Xbox's planned 3,200 layoffs by July 2027 are already easily the biggest round of layoffs the industry has ever seen if taken at mere face value, but Bloomberg's Jason Schreier argues that's just the proverbial tip of the iceberg. In a new YouTube video, the journalist highlights the "hidden cuts" of the many contractors that were linked to a canceled project. Nowadays, triple-A game development involves several studios working together, some of which are external. For example, he reveals that the Perfect Dark reboot wasn't developed solely by The Initiative and Crystal Dynamics: sister studio Eidos Montréal was also involved, […]

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ZeniMax Online Studios was among the first-party studios most affected by the Xbox layoffs in both July 2025 and 2026. Last year, the team saw its sci-fi online game Project Blackbird (with related layoffs of a few hundred employees who had been working on it for years) canceled despite then-Xbox CEO Phil Spencer reportedly loving it. The end of Project Blackbird also directly led to the resignation of ZeniMax Online Studios founder Matt Firor, who would later label it as a missed opportunity for Xbox. Following the cancellation of Blackbird, ZOS refocused on its prize jewel, the popular MMORPG The […]

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Amid all the problems that besiege Microsoft's Xbox division, the studio divestitures, the layoffs, the declining business, and even the loss of a few million Game Pass subscribers, lies one lingering question: what actually is Xbox? A platform or the biggest third-party publisher? Microsoft certainly tried its damnedest to confuse consumers with its constantly shifting strategy regarding first-party content, as well as the delirious "This Is an Xbox" campaign. Xbox CEO Asha Sharma quickly tossed it in the trash after taking over from Phil Spencer, seeking a return to the brand's core values. But even she admitted that there's a fundamental […]

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Montréal-based developer Compulsion Games is among the studios that were officially divested from Microsoft's Xbox last week. Indeed, Compulsion Games (like Double Fine Productions) was sold back to its own management and has therefore returned to full independence, but that does not mean they won't need partners. In fact, they haven't wasted any time at all in opening the search. A few hours ago, the official LinkedIn account of the studio posted the following call-out message to fellow industry members: With Compulsion Games returning to its roots as an independent developer, we are expanding opportunities to collaborate with studios across […]

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A storm passed through many internal Xbox studios between studio divestitures and mass layoffs, but Activision Blizzard largely emerged unscathed this time around, likely because it's the main money-maker at present. We know that Call of Duty prints money even in off years, for example. But even the Blizzard side has been doing well lately, thanks to a resurgence of its core IPs: Overwatch, Warcraft, and Diablo. That's what Bloomberg's Jason Schreier confirmed in his latest video, while teasing that the company has "a ton" of projects underway, including the rumored StarCraft shooter game. So right now, Blizzard is kind […]

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[UPDATE - July 11, 2026] The Verge's Tom Warren has now chimed in to say that despite the big layoffs, id Software is not, in fact, a support studio and work has already begun on a new DOOM game. [ORIGINAL STORY] Following the mass layoffs enacted by Xbox CEO Asha Sharma as part of her "big reset" of the division, Texan developer id Software repeatedly made headlines as evidence mounted that it may no longer be fully operational. A WARN (Worker Adjustment and Retraining Notification) filed in Texas revealed that 136 of around 185 employees had been laid off, raising serious concerns […]

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