Layoffs
Ongoing coverage on Layoffs.
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Kwalee lays off the entire Luna Abyss development team as one of this year's overlooked bullet-hell games falls victim to an overcrowded release schedule
Kwalee has laid off the entire development team behind the bullet-hell shooter Luna Abyss, citing an overcrowded release schedule and the game's launch not meeting internal performance targets. Despite positive reviews and a 'very positive' Steam rating, the game failed to gain significant traction. CEO Hollie Emery announced the redundancies, stating the decision was outside the team's control.
Bungie Might Be Facing 50% Staff Reduction, Claims Journalist
Journalist Sylvain Trinel reports that Bungie may be planning significant layoffs, potentially impacting over half of its workforce this summer. These potential cuts follow the conclusion of Destiny 2's development cycle and ongoing challenges with other projects.
Destiny 2 developer Bungie will be halved in size this summer claims source
Bungie is reportedly planning massive layoffs this summer, potentially affecting at least 50% of its workforce, according to journalist Sylvain Trinel. This follows previous rounds of layoffs and comes amid struggles with the game Marathon and a recent surge in popularity for Destiny 2. Sony Interactive Entertainment, which acquired Bungie in 2022, reported a significant impairment loss related to the studio earlier this year.
It just keeps getting worse—Microsoft reportedly already had Ninja Theory in its crosshairs while pushing the…
Microsoft is reportedly planning to close or divest Ninja Theory, despite recently revealing a new game from the studio. An anonymous source suggests this decision was made before the game's announcement, with the reveal intended to attract potential buyers. This move adds to concerns about Microsoft's commitment to its studios and its overall strategy in the gaming industry.
Luna Abyss development team laid off by Kwalee
UK publisher Kwalee has laid off the entire nine-person development team behind its bullet hell shooter, Luna Abyss, less than a month after its May 21, 2026 release. The studio, formerly known as Bonsai Collective, was acquired by Kwalee in September 2025. CEO Hollie Emery stated the decision was outside of the team's control and that all members are now available for new opportunities.
Xbox already planned to shut down Ninja Theory before Senua reveal claims report
A report claims Microsoft planned to close Ninja Theory before the reveal of their new game, Senua, amidst mounting fears of widespread Xbox layoffs. The announcement of Senua, a multiplatform title for PlayStation 5, Xbox Series X/S, and PC, may have been an attempt to attract investors prior to the studio's potential closure or sale. This news follows reports of executive departures and potential closures of other Xbox studios.
Entire Luna Abyss Development Team Laid Off One Month After Launch
The entire development team for the shooter Luna Abyss has been laid off approximately one month after its release. The game had received positive reception prior to the layoffs.
Microsoft Planned Closure of Ninja Theory Before Senua’s Reveal – Rumor
According to a report, Microsoft had planned to close Ninja Theory before the studio revealed its new game, Senua. The trailer was reportedly released to attract potential investors or acquirers for the studio. Despite these plans, it remains unclear if Ninja Theory's leadership was aware of the situation, and negotiations are underway for some studios to spin off rather than close, though layoffs are still expected.
Xbox Shows a “Basic Misunderstanding” of the Gaming Industry, Says Former PlayStation Exec
Former PlayStation Studios boss Shawn Layden believes Xbox's recent actions, including impending layoffs and studio closures, demonstrate a fundamental misunderstanding of the gaming industry. This perspective arises amidst reports of significant financial losses and strategic shifts within Microsoft's gaming division, impacting studios like Ninja Theory, Double Fine, and Compulsion Games.
Luna Abyss Team Has Been Laid Off, Says Kwalee Labs CEO
Kwalee Labs has laid off the development team behind the game Luna Abyss, citing reasons "out of our control." The CEO expressed gratitude for the game's reception and the team's hard work, despite the closure. Luna Abyss is available on Xbox Series X/S, PlayStation 5, and PC.
