Layoffs
Ongoing coverage on Layoffs.
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Microsoft Considering Cancelling Blade And Selling Arkane
Microsoft is reportedly considering cancelling the game Marvel's Blade and potentially selling Arkane Studios amidst widespread layoffs. The future of Arkane's Blade project, announced in 2023, is uncertain as the company undergoes significant restructuring.
Io Interactive Laying Off Staff After Partner Withdraws from Project Fantasy
IO Interactive has announced layoffs following the withdrawal of funding for their new intellectual property, Project Fantasy, by an external partner, rumored to be Microsoft. Despite the setback, the company remains committed to the project's completion. This decision comes amid broader shifts within Xbox's business strategy under new leadership.
Xbox could cancel Marvel's Blade and close Arkane in July bloodbath, report says, or the studio may be sold off
Xbox is reportedly considering closing or selling Arkane Studios and canceling its game Marvel's Blade due to budget and release date issues. This is part of a larger wave of layoffs expected in July as Microsoft aims to cut costs. Other studios like Arkane Austin and Compulsion Games have also faced closures or struggles.
Hitman, 007 First Light Studio Begins Layoffs As Its Fantasy RPG Project Suffers Setbacks
IO Interactive, the developer behind Hitman and 007 First Light, has begun layoffs due to setbacks with its unreleased fantasy RPG, codenamed Project Fantasy. The studio confirmed that Xbox has pulled its funding for the project, though IO Interactive remains committed to its completion. The layoffs are described as short-term consequences of adapting to this change.
IO Interactive look set for layoffs as their external partner for Project Fantasy pulls out
IO Interactive is facing imminent layoffs due to the termination of its relationship with an external partner for its unannounced game, Project Fantasy. While the studio remains committed to the game's development, the split necessitates staffing changes. Project Fantasy was previously revealed in documents to be intended for publishing by Xbox Game Studios.
007 First Light, Hitman Developer IO Interactive Announces Layoffs After 'Relationship With an External Partner' on Fantasy Project Ends
IO Interactive, the developer behind Hitman and the upcoming 007 First Light, has announced layoffs. This comes after a fantasy project, reportedly set to be published by Xbox, faced an unexpected setback due to a severed relationship with an external partner.
Report: Xbox considering sale or closure of Arkane, other studios, as layoffs loom
A report suggests Xbox is considering selling or closing several studios, including Arkane Studios, Double Fine, Compulsion Games, Ninja Theory, and Undead Labs, as part of a major 'reset' under new CEO Asha Sharma. The upcoming game 'Blade' is reportedly over budget and may be canceled. Mass layoffs affecting over a thousand roles are also anticipated across Xbox in early July, following the Activision Blizzard acquisition.
Microsoft Could Cancel Marvel’s Blade And Close Its Developer
Microsoft is reportedly considering cancelling the upcoming Marvel's Blade game and potentially closing its developer, Arkane Studios. The game, originally slated for 2026 but delayed to late 2027 and over budget, has not had gameplay footage released since its 2023 announcement. This potential closure is part of broader plans for studio restructuring and layoffs within Xbox, which are expected to begin in July.
Opinion: Everything hurts and no one knows when the pain will end
The article discusses the ongoing financial struggles and mass layoffs within the game industry, attributing them to a combination of economic factors, executive mismanagement, and alleged abuses of power. The author, Bryant Francis, shares personal coping mechanisms for dealing with the constant stream of bad news and emphasizes the need for the industry to learn from past mistakes.
Amid Xbox “Reset,” Microsoft Is Having Its Worst Month In 26 Years
Microsoft is experiencing its worst stock performance in 26 years, with shares down approximately 20% in June 2026. This financial downturn coincides with an 'reset' of the Xbox business under CEO Asha Sharma, which is expected to include significant layoffs and studio closures, driven in part by CFO Amy Hood's demands for cost savings. Despite overall revenue growth, high capital expenditures for AI infrastructure and Xbox's low profit margins are impacting investor confidence.
Impending XBOX restructuring could reportedly be the ‘largest single layoff event in gaming history’
Xbox is reportedly planning a significant restructuring that could result in the largest single layoff event in gaming history. This news follows a period of broader industry consolidation and workforce reductions.
Planned Xbox Layoffs Will Be “The Largest Single Layoff Event In Gaming History”
George Broussard, co-founder of 3D Realms, suggests that Xbox may be planning significant layoffs, potentially impacting over 2,000 employees. This information is currently unconfirmed and should be treated as a rumor until official verification.
Ubisoft Barcelona staff go on strike over 51 staff being laid off
Staff at Ubisoft's Barcelona studio are organizing strikes and demanding job security following proposed layoffs of 51 workers. The union is pushing for a five-year protection against mass layoffs, the fulfillment of agreed promotions, and improved work-life balance measures. These actions come amid broader cost-cutting initiatives at Ubisoft, which has also seen the closure of its Winnipeg and Belgrade studios.
State of Decay studio Undead Labs potentially up for closure, sources claim, with Bethesda and Blizzard also facing layoffs
Microsoft is reportedly planning significant layoffs across its gaming division, potentially including the closure of Undead Labs, the studio behind State of Decay. Bethesda and Blizzard Entertainment are also expected to face substantial job cuts as part of a company-wide "reset." Union workers are negotiating with management to protect jobs or secure severance packages amid these widespread reductions.
Xbox cuts rumoured to be the ‘largest single layoff event’ in gaming history
Reports suggest that Xbox is planning a significant round of layoffs, potentially the largest in gaming history, impacting multiple studios including Undead Labs, Ninja Theory, Compulsion Games, and Double Fine. Game designer George Broussard claims to have inside information indicating widespread studio closures and job cuts across the Xbox division following the end of its fiscal year.
State of Decay 3, Which Was at Xbox Games Showcase and Is Currently Running Playtests, Reportedly at Risk of Cancellation as Buyer Sought for Undead Labs
Reports suggest that State of Decay 3 and its developer Undead Labs are at risk of cancellation as part of impending layoffs at Xbox. There are concerns that a buyer is being sought for Undead Labs.
Xbox is reportedly considering closing State of Decay developer Undead Labs
Microsoft is reportedly considering closing several Xbox-owned studios, including Undead Labs, the developer of the State of Decay series. Other studios at risk include Double Fine, Compulsion Games, and Ninja Theory, as part of a broader 'reset' plan for the Xbox brand aimed at improving profitability. These potential closures could result in hundreds of job losses, with layoffs expected to begin in early July.
CWA union says Xbox workers are not "disposable" as layoffs loom
The Communications Workers of America (CWA) union is supporting Xbox employees facing potential layoffs, stating they will not be treated as "disposable." Union representatives highlighted Microsoft's financial resources, including recent console price increases and executive compensation, as evidence that layoffs are a choice. An Xbox spokesperson acknowledged the company respects employees' rights and is negotiating in good faith with the CWA.
Comings and Goings
Unionized Xbox developers held a press conference to voice concerns as Microsoft reportedly prepares for significant layoffs. These workforce reductions are expected to occur after the current fiscal year concludes.
PlayStation – and The Gaming Industry – Just Doesn’t Learn With Live-Service
Despite numerous high-profile failures and significant layoffs within studios like Bungie and Quantic Dream, Sony Interactive Entertainment, led by Hideaki Nishino, remains committed to pursuing live-service games. This strategy is questioned due to past setbacks and the company's historical strength in single-player titles, with concerns that chasing trends is leading to wasted investment and development resources.
