Layoffs
Ongoing coverage on Layoffs.
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If knowledge if power, why are game companies setting it alight?
Recent waves of layoffs in the video game industry, including significant cuts at Microsoft, are leading to a devastating loss of institutional knowledge. This collective wisdom, crucial for development workflows and efficiency, is often undocumented and passed between colleagues. Companies like Nintendo are highlighted as prioritizing the preservation of this knowledge, while others risk reinventing the wheel and facing increased crunch due to employee turnover.
200 million new Xbox players weren't enough to offset falling revenue in its latest fiscal year, CEO says: "We…
Despite attracting over 200 million new players to Xbox and its games in fiscal year 2026, Microsoft's gaming division experienced a decline in revenue. CEO Asha Sharma acknowledged the gap between audience growth and business performance, stating that investments in player value are expected to drive growth by the end of fiscal year 2027. The company also underwent significant restructuring, including layoffs and spinning out several first-party studios.
Xbox reports 10 percent drop in revenue across content and services following mass job cuts and studio offload
Microsoft's Xbox division reported a 10 percent decrease in revenue from content and services during the last financial quarter. This decline follows significant layoffs and the divestment of several development studios. CEO Satya Nadella indicated that necessary decisions are being made to reset the business for long-term growth, with a projected return to growth in fiscal year 2027.
Xbox revenue plunges $1.7bn, with hardware dropping 29% YoY
Microsoft's latest financial results reveal a significant 7% year-on-year decline in Xbox revenue for the full year and 10% in the fourth quarter, primarily driven by a 29% drop in hardware sales. Despite growth in Game Pass, content and services revenue also fell by 10%. The company announced widespread layoffs affecting 4,800 roles, including 1,600 at Xbox, as part of a restructuring aimed at long-term growth, with several studios transitioning to new management or becoming independent.
“Necessary Decisions” Are Being Made to Reset Xbox for Long-Term Growth, Says Microsoft CEO
Microsoft CEO Satya Nadella stated that "necessary decisions" are being made to reset Xbox for long-term growth, citing a 10 percent revenue decline in the last quarter. The company plans to diversify its business across subscriptions, ads, and digital stores, and expand to new ecosystems. This strategy follows recent layoffs and the divestment of four studios: Compulsion Games, Double Fine Productions, Ninja Theory, and Undead Labs.
Last Sentinel Sees Shift in “Creative and Development Direction” as Lightspeed LA Faces Layoffs
Lightspeed LA has announced a shift in the creative and development direction for its game Last Sentinel following internal reviews, leading to layoffs affecting approximately 80 employees. The studio, owned by Tencent, stated that North America remains a cornerstone of its global gaming strategy and its long-term commitment is unchanged.
EA CEO Received Over $38 Million in Bonuses Despite Layoffs Due to Battlefield 6’s Success
Electronic Arts CEO Andrew Wilson received over $38 million in bonuses and stock awards despite recent layoffs, with other executives also receiving substantial compensation. These bonuses were reportedly tied to the success of titles like Battlefield 6 and EA Sports FC, and come as EA is undergoing a $55 billion acquisition by a consortium including Saudi Arabia's PIF, Silver Lake, and Affinity Partners. The deal faces potential scrutiny from the US FTC regarding labor markets and job safeguarding.
Xbox Revenue Fell by 10 Percent in Last Quarter
Microsoft's Xbox division experienced a 10 percent revenue decrease last quarter, coinciding with significant layoffs across the division. While overall Microsoft revenue increased by 18 percent due to cloud services like Azure, the Xbox content and services segment, along with the Windows OEM and Devices division, saw declines. As part of restructuring, Xbox divested four studios: Compulsion Games, Double Fine Productions, Undead Labs, and Ninja Theory.
Battlefield 6's Record-Breaking Success Earns EA CEO $38 Million Payday, But Laid-Off Devs Aren't Around to Celebrate
Electronic Arts CEO received an $8 million raise due to the strong performance of Battlefield 6. This comes four months after developers who worked on the game were laid off. The article highlights the disparity between executive rewards and the treatment of development staff.
