Layoffs
Ongoing coverage on Layoffs.
Latest coverage
Thick as Thieves Studio Hit With More Layoffs, Left With “Fewer Than 10” Employees
OtherSide Entertainment has undergone further layoffs, reducing its staff to fewer than 10 employees, who are now focused solely on maintaining the co-op stealth game Thick as Thieves. The studio has no plans for future games following the cancellation of a project codenamed Argos and a reduction in scope for Thick as Thieves, which was originally envisioned as a PvPvE immersive sim. The studio's director, Jeff Hickman, stated that the current industry landscape makes their signature lengthy development cycles for immersive sims commercially unviable.
Sea of Thieves Developer Rare is “On the Block” Ahead of Xbox’s Mass Layoffs – Rumor
Reports suggest that Sea of Thieves developer Rare may be affected by upcoming mass layoffs at Xbox, potentially impacting over 1,000 staff. While the studio's closure is not confirmed, this follows previous restructuring after the cancellation of Everwild. Layoffs are reportedly expected around July 6th.
Destiny 2 community manager calls out "leaders who made multiple years of poor decisions" as former Bungie VP shares post blaming industry implosion on the market
Destiny 2 community manager Dylan Gafner responded to a discussion about the games industry's current state, suggesting that leadership's poor decisions over multiple years are a significant factor, not just market conditions. This comes after former Bungie VP Mark Noseworthy shared a post that placed blame primarily on the market. Gafner clarified his comments were not a personal attack but stemmed from conversations with former colleagues affected by recent Bungie layoffs.
'Fewer than 10' employees remain at Thick as Thieves studio following another round of layoffs
OtherSide Entertainment has laid off 18 employees, with fewer than 10 remaining, following a previous round of 17 cuts two weeks prior. The studio cited the challenging market for immersive sim games and the commercial non-viability of continuing in its current shape, despite the positive reception to Thick as Thieves' introductory campaign. The studio has no plans for future games and will focus on updates for Thick as Thieves.
Destiny 2’s next patch is delayed into next week thanks to Bungie’s mass layoffs
Bungie has delayed the next patch for Destiny 2 into next week due to recent mass layoffs impacting the development team. The patch, which focuses on bug fixes, was originally scheduled for Tuesday. Some of the fixes included in the delayed patch were being worked on by employees who were let go.
Discussing unionization, layoffs, and monetization
A Game Developer podcast episode, featuring analysts from GDC and Omdia, discusses key findings from the GDC 2024 State of the Game Industry report. The conversation covers trends in monetization, industry layoffs, and conglomeration, as well as developer opinions on unionization, with younger developers showing significantly higher support.
Ten Questions and Answers About the Games Industry in 2024
Omdia's expert games analysts will discuss pressing industry questions for 2024 in a webinar preparing attendees for GDC. Key topics include the reasons behind industry layoffs, the impact of subscription services on player behavior, and developers' current and future spending plans, all supported by Omdia's data.
Analyzing the 2026 GDC State Of The Industry Report
The 2026 GDC State of the Industry Report, compiled by GDC Festival of Gaming, offers new insights into game development by expanding its survey pool and modifying its format. This episode features content marketing manager Beth Elderkin discussing the changes, followed by a conversation with news editor Chris Kerr and columnist Nicole Carpenter on key data points regarding layoffs, unionization, generative AI, and tariffs.
Call Of Duty: Black Ops 7, Diablo 4, And More Games Are Free On Xbox This Weekend
Microsoft is offering several games for free on Xbox over the July 4th weekend as part of its Free Play Days promotion. Call of Duty: Black Ops 7 multiplayer and Zombies are available until July 6, and Diablo IV until July 7. Demonschool and The Stone Madness have two-hour trials available until July 5. Some titles, like Ikonei Island: An Earthlock Adventure, require an Xbox Game Pass subscription.
Rumors claim Xbox wants to close Obsidian, but Jason Schreier says otherwise
Recent reports suggest Xbox is considering closing or selling several studios, including Obsidian Entertainment, due to financial pressures. However, journalist Jason Schreier has refuted claims that Obsidian is in negotiations to avoid closure, stating Xbox intends to keep the developer. The article also touches on frustrations within Xbox regarding leadership's focus on profitability and the impact of underperforming titles like Call of Duty: Black Ops 7.
