Latest Xbox, multi-platform Game News & Updates
☁ Xbox, multi-platform News
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🟩 Xbox, Multi-platformXbox’s bold plan for the future sounds nearly impossible
It's another bad week for the video game industry. Microsoft outlined a series of layoffs on Monday that Xbox CEO Asha Sharma described as "the most significant restructure in Xbox history." But buried in Sharma's memo was a curiously optimistic statement: "I want Xbox to be one of the few companies that entertains more than &8230;
🟩 Xbox, Multi-platformGame Pass could see major change under new Xbox restructure
Xbox announced sweeping changes in early July, which could have downstream effects on every part of the business, including its Game Pass service.
🟩 Xbox, Multi-platformXbox layoffs hit Bethesda: Elder Scrolls Online developer 'gutted'
On Monday, Xbox announced significant layoffs. Bethesda has been reportedly hit hard by job losses, especially the Elder Scrolls Online team.
🟩 Xbox, Multi-platform“Catastrophic Mismanagement” And AI Gambits Led To Mass Xbox Layoffs, Expert Says
Microsoft has announced sweeping layoffs and other dramatic changes resulting in 4,800 layoffs across the company(https://www.gamespot.com/articles/xbox-layoffs-studio-closures-and-spin-offs-everything-announced-today/), including 3,200 at Xbox specifically. What's led to this? According to one expert, Microsoft CEO Satya Nadella and his "catastrophic mismanagement" of the company is to blame. Ed Zitron, an author who specializes in covering the technology space and is the CEO of EZ Primary Research, offered a blistering take(https://x.com/edzitron/status/2074201562843418672) on Microsoft's management in response to the mass layoffs. "Catastrophic mismanagement by a company run by a sub-McKinsean imbecile that hires other losers to move money around to hide how bad his AI plays are. Microsoft is a disgrace to the software industry," he said. Zitron has been an outspoken critic of elements of AI in particular, recently appearing on CNBC(https://x.com/edzitron/status/2072703921768837195) to offer the bear case against generative AI. "One of the biggest lies of the AI bubble is that Microsoft, Google, Amazon and Meta are 'growing because of AI,'" he said recently. "In reality, they're using the continued growth of their other business units to cover the meager returns from AI, and the massive waste of their trillion+ in capex." Microsoft, of course, is massively invested in AI, and Zitron appears to be suggesting here that some of the issues that led to these dramatic cuts at Xbox are in some ways tied to Microsoft's AI plays. In its statement today addressing the cuts(https://blogs.microsoft.com/blog/2026/07/06/the-latest-in-our-company-transformation/), Microsoft said it is laying off thousands of people because the world is changing and Microsoft is attempting to adapt. Microsoft also pushed back against the theory that the roles eliminated today are being replaced by AI, though the company did admit that, "AI is changing how work gets done." Investors tend to reward companies that cut costs, but that doesn't appear to be the case this time with Microsoft, as the company's stock price is down today. That continues a trend for Microsoft, as shares are down 18% year-to-date and 22% in the past year. The cuts to Xbox include not just staff layoffs, but also Microsoft divesting of five development studios. Double Fine and Compulsion are regaining their independence(https://www.gamespot.com/articles/xbox-layoffs-studio-closures-and-spin-offs-everything-announced-today/), while Ninja Theory and Undead Labs are being sold(https://www.gamespot.com/articles/state-of-decay-and-hellblade-devs-are-being-sold-but-buyers-remain-mysterious-for-now/). Arkane Lyon, meanwhile, is in the "consultation" process to determine its fate and the fate of Marvel's Blade.(https://www.gamespot.com/articles/heres-whats-going-on-with-marvels-blade-and-its-developer-amid-xbox-reset/)
🟩 Xbox, Multi-platformXbox Game Pass subscriber numbers have fallen massively short
Xbox Game Pass is reportedly at around 30 million subscribers, which shows a steep decline and way below targets.
