Latest Xbox Game News & Updates
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🟩 Xbox, Multi-platformAfter Xbox Pulls Funding, Hitman Dev Is Closing A Studio And Laying People Off
Hitman and 007: First Light developer IO Interactive has confirmed(https://x.com/iointeractive/status/2074475151471571062?s=46&t=KA0eXy1Spm71dnMQdFC23A) that it is closing its Istanbul office, laying off staff in the process as part of cuts that the studio said were "necessary" to help the company stay afloat in the future. IO said it made these cuts after Xbox dropped out of funding Project Fantasy(https://www.gamespot.com/articles/hitman-007-first-light-studio-begins-layoffs-as-its-fantasy-rpg-project-suffers-setbacks/), the company's mysterious upcoming RPG. IO has now "regained full ownership of the project and our IP" related to Project Fantasy, and IO will now fund it independently. However, this meant that IO had to pull back in other areas, including efforts for "external projects and potential mobile game derivatives." "We had to find a new balance for the long-term future of the studio, focused on the success of our main internal core titles," IO said. "This has meant making changes as well as proposed changes across our studios: the closure of our Istanbul studio and starting a process to part ways with colleagues who have been a meaningful part of what makes IOI what it is." Closing the Istanbul office and laying off staff were "hard, but necessary decisions" made to "retain the long-term future of IO..." The developer said its structure as a fully independent AAA developer and publisher is a rarity in the modern gaming landscape. Making the cuts also gives Project Fantasy "the best possible foundation to succeed under our own passion and direction." In June, IO signaled that layoffs were coming due to Xbox pulling out of Project Fantasy(https://www.gamespot.com/articles/hitman-007-first-light-studio-begins-layoffs-as-its-fantasy-rpg-project-suffers-setbacks/), but this was the first confirmation of the details and the specifics regarding the closure of the Istanbul office. In addition to Project Fantasy, many want to see IO make a sequel to 007: First Light after the game's critical and commercial success, but it remains to be seen if that will happen.(https://www.gamespot.com/articles/007-first-light-sequel-sounds-like-a-matter-of-when-not-if/) Microsoft stopped funding Project Fantasy as part of its renewed focus on the games and franchises it believes will make the most money(https://www.gamespot.com/articles/xbox-focusing-on-highest-priorities-claims-its-not-cutting-back-overall-spending-on-games/). Microsoft said it is not reducing its overall investment in games, but what's changing is where the company is investing. Clearly, games like Project Fantasy, along with the next game from the creator of Assassin's Creed are not part of that vision(https://x.com/stephentotilo/status/2071619030390022284). Xbox was also going to fund the next game from Naughty Dog veteran Bruce Straley before backing out(https://x.com/kiwitalkz/status/2063395518135337147). For more, check out the story below: - Xbox Layoffs, Studio Changes, And Spin-Offs: Everything Announced In Big Shakeup(https://www.gamespot.com/articles/xbox-layoffs-studio-closures-and-spin-offs-everything-announced-today/)
🖥 PlayStation, Xbox, PCWhat's changed in Assassin's Creed Black Flag Resynced
!(https://assetsio.gnwcdn.com/edward-jumping-black-flag.jpg?width=690&quality=85&format=jpg&auto=webp) Assassin's Creed IV: Black Flag(https://www.rockpapershotgun.com/games/assassins-creed-iv-black-flag) is considered by many to be one of the best in Ubisoft's ongoing chronicle of Assassins versus Templars, and you'd be hard-pressed to find a pirate-loving fan of this franchise who didn't enjoy swashbuckling as Edward Kenway in the original 2013 release. After many months of rumours swirling about the remaster, we've finally had a chance to sink our anchors into Black Flag Resynced(https://www.rockpapershotgun.com/games/assassins-creed-black-flag-resynced), and can lay out the biggest differences that immediately caught our eye. If you've been on the fence about whether to check out this update, or are simply wondering what's changed, this guide's for you. We'll outline all the major differences between Assassin's Creed: Black Flag Resynced and the original game, starting with the fresh coat of paint that Edward is sporting and ending with some of the more notable omissions to the game's overarching plot. Read more(https://www.rockpapershotgun.com/assassins-creed-black-flag-resynced-vs-original)
🟩 Xbox, Multi-platformBethesda Tells Workers The Company Needs To “Change Course” And Focus On Games With “Greatest Potential”
