, and Wolfenstein will continue. Xbox CEO Asha Sharma confirmed that ZeniMax will not be reduced to only developing Fallout and The Elder Scrolls. The company is also undergoing management restructuring to streamline decision-making processes.
Xbox Appoints Helen Chiang as COO, Studios to Only Have Maximum of 5 Management Layers
Xbox CEO Asha Sharma announced significant changes to the division's operational structure, including reducing management layers to a maximum of five and appointing Helen Chiang as the new Chief Operating Officer. These changes follow recent layoffs affecting approximately 1,200 employees, with plans for further reductions. The restructuring aims to streamline workflows, improve accountability, and refocus investment for future growth, while four studios—Ninja Theory, Compulsion Games, Double Fine Productions, and Undead Labs—are being released from Xbox.
State of Decay 3 Could Skip Game Pass, Third-Party Funding Still Lives – Rumor
A report suggests that State of Decay 3 might not be a day one release on Xbox Game Pass, despite Xbox funding its development, as Undead Labs is reportedly under new ownership. The article also touches on the shifting priorities at Xbox regarding Game Pass funding for third-party developers and the perceived underinvestment in the Minecraft IP.
DOOM, The Elder Scrolls Online Studios “Cutting a Significant Number of Staff” – Rumor
Reports indicate that id Software and ZeniMax Online Studios, both part of ZeniMax Media, are experiencing significant layoffs. While these studios are not closing, a substantial number of staff are being let go. This news follows broader layoffs at Xbox and impacts studios responsible for franchises like DOOM and The Elder Scrolls Online.
Xbox Could Help Studios at Risk to Complete Their Games – Rumor
Rumors suggest Xbox is planning significant cost-cutting measures, potentially leading to layoffs and studio closures. While some studios might go independent or be sold, there's a possibility that affected studios could still complete their announced games. This news comes amid broader industry challenges and discussions about PlayStation ceasing disc production.
Business and Finance
A union has established a hardship fund to support game developers affected by recent layoffs. This initiative aims to provide financial assistance to industry professionals facing job loss.
Comings and Goings
OtherSide Entertainment, the developer behind Thick as Thieves, has been impacted by further layoffs. The extent of the workforce reduction and its specific causes were not detailed in the report.
Rare added to the list of Xbox studios under threat
Rumors 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.
Enginefall developer Red Rover Interactive is making layoffs
Red Rover Interactive has announced layoffs across its UK and Norway offices as part of a restructuring process. The studio, which is developing the survival crafting shooter Enginefall, stated the cuts are intended to place the company on a more sustainable footing for the next phase of development. This news follows a $15 million investment led by Krafton in 2024.
Rockstar workers hit back, PlayStation ditches physical discs, and chipmakers accused of price fixing - Patch Notes #59
Several significant developments have occurred in the gaming industry, including Rockstar Games facing accusations of pay inequity and crunch, Sony's PlayStation preparing to discontinue physical software production in January 2028, and major chipmakers being sued for alleged price-fixing. Additionally, Ubisoft has hired Christoph Hartmann to oversee its Tom Clancy franchises, while Krafton has agreed to pay bonuses to the Subnautica 2 developer Unknown Worlds following a legal dispute and CEO resignation. Microsoft is also reportedly testing a disc-to-digital feature for its Xbox consoles.
Xbox is closing down studios to help fund more Halo claim insiders
Xbox is reportedly planning significant layoffs and studio closures as part of a strategy to reallocate resources towards key franchises like Halo, The Elder Scrolls, and Fallout. Insiders suggest this move aims to revitalize struggling IPs and address issues with post-launch support, particularly for Halo Infinite. Several studios, including Ninja Theory and Double Fine, are rumored to be at risk.