🟩 Xbox, Multi-platformXbox CEO Reflects On Massive Cuts: “We Simply Spread Ourselves Too Thin”
Xbox CEO Asha Sharma has shared new details on the significant changes at Xbox(https://www.gamespot.com/articles/xbox-layoffs-studio-closures-and-spin-offs-everything-announced-today/), including mass layoffs, studio spinoffs, and more. In an interview with Fortune(https://fortune.com/2026/07/06/exclusive-xbox-ceo-asha-sharma-job-cuts-studios-axed-layoffs), Sharma said Microsoft undertook "a bunch of bets" years ago to help grow the business, including Game Pass, going multiplatform, and beefing up its studio base. These bets did not pay off(https://www.gamespot.com/articles/new-xbox-ceo-admits-game-pass-bet-has-not-worked-out/), and in the process of pursuing these new ventures, "We inherently didn't focus on the core business," Sharma said. "The number one measure of your strategy is what you put your resources behind, and we simply spread ourselves too thin," she said. !(https://www.gamespot.com/wp-content/uploads/2026/07/sharma-1.png?w=1024) Asha Sharma is making major cuts to Xbox. In a memo to staff, Sharma said the Xbox business, as it stands today, is not in a healthy place. If it were, Sharma said the company would be able to "weather the shock of the hardware crisis" that Xbox is facing now due to the AI-fueled run on components and memory. "With an unhealthy Xbox, it becomes really challenging, and it accelerates a lot of the changes we need to make,” Sharma said. The restructuring of Xbox is part of a "reset," and a big part of that is downsizing. About 1,600 people at Xbox are losing their jobs today, with another 1,600 cuts to come throughout the next year. Additionally, Microsoft is spinning out Double Fine and Compulsion, and selling off Ninja Theory and Undead Labs, though the buyers for those companies have not been confirmed as of yet. Another studio, Arkane Lyon, is in the "consultation" process(https://www.gamespot.com/articles/heres-whats-going-on-with-marvels-blade-and-its-developer-amid-xbox-reset/) and that will seemingly determine the fate of the studio and its in-development project, Marvel's Blade. The layoffs didn't just hit Xbox, as Microsoft is laying off staff across the entire company, with some 4,800 positions (about 2% of the company's workforce) affected in the latest round of cuts.
🟩 Xbox, Multi-platformAll Xbox studios remaining following mass layoffs and restructure
Here's what we know about every studio remaining at Xbox following the company's mass layoff announcement.
🟩 Xbox, Multi-platformHere’s What’s Going On With Marvel’s Blade And Its Developer Amid Xbox “Reset”
Microsoft is undergoing a major shakeup that involves mass layoffs, studio sell-offs, and other significant changes(https://www.gamespot.com/articles/xbox-layoffs-studio-closures-and-spin-offs-everything-announced-today/) as part of a "reset" of the business. While we have learned that Ninja Theory and Undead Labs are being sold off(https://www.gamespot.com/articles/state-of-decay-and-hellblade-devs-are-being-sold-but-buyers-remain-mysterious-for-now/) and Double Fine and Compulsion are going independent, we don't yet know what the future holds for Arkane Lyon and its long-in-development Blade game. The French studio is undergoing "consultation," but its fate has yet to be determined. There is a lot we still don't know, but for now, here's everything you need to know about Arkane Lyon and Marvel's Blade leading up to the news today. Entering consultation Arkane Lyon is based in France, and due to local labor laws, the studio is entering "required consultation" with its local Works Council. This process will include a "review of potential strategic options." But there is a lot we don't know. Could Arkane Lyon be sold off like Ninja Theory and Undead Labs? Go independent like Double Fine and Compulsion? Shut down like its sister studio Arkane Austin before it? Also unknown is what will happen with the Blade game itself. Microsoft said in its announcement that no publicly announced first-party games are being canceled in the "reset" process(https://www.gamespot.com/articles/no-announced-xbox-games-are-getting-axed-in-microsoft-layoffs-company-says/), but if Arkane Lyon is sold, it's anyone's guess as to what may happen to the project. Disney, which owns Marvel, would presumably be involved in these negotiations as well. Arkane founder jokes about buying the studio Arkane co-founder Raphael Colantonio, who no longer works there, responded to Sharma's post to ask about how much Arkane might cost to buy. "Regarding Arkane... how much? I'm asking for a friend," he said, with a laughing emoji. https://twitter.com/rafcolantonio/status/2074142859666551185 Delayed and over-budget, apparently A report from The Verge(https://www.theverge.com/report/959467/microsoft-xbox-cancel-blade-game-arkane-studios-closure?viewtoken=eyJhbGciOiJIUzI1NiJ9.eyJpZCI6Inp0bjNNQk1pVm0iLCJwIjoiL3JlcG9ydC85NTk0NjcvbWljcm9zb2Z0LXhib3gtY2FuY2VsLWJsYWRlLWdhbWUtYXJrYW5lLXN0dWRpb3MtY2xvc3VyZSIsImV4cCI6MTc4MzI3MDkyMSwiaWF0IjoxNzgyODM4OTIxfQ.pOFMRE5pUQgOYGX0scwb6LrEhrfZuecr50Fysx3fd8&utmmedium=gift-link) said Marvel's Blade was over-budget and had been delayed internally. The game was said to be eyeing a 2026 release but was delayed internally to late 2027. That's all the info the report had to share, but it came after Blade was a no-show at the Xbox Games Showcase in June. https://www.youtube.com/watch?v=wB9ye56mSfk Announced in 2023 and not much to show Blade was announced in December 2023 at The Game Awards that year(https://www.gamespot.com/articles/blade-game-announced-by-deathloop-dev-arkane-lyon/1100-6519805/), but the reveal trailer was CG and many believed it was more of a mood piece meant to hype fans up and help developer Arkane Lyon recruit staff to work on it. Game director Dinga Bakaba mentioned on stage that it’s a third-person action-adventure game that takes place in Paris. No gameplay footage has been released. Prior to developing Deathloop, Arkane Lyon worked on both Dishonored(https://www.gamespot.com/games/dishonored/) and Dishonored 2(https://www.gamespot.com/games/dishonored-2/). The studio certainly has a knack for world-building and level design, and it will be interesting to see how that is applied to a well-established universe. A Blade film starring Mahershala Ali has been in the works for a long, long time, suffering multiple setbacks throughout its troubled development.