Luna Abyss Developers Laid Off Just Weeks After Launch
Kwalee Labs has laid off the entire development team behind its first-person horror shooter Luna Abyss, just weeks after its release on Xbox Series X|S, PlayStation 5, and PC. CEO Hollie Emery confirmed the redundancies for undisclosed reasons, stating the team is now available for new opportunities. Despite positive critical reception and a strong initial player count on Steam, the game saw a significant drop-off in concurrent players.
Less than a month after launch, the entire Luna Abyss team has been laid off
Less than a month after its release, the entire development team behind the game Luna Abyss has been laid off by publisher Kwalee. CEO Hollie Emery announced the redundancies, stating the decision was outside of the team's control. Luna Abyss is a first-person bullet-hell platforming adventure game.
The Internet is calling out Microsoft for carrying out the Red Wedding of gaming
The internet is criticizing Microsoft's recent actions, drawing parallels to the 'Red Wedding' from Game of Thrones, likely referring to significant layoffs within the gaming division. This event has sparked widespread discussion and negative sentiment among gamers and industry observers.
Amid reports of closures to Ninja Theory and Compulsion Games, Xbox Game Studios CEO Craig Duncan is stepping down from…
Xbox Game Studios CEO Craig Duncan and chief of staff Louise O'Connor are stepping down amid reports of significant layoffs and the closure of studios like Ninja Theory, Compulsion Games, and Double Fine. Duncan, who previously led Rare for 14 years, had been CEO for less than two years. These changes follow a strategic "Xbox reset" outlined by CEO Asha Sharma.
Microsoft nearly killed former Uncharted 4 and The Last of Us director's new game, but he managed to save it after the first trailer, fellow Naughty Dog vet says: "It was game over"
Bruce Straley's new game, Coven of the Chicken Foot, developed by his studio Wildflower Interactive, faced cancellation when Microsoft abruptly pulled its funding in July 2025. However, a trailer released during The Game Awards attracted new investors, saving the project. This incident highlights the volatile nature of game development funding, even for experienced creators like Straley, who previously co-directed The Last of Us and Uncharted 4.
Xbox Game Pass Soldiers on With June 2026 Wave 2 Lineup Announcement
Microsoft 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.
What the heck are you playing at, games industry?
The article criticizes the recent surge in video game studio closures and layoffs, highlighting numerous studios shut down by major publishers like Ubisoft, EA, Embracer, Sony, and Microsoft. It questions the business strategies of these publishers, particularly Microsoft's handling of Ninja Theory and the high development cost of Xbox exclusives like Gears of War E-Day, while also pointing to the industry's pursuit of live services and infinite growth over sustainable development.
Rumour: Gaming Industry 'Bloodbath' Imminent, as Sony, Microsoft, and More Brace for Mass Layoffs
A report suggests that the gaming industry is facing imminent mass layoffs, with major publishers like Sony and Microsoft potentially cutting entire studios. French journalist Sylvain Trinel indicated that the current situation at Xbox is just the beginning of a larger 'bloodbath' for studios, also highlighting concerns for companies like Don't Nod, Quantic Dream, id Software, Bethesda, and BioWare. Speculation also points to potential issues for PlayStation studios such as Media Molecule and Bend Studio.
Aphelion and Life is Strange developer Don't Nod in trouble as it struggles to secure funding for its next project
French studio Don't Nod, known for Life is Strange and Aphelion, is facing financial difficulties and may run out of cash by November as co-owner Tencent is unwilling to fund its next project or increase its stake. The company is seeking other publishers for funding, but discussions have not yet yielded commitments. This situation could lead to layoffs and a scaled-back development scope for its upcoming game, Project P14.
Psychonauts dev Double Fine responds to reports that Microsoft is shutting down the studio amid Xbox cuts
Reports indicate Microsoft is considering closing Double Fine Productions, along with Compulsion Games and Ninja Theory, as part of cost-cutting measures within its Xbox division. While no official announcement has been made, Double Fine's social media response suggests uncertainty about the studio's future and potential independence.
