Chris Avellone says Xbox studios are increasingly concerned about layoffs

Veteran game designer Chris Avellone reports growing concern among Xbox first-party studios regarding potential layoffs, despite previous assurances. Employees are reportedly receiving conflicting messages about their future following recent leadership changes and a company-wide focus on efficiency and core franchises.

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2 articles · 2 sources 11 days ago

Xbox Faces Major Layoffs and Potential Studio Closures

Xbox is reportedly planning significant layoffs and possible studio closures in July. Several first-party developers, including Rare, Bethesda, Arkane, Compulsion Games, Double Fine, and Ninja Theory, are rumored to be at risk. These moves are seen as a strategic shift by new management to address declining revenue and improve profitability.

COMPANY Xbox
COMPANY Microsoft

Sources covering this · 2

Xbox Developers Facing “Panic and Anxiety” at Further Layoffs – RumorXbox developers are reportedly experiencing significant panic and anxiety due to ongoing and anticipated future layoffs, with further job cuts planned for the remainder of fiscal year 2027. This uncertainty is causing stress among remaining staff, who fear their workload could be used as justification for future termination. The situation extends to agencies working with the company, which have seen their vendor budgets slashed by 50 percent. Gaming Bolt · 1 day ago
Xbox Layoffs, Studio Closures, And Spin-Offs: Everything Announced TodayMicrosoft has announced significant layoffs and studio restructuring within its Xbox division, impacting 3,200 employees over the current financial year, with 1,600 layoffs starting immediately. Several studios, including Compulsion Games and Double Fine Productions, are transitioning back to independent management, while others like Ninja Theory and Undead Labs are seeking new ownership. The company cited financial underperformance and a need to reset its strategy, focusing investment on higher-priority games and core IPs. Gamespot · 8 days ago
Xbox Could Help Studios at Risk to Complete Their Games – RumorRumors suggest Xbox is planning significant cost-cutting measures, potentially leading to layoffs and studio closures. While some studios might go independent or be sold, there's a possibility that affected studios could still complete their announced games. This news comes amid broader industry challenges and discussions about PlayStation ceasing disc production. Gaming Bolt · 11 days ago