🟩 Xbox, Multi-platformDishonored co-creator asks Xbox CEO 'how much' to buy Arkane
Arkane, the studio behind Dishonored and more, has its future in question as Xbox cuts 4 other studios and lays off 3,200.
🟩 Xbox, Multi-platformXbox Layoffs “Heavily Impact” The Accessibility Team, Too
As part of the 1,600 people being let go by Xbox during its big reset(https://www.gamespot.com/articles/xbox-layoffs-studio-closures-and-spin-offs-everything-announced-today/) on July 6, it appears that the company's Accessibility division has been hit pretty heavily as well. According to a now-deleted July 6 Bluesky post, a senior user researcher for accessibility at ZeniMax Media shared that they were caught in the blast zone, too. They also revealed that the "accessibility staff overall seems heavily impacted," with "multiple people on the Bethesda User Research Team" getting laid off. On LinkedIn, the researcher reshared a post(https://www.linkedin.com/feed/update/urn:li:activity:7478110140462804992/) by Zach Clothier, the accessibility test lead for the Microsoft gaming accessibility testing service, who announced his departure after nearly three years in his role. It's unclear how many other people have been affected, but according to that now former ZeniMax Media senior researcher, it sounds like the team has been decimated amidst these layoffs. This comes during Disability Pride Month, which is supposed to honor the history, achievements, and experiences of the disability community. A Microsoft spokesperson told GameSpot over email that despite the restructuring, the company plans to continue its work in making gaming more accessible for all. "Accessibility remains a priority for Xbox," the spokesperson said. "While we've made changes across the team, creating more accessible gaming experiences for players has not changed." Xbox's Accessibility Team is responsible for some wonderful features and technologies that make gaming easier for all players. This includes things like the Adaptive Controller(https://www.gamespot.com/articles/microsofts-xbox-adaptive-controller-went-through-a-unique-evolution-during-the-design-process/1100-6484917/) and its various attachments(https://www.gamespot.com/articles/xbox-adaptive-joystick-is-available-now/1100-6530210/), as well as accessibility options(https://support.forza.net/hc/en-us/articles/51644264237075-Forza-Horizon-6-Accessibility-Support) in games such as Forza Horizon 6(https://www.gamespot.com/games/forza-horizon-6/) to change everything from the way it looks to the way it plays. 1,600 people will lose their jobs on July 6, while another 1,600 will lose their jobs over the next 12 months. These cuts make up about 20% of Microsoft's staff. Some studios have been cut loose, with Ninja Theory and Undead Labs being sold to a mysterious buyer(https://www.gamespot.com/articles/state-of-decay-and-hellblade-devs-are-being-sold-but-buyers-remain-mysterious-for-now/). Meanwhile, the fate of Arkane Studios is still unknown, and both Id Software and ZeniMax have lost staff(https://www.gamespot.com/articles/xbox-layoffs-hit-id-software-and-zenimax-as-focus-shifts-to-bigger-franchises/) so that those studios could shift toward focusing on bigger franchises.
🟩 Xbox, Multi-platformFormer Xbox studios Double Fine and Compulsion will keep games after going indie
Microsoft is spinning off four of its Xbox game studios - Compulsion Games, Double Fine Productions, Ninja Theory, and Undead Labs - as part of the restructuring announced today. However, two that are going independent, Double Fine and Compulsion, will get to keep their franchises and games catalogs, according to Xbox CEO Asha Sharma. "Compulsion &8230;
🟩 Xbox, Multi-platformUndead Labs spent eight years as an Xbox studio and still didn't make State of Decay 3
As Xbox cuts ties with Ninja Theory, Compulsion, and Double Fine, Undead Labs' case is the worst but not the only case of mismanagement