Layoffs
Ongoing coverage on Layoffs.
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Another former Xbox studio is "independently owned, again" after Microsoft shut it down in 2024
Alpha Dog Games, a studio previously shut down by Microsoft in 2024, has reemerged as an independently owned entity. Studio founder Shawn Woods updated his LinkedIn profile to reflect the change, indicating the studio regained independence in May 2025. This follows a trend of studios becoming independent after Microsoft's recent closures and layoffs.
"The concept of [Xbox] Game Pass was good" despite its eventual faceplant now contributing to mass job losses, reckons Forza Horizon 5 director
Mike Brown, former creative director for Forza Horizon 5, believes the concept of Xbox Game Pass was fundamentally good, despite its current struggles leading to significant layoffs within Microsoft's gaming division. He suggests that while the service was a well-intentioned, player-focused idea, it failed to gain enough subscribers at the necessary price point to be financially viable. Brown also defended Phil Spencer and Sarah Bond, acknowledging their roles in the Game Pass push while noting the harsh criticism they face on social media.
What sense can we make of the madness at id Software?
id Software, known for Doom and Quake, has laid off 136 employees, over half its workforce, amidst broader industry cuts at Microsoft. Conflicting reports suggest the studio is starting a new Doom game and its id-tech engine remains active, despite fears of it becoming a support studio. The article analyzes the potential reasons behind these drastic layoffs, including project phasing and cost-cutting, while also questioning Microsoft's strategy and the impact on team morale and institutional experience.
“Current and Former” Employees Disagree With DOOM Co-Director’s About id’s Current State
Current and former id Software employees have disputed co-director Hugo Martin's claims that the studio was not significantly impacted by recent Xbox layoffs. Developers expressed that approximately 50% of the workforce was cut, leading to a feeling that their contributions were undervalued and that the team has been 'nerfed'. The article also touches on past development challenges, including significant crunch and turnover during the creation of DOOM (2016).
In the age of AI and layoffs, playing old games in 2026 is about more than nostalgia
In 2026, the author finds solace in playing older video games as a coping mechanism against the backdrop of AI advancements and widespread layoffs in the industry. This retreat into retro titles like Pokemon Leaf Green and Diablo 2 offers a sense of comfort and nostalgia, providing a temporary escape from the anxieties surrounding the current state of game development and corporate practices. Despite the industry's challenges, the author finds a glimmer of optimism in the progress made regarding representation, workplace conditions, and unionization.
Union slams Microsoft for "unfair labor practice", alleging Xbox "unlawfully" laid off staff
Microsoft's Xbox division is facing accusations of unfair labor practices, including unlawfully laying off staff without proper union notification or discussion. The Communications Workers of America (CWA) has filed complaints alleging refusal to bargain and coercive actions. Meanwhile, Netflix reported a 600% surge in kids' game engagement, driven by its dedicated mobile app, and expressed confidence in scaling its cloud gaming offerings.
After Doom director Hugo Martin denied reports that id Software had been gutted, "current and former employees" are disagreeing with his optimism
Current and former employees of id Software are disputing director Hugo Martin's optimistic statements following recent layoffs at the studio. Sources claim that a significant portion of the Doom (2016) development team was let go, contradicting Martin's assertion that the studio was not "gutted." These employees expressed disappointment, feeling their contributions were undervalued, and highlighted past struggles like the development of Doom 4 as evidence of the studio's fragility.
"Professional lurker" Todd Howard reappears on internet forums following Bethesda's Fallout and Elder Scrolls announcements to thank fans for their support
Bethesda Game Studios leader Todd Howard has returned to Reddit after a six-month absence to thank fans for their support following recent announcements about Fallout and The Elder Scrolls projects. Howard stated that the studio is actively listening to community feedback and that many ideas come from Reddit discussions. This comes amidst news of layoffs within the Xbox division and a renewed focus on Bethesda's major franchises.
Two thirds of remaining Doom (2016) devs laid off during latest round of Xbox cuts
Despite id Software co-director Hugo Martin's claims that the studio is the same size as it was during Doom (2016)'s development, current and former employees allege that approximately two-thirds of the Doom (2016) development team was laid off during recent Xbox cuts. These sources feel Martin's statement misrepresents the impact of losing significant talent and institutional knowledge, potentially affecting future game development.