EA Handed Its CEO $38.6 Million In The Same Year It Cut Battlefield 6 Staff
Electronic Arts CEO Andrew Wilson received $38.6 million in compensation during the same fiscal year the company conducted layoffs across its Battlefield development teams. Despite the cuts, EA reported a record net revenue of $7.531 billion, driven by the successful launch of the Battlefield franchise, which reportedly outsold a Call of Duty title released in the same year.
Xbox just had its worst quarter in years
Microsoft reported a significant 10% decline in Xbox content and services revenue for its fourth fiscal quarter, marking the worst quarter for Xbox revenue since Q1 2024. Hardware revenue also saw a 13% drop, contributing to a total Xbox revenue of $4.983 billion. The report also mentions severance expenses due to layoffs, partially offset by other cost-saving measures, while the company's overall revenue was boosted by AI investments.
Microsoft (MSFT) spent $4.579 billion on share buybacks during Q4 2026
Microsoft spent $4.579 billion on share buybacks in the fourth quarter of its 2026 fiscal year, bringing the total for the year to $22.271 billion. This spending comes as the company also conducted layoffs. The company's Q4 earnings surpassed analyst expectations.
EA CEO Andrew Wilson's FY2026 compensation increased by $8 million YoY on Battlefield 6's success
Electronic Arts CEO Andrew Wilson's compensation for fiscal year 2026 increased by over $8 million, reaching approximately $38 million. This rise is attributed to the business performance driven by Battlefield 6, despite recent layoffs within Battlefield Studios. The company disclosed these details in a filing with the US SEC, noting the game's continued player activity.
EA CEO Got A Huge Pay Increase While Company Laid Off Devs
Electronic Arts CEO Andrew Wilson received a $30 million increase in compensation, bringing his total to $38 million for the fiscal year, while the company simultaneously laid off developers from its Battlefield Studios banner. Other executives also saw significant pay increases, with Laura Miele, Stuart Canfield, Jake Schatz, and Mala Singh receiving millions in compensation. The company's financial disclosures also highlighted its AI strategy and the performance of Battlefield 6, amidst ongoing discussions about its potential sale to Saudi Arabia's Public Investment Fund.
Despite Battlefield 6 layoffs, EA paid its CEO 305x more than its average employee last year thanks to an $8 million bonus increase — and he could net another $125 million in severance as buyout looms
Electronic Arts CEO Andrew Wilson earned 305 times the average employee's salary in fiscal year 2026, with his total compensation reaching $38.6 million, an increase of over $8 million from the previous year. This comes despite recent layoffs at Battlefield 6 studios. Wilson could also be eligible for an additional $125 million in severance if EA is acquired, a deal reportedly being considered by a consortium including the Public Investment Fund, Silver Lake, and Affinity Partners.
After laying off Battlefield 6 developers, EA pays its CEO $38 million because Battlefield 6 did so well
Electronic Arts CEO Andrew Wilson received over $38 million in compensation for the 2026 fiscal year, largely due to the success of Battlefield 6. This comes despite the company laying off developers who worked on the game and other titles. Wilson's compensation ratio to the median employee also increased significantly.
Business and Finance
Electronic Arts CEO Andrew Wilson's bonus increased to $38 million last year, an $8 million rise, following the success of Battlefield 6. This news comes after layoffs of developers working on the game.
Comings and Goings
Lightspeed LA has undergone staff layoffs and is shifting the creative direction of its upcoming game, Last Sentinel. The studio's actions were reported by IGN, highlighting changes within the development team and the project's focus.
Tencent-owned Lightspeed LA is laying off staff
Lightspeed LA, a subsidiary of Tencent's Lightspeed Studios and developer of Last Sentinel, has laid off approximately 80 employees. The studio cited a shift in creative and development direction for the project following internal reviews. Lightspeed Studios remains committed to its North American operations and global gaming strategy.
Double Fine Cuts 25% Of Staff After Separating From Microsoft
Double Fine has laid off 25% of its staff, approximately 23 employees, following its separation from Microsoft and regaining independence. Studio head Tim Schafer stated the cuts were necessary to scale the studio to a sustainable size. Microsoft had divested five studios, including Double Fine, earlier this month.