Is yet another Microsoft studio, Obsidian, negotiating with Xbox to avoid closure? Conflicting reports emerge
Conflicting reports suggest that Obsidian Entertainment is negotiating with Microsoft to avoid closure, amidst a wave of layoffs affecting other Xbox studios like Arkane, Double Fine, Compulsion Games, Ninja Theory, and Undead Labs. While one report indicates internal sentiment blames poor Call of Duty performance for these decisions, another source denies Obsidian is in negotiations to shut down, stating the studio will be kept by Xbox.
Obsidian reportedly safe from Xbox studio closures despite fears the RPG powerhouse was in negotiations to avoid…
Despite earlier reports suggesting Obsidian Entertainment was negotiating to avoid closure, Bloomberg reporter Jason Schreier has confirmed the RPG developer is safe. The news comes amid widespread fears of mass layoffs and studio shutdowns within Xbox's gaming division.
Xbox May Shut Down Obsidian Entertainment, Too
New reports indicate that Xbox is considering shutting down or selling Obsidian Entertainment, the studio behind games like Avowed and Fallout: New Vegas. This potential closure is part of a larger plan by Xbox to reallocate funds towards its major franchises, potentially affecting other subsidiaries like Compulsion Games, Double Fine, Ninja Theory, and Undead Labs.
Union workers establish hardship fund to support devs impacted by layoffs
Union members at United Videogame Workers-CWA have established the Game Worker Hardship Fund to provide financial assistance to game developers in the US and Canada impacted by recent layoffs. The fund offers cash sums up to $5,000 for basic living expenses, and applicants do not need to be union members to receive aid.
After layoffs and Destiny 2's abrupt end, Bungie "can't promise a fix" to reported issues: "We will get this out when possible"
Bungie has announced a delay for a Destiny 2 patch due to recent mass layoffs impacting the development team. The studio stated that while the patch is not indefinitely postponed, some fixes were being worked on by affected employees. Bungie is also addressing player-reported issues with Destiny 2's performance, acknowledging that while they "can't promise a fix," they will investigate.
Star Wars Eclipse is “Continuing as Planned,” Says Quantic Dream, Despite Recent Strikes
Quantic Dream has stated that Star Wars Eclipse is continuing development as planned, despite recent employee strikes and the closure of their previous game, Spellcasters Chronicles. Reports suggest the studio faced significant development challenges and potential layoffs, but a spokesperson assured that the project has the necessary resources and team commitment. The game was first announced in December 2021, with rumors circulating about its lengthy development time and lack of a playable build.
This Week In Games Was Bad, But Next Week May Be Worse
The gaming industry experienced a particularly bleak week with multiple significant layoffs, studio closures, and price increases. Microsoft's Xbox division saw widespread job cuts, while Sony announced plans to end physical disc production for PlayStation games by 2028. These events, coupled with delays and the ongoing impact of AI discussions, paint a grim picture for the industry's immediate future.
IO Interactive’s online fantasy RPG Project Fantasy sees Xbox pull funding and begins studio layoffs
IO Interactive's online fantasy RPG, Project Fantasy, is facing significant challenges as Xbox has withdrawn its funding. This decision has led to studio layoffs, though IO Interactive remains committed to completing the game. Xbox stated that while overall investment in games remains, their investment strategy is shifting.
OtherSide Entertainment lays off 18 from Thick as Thieves team
OtherSide Entertainment has laid off 18 employees from its Thick as Thieves development team, bringing the total number of recent layoffs to 36. The studio cited the increasing difficulty of commercially viable development for immersive sims as the reason for the cuts, despite a recent investment from Aonic and a reduced scope for Thick as Thieves.
Ubisoft Barcelona staff goes on strike over proposed layoffs
Ubisoft Barcelona employees have initiated strikes lasting until July 17, protesting proposed layoffs that could affect 51 workers. The studio is set to be restructured to focus solely on the Rainbow Six franchise. Workers are demanding job security, adherence to internal promotions, improved salary and benefits, and a return to a 60% remote work model.
