Xbox CEO Asha Sharma reportedly told staff in an internal memo that the Game Pass strategy sent the division's balance sheet into freefall, but claims the business is now returning to growth after cutting prices and removing Call of Duty as a day-one title. Microsoft laid off nearly 2,000 employees in 2026 amid the restructuring.
Microsoft has confirmed Activision will develop the next mainline Halo game as part of a sweeping Xbox Studios restructure that includes 268 layoffs. The move effectively guts Halo Studios, formerly 343 Industries, while folding Rare and World's Edge under the Call of Duty publisher's umbrella.
Tencent's Lightspeed LA studio has laid off 80 developers from Last Sentinel, a cyberpunk open-world game positioned as a Grand Theft Auto competitor. The project has burned through six years and hundreds of millions of dollars with little to show for it. Bloomberg reports the studio still cannot define a clear direction for the game.
Lightspeed LA has announced a major creative shift for its narrative-driven open-world action game Last Sentinel, resulting in staff layoffs. The studio confirmed the decision came after extensive internal reviews and play-testing showed early impressions fell short of expectations, though development continues with no release date announced.
Assassin's Creed Black Flag Resynced has sold 3.5 million copies in its first 14 days, exceeding Ubisoft's annual expectations for the remake. The strong launch comes as the publisher reports a 9% year-on-year decline in net bookings and confirms a third round of layoffs affecting 380 employees across its studios.
Bungie has confirmed that the game director for its upcoming extraction shooter Marathon has left the studio. The departure arrives during a turbulent period marked by layoffs and leadership changes at the PlayStation-owned developer. Players waiting for the sci-fi revival will now watch closely for signs of how this shift impacts the project's trajectory.
Outer Worlds 2 director Eric Barone addresses the recent Xbox layoffs, reassuring fans about the game's development status. He dispels misinformation circulating online, confirming the project's ongoing progress. The game remains on track despite the industry upheaval.
Obsidian Entertainment's Game Director Brandon Adler responds to community concerns that the studio has lost its original talent and identity following recent layoffs and announcements, including a new Fallout project. Adler emphasizes the studio's consistent DNA from Knights of the Old Republic 2 to current games. The comments come as Obsidian navigates mixed reactions to its involvement in a new Fallout game, headed by Josh Sawyer, amidst thousands of layoffs across Xbox's restructured gaming divisions.
Obsidian Entertainment, fresh from releasing Avowed, Grounded 2 (Early Access), and The Outer Worlds 2, addresses the aftermath of Microsoft's 1,600-strong gaming division layoffs, which saw 50 staff cut from the studio. Despite halted Avowed sequel plans in favor of a new Fallout game under Josh Sawyer's leadership, the studio pushes back against claims of a changed identity. Game Director Adler defends Obsidian's "DNA," emphasizing continuity despite external speculation.
Microsoft has dismissed allegations that the denial of foreign worker visas prompted the recent wave of layoffs affecting Xbox teams. The company asserts that visa issues were not a factor in its decision-making process. This clarification comes amid concerns over the impact of visa policies on the tech and gaming industries.