MMO Week in Review: Lament for Elder Scrolls Online
Microsoft's decision to lay off a significant portion of The Elder Scrolls Online team has led to further management turnover and a restructuring of the studio. This week's MMO news also covers the early access launch of SpiritVale, the cancellation of Final Fantasy XIV Mobile, and discussions on lessons for Guild Wars 3.
Bethesda’s Layoffs Were “Really Tough”, Lets It “Focus Best” On its Franchises, Says Todd Howard
Bethesda's Todd Howard described the company's recent layoffs as a difficult experience, stating that the studio will now focus on its core franchises like The Elder Scrolls and Fallout. He also expressed excitement about working with Obsidian Entertainment again on new Fallout projects, including remasters of Fallout 3 and Fallout: New Vegas, while confirming Fallout 5 remains a long-term goal. The article also touches on industry-wide layoffs affecting Xbox and its studios.
Fallout 5, Remasters and New Games Confirmed, But Can They Save Bethesda?
Bethesda has outlined its future game development plans, confirming Fallout 5 is in pre-production and remasters of Fallout 3 and Fallout: New Vegas are coming. The Elder Scrolls 6 remains the primary focus, with Starfield set to receive ongoing updates and new content. The studio also addressed recent layoffs and fan concerns about its direction.
Bethesda Director Todd Howard Says He Has No Plans to Retire Anytime Soon
Bethesda game director Todd Howard stated in an interview that he has no immediate plans for retirement, citing his passion for his work and colleagues as motivation. He also touched upon the recent layoffs at Bethesda, describing it as a difficult period for the company. Howard is currently leading development on The Elder Scrolls 6 and is involved with new Fallout projects, including remasters and Fallout 5.
Call of Duty movie will be set in the Modern Warfare universe
The upcoming Call of Duty movie will be set in the Modern Warfare universe, as confirmed by director Peter Berg. Activision producer Rob Kostich emphasized the importance of authenticity and epic scope for the film, which is slated for a June 30, 2028 release. In other news, Marathon director Joe Ziegler has departed Bungie, passing leadership to Del Chafe III and Julia Nardin amidst ongoing studio layoffs and legal disputes.
Marathon director Joe Ziegler leaves Bungie just four months after launch
Joe Ziegler, the director of Bungie's upcoming game Marathon, has departed the studio after three and a half years. He announced his last day was July 17th and that he is passing the game director role to Del Chafe III and Julia Nardin. This news comes amidst ongoing controversy for Bungie, including recent layoffs affecting hundreds of employees across multiple teams.
Bethesda confirms new Fallout 76 expansion, closer partnership with ZOS on Elder Scrolls franchise
Bethesda Game Studios and ZeniMax Online Studios have confirmed a major expansion for Fallout 76 titled Raven Rock, serving as a prequel to Fallout 3. The studios are also entering a closer partnership on the Elder Scrolls franchise, with The Elder Scrolls VI being a priority. Additionally, Fallout 5 is in pre-production, and Bethesda is collaborating with Obsidian Entertainment on a new Fallout project and remasters of Fallout 3 and Fallout: New Vegas.
ZA/UM announces layoffs two months after the launch of Zero Parades
ZA/UM, the studio behind Disco Elysium, has announced layoffs affecting up to 32 employees. This news comes two months after the launch of their latest game, 'Disco Elysium: The Final Cut'.
Disco Elysium Dev ZA/UM Announces Layoffs Affecting Up to 32 Staff
Disco Elysium developer ZA/UM has announced layoffs affecting up to 32 staff. This news comes just two months after the studio launched its latest game, Zero Parades: For Dead Spies.
ZA/UM are set for more layoffs only two months after launching Zero Parades: For Dead Spies
ZA/UM is reportedly laying off over 30 employees, approximately one-third of its studio, just two months after the release of Zero Parades: For Dead Spies. The company cited the game's commercial performance as the reason for the layoffs, despite its critical acclaim. This follows previous controversies and the formation of the ZA/UM Workers' Alliance, the UK's first recognized video game union.
I'm not worried about Fallout: New Vegas 2, because Obsidian knows how to make the best out of a bad situation
Despite recent layoffs and a history of challenging publisher relationships, Obsidian Entertainment is well-positioned to create a successful Fallout: New Vegas sequel. The studio has a proven track record of delivering excellent RPGs, even under difficult circumstances, and has demonstrated its ability to capture the essence of Fallout with games like The Outer Worlds. The author expresses confidence that Obsidian's talent and experience will allow them to overcome current instability and deliver another acclaimed title.
