Layoffs
Ongoing coverage on Layoffs.
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"Unconscionable": The day of Bethesda's Fallout reveal explosion, its laid-off Montreal devs were told they "would receive the smallest severance legally possible" and "immediately" lose health insurance benefits, union says
Bethesda's Montreal union, OneBGS, claims that laid-off developers are being offered the minimum legally required severance pay and are losing health insurance immediately. This is occurring despite parent company Microsoft's significant profits and investments in the intellectual property the developers helped create. The union has filed a legal complaint against Bethesda for alleged labor law violations.
The Elder Scrolls Online is struggling with "team bandwidth" after Xbox layoffs hit Bethesda and ZeniMax, leading devs to limit a store for in-game items
The Elder Scrolls Online developers are facing "team bandwidth" issues following layoffs at Bethesda and ZeniMax, impacting the game's features. To manage the workload, the Web Crown Store has been removed from the official website, though in-game purchases remain available. Changes are also being made to the Crown Store blog due to capacity limitations.
"The goal is to provide what we can": Elder Scrolls Online Crown Store undergoing changes due to "team bandwidth" in wake of Xbox layoffs
The Elder Scrolls Online is making changes to its Crown Store, including the removal of the web-based store, due to team bandwidth issues following recent layoffs at Microsoft and ZeniMax. Players will now need to log into the game to browse and purchase items, and the monthly Crown Store Showcase blog will become more list-like. Community manager Kevin Gbolie stated these adjustments are necessary to manage workload, with the goal of continuing to provide content despite reduced capacity.
Bethesda reportedly canceled an unannounced PvP shooter, likely from Wolfenstein dev MachineGames
A former Bethesda employee revealed that the publisher canceled an unannounced PvP shooter, likely developed by MachineGames. This project, possibly codenamed 'Project Platinum,' was reportedly in development between 2021 and 2025. Despite this cancellation and recent layoffs, rumors suggest that Wolfenstein 3 is still in development.
The Elder Scrolls Online is already feeling the impact of Xbox's layoffs, ironically hurting the cash shop
Following recent layoffs at ZeniMax, The Elder Scrolls Online is already experiencing operational changes due to reduced staff. Community manager Kevin Gbolie announced the removal of the web-based Crown Store and modifications to the monthly Crown Store Showcase blog to manage workload. These changes highlight the ironic impact of the layoffs on the game's premium cash shop operations.
Union accuses Microsoft of unlawfully laying off staff in legal action
The Communication Workers of America (CWA) union has filed an unfair labor practice complaint against Microsoft, alleging unlawful layoffs and bad-faith bargaining. CWA Canada has also taken legal action regarding employee dismissals at Bethesda Game Studios Montreal. Microsoft stated they are committed to the bargaining process and supporting affected employees.
Forza Horizon 5’s ex-creative director pins Xbox’s turmoil on Game Pass
Mike Brown, former creative director for Forza Horizon 5, suggests that Xbox's recent turmoil, including layoffs and project cancellations, stems from Game Pass failing to meet subscriber and revenue targets. He argues that Microsoft invested heavily in the subscription service and studio acquisitions based on projections that did not materialize, leading to financial strain.
EMPULSE, Splitgate Studio Hit With New Round of Layoffs
1047 Games, the developer behind Splitgate and EMPULSE, has undergone a third round of layoffs, affecting multiple employees including art and QA staff. This follows previous layoffs last year and comes shortly after the release of their new game, EMPULSE, which is currently in Early Access on PC, PlayStation 5, and Xbox Series X/S. The studio continues to support Splitgate: Arena Reloaded despite low player counts on Steam.
Halo’s PlayStation Debut Could Also Be Its Farewell
Microsoft's Xbox division is undergoing a significant strategic shift, moving away from broad multi-platform releases like Halo: Campaign Evolved towards a renewed focus on console exclusivity. This change, spearheaded by CEO Asha Sharma, involves scaling back the Xbox division and potentially canceling unannounced titles, though games already expected on other platforms will proceed. The article analyzes the implications of this shift for future Halo titles and the broader gaming landscape, considering factors like sales, player acquisition, and potential exclusive benefits for Xbox players.
Forza Horizon 5 Creative Director Says Xbox Game Pass Was “A Good Idea”
Former Forza Horizon 5 creative director Mike Brown believes Xbox Game Pass was a good concept that ultimately failed due to insufficient subscriber numbers needed to sustain its business model. He expressed sadness over the potential studio closures and job losses resulting from this outcome. Brown also defended Xbox employees amidst criticism and recent layoffs, emphasizing that the core idea of Game Pass was player-focused, though it did not reach the scale required to justify major acquisitions like Activision Blizzard.
Comings and Goings
Microsoft is accused of unfair labor practices by a union alleging unlawful layoffs at Xbox. Separately, Disney has laid off hundreds of employees, with Pixar being significantly impacted.
Less than a month after launching Empulse, it looks like Splitgate dev 1047 Games are laying off more staff
1047 Games, the developer behind Splitgate, has reportedly conducted a third round of layoffs following the recent launch of their new game, Empulse. Several employees have shared their departures on LinkedIn, citing the studio's ongoing financial difficulties. The exact number of affected staff is currently unknown.
Splitgate studio 1047 Games is laying off more people just a month after releasing its latest game
Developer 1047 Games has reportedly conducted a third wave of layoffs, affecting employees just a month after the release of their latest game, Empulse. This follows previous workforce reductions and struggles to replicate the success of their earlier title, Splitgate: Arena Warfare. Empulse, priced at $20, has not achieved significant player numbers on PC.
Ex-Forza Horizon Director Traces a Line From the Failure of 'Well-Meaning' Game Pass to the Current Xbox Layoffs
A former Forza Horizon developer suggests that recent Xbox layoffs and studio closures are a direct consequence of Game Pass failing to meet Microsoft's subscriber targets. This shortfall allegedly led to unsustainable spending on content, resulting in the current restructuring.
Report: Splitgate dev 1047 games lays off staff
1047 Games, the developer behind the Splitgate series, has reportedly conducted a third wave of staff layoffs. This follows the recent release of their latest shooter, Empulse, and comes nearly a year after a previous round of layoffs and the original Splitgate's shutdown to focus on its sequel. CEO Ian Proulx had previously expressed ambitions for Splitgate 2 to maintain a large player base for a decade.
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.
