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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