Microsoft recently announced sweeping layoffs affecting 4,800 people(https://www.gamespot.com/articles/xbox-layoffs-studio-closures-and-spin-offs-everything-announced-today/), including 3,200 at Xbox alone. This is happening as part of a "reset" of Xbox, and this includes changes to the company's various subsidiaries, including Bethesda. Bethesda boss Jill Braff said the cuts at Xbox "reflect the realities of our industry and business." She said Bethesda has a responsibility to ensure it is "operating from a more stable foundation." In addition to layoffs across the organization--Betheda's id Software, ZeniMax Online Studios, and Obsidian teams were hit particularly hard--Braff said Bethesda needs to rethink how it works and what franchises it focuses on. "To be successful in the future, we need to change course,” Braff said in a memo to staff obtained by IGN(https://www.ign.com/articles/we-need-to-change-course-bethesda-boss-tells-staff-the-company-must-focus-on-our-strongest-franchises-as-xbox-layoffs-hit-hard). “We must strengthen our business, return to sustainable growth, and ensure we can continue investing in our franchises and our players. I know that doesn't make a day like today any easier.” !(https://www.gamespot.com/wp-content/uploads/2026/07/falloutfaae7a.jpg?w=1024) A fifth mainline Fallout game is among the upcoming projects at Bethesda. Braff did not get into specifics, but said Bethesda will now shift "from a planning model primarily centered on what's next for each independent studio to one that focuses on our strongest franchises and determining the content roadmap that best serves our players and Bethesda as a whole.” Braff went on to say that Bethesda's teams will now focus on "the opportunities with the greatest potential." One of those projects is no doubt The Elder Scrolls 6(https://www.gamespot.com/articles/the-elder-scrolls-6-release-date-trailer-news/1100-6492383/), which is the next project from Bethesda Game Studios. The Fallout franchise is also particularly popular, with fans eager for Fallout 5(https://www.gamespot.com/articles/fallout-5-release-date-trailer-news/1100-6522412/). In June, a report said Microsoft was looking to increase its investment in some of Xbox's biggest franchises(https://www.gamespot.com/articles/microsoft-considering-spinning-off-xbox-speeding-up-elder-scrolls-and-fallout-game-releases-report/). The report singled out The Elder Scrolls, Fallout, and Halo, and said the aim was to speed up development on these projects. Microsoft's dramatic cuts to Xbox are the result of "catastrophic mismanagement"(https://www.gamespot.com/articles/catastrophic-mismanagement-and-ai-gambits-led-to-mass-xbox-layoffs-expert-says/) by Microsoft leadership as it chase the AI trend, some are saying.
🟩 Xbox, Multi-platformXbox Game Pass loses Dungeons of Hinterberg and 9 other games this month
Amid flailing subscriber numbers, Xbox Game Pass is losing several great games in July, including Dungeons of Hinterberg.
🟩 Xbox, Multi-platformDoom developer id reportedly cut in half as part of Xbox layoffs
As part of the mass layoffs hitting Xbox, Doom developer id Software has laid off around 50 percent of its staff, according to Game Developer. One source claimed to the publication that the cuts equate to more than 90 redundancies. Another source said that id's QA department was significantly impacted. The report was published the &8230;
🟩 Xbox, Multi-platformState Of Decay 3 Might Not Come To Xbox Game Pass, After Being Promised Last Month
Exactly a month ago, State of Decay 3 re-emerged at the Xbox Games Showcase(https://www.gamespot.com/articles/xbox-game-showcase-2026-all-the-biggest-announcements-so-far/) with a new gameplay trailer promising a 2027 release window--plus the game's inclusion on Xbox Game Pass. But the open-world survival game might not arrive on Microsoft's subscription service after all. Game File(https://www.gamefile.news/p/xbox-to-cut-20-of-workforce-plans) reports the company acquiring developer Undead Labs is under no requirement to put State of Decay 3 on Xbox Game Pass. The deal between Microsoft and the unknown purchaser doesn't contain "any Xbox-controlling terms," like being on the subscription service. That would take back what was stated when State of Decay 3 resurfaced(https://www.gamespot.com/articles/state-of-decay-3-finally-resurfaces-with-new-trailer-and-its-coming-to-ps5/) last month, as the game was announced for PS5 and Game Pass. https://www.youtube.com/watch?v=eoLOzgHvKxQ Yesterday, Xbox released details about Undead Labs and Hellblade developer Ninja Theory being sold off to mysterious buyers(https://www.gamespot.com/articles/state-of-decay-and-hellblade-devs-are-being-sold-but-buyers-remain-mysterious-for-now/). Game File notes we might learn about the company acquiring Undead Labs later this summer. Meanwhile, there are massive layoffs at Xbox(https://www.gamespot.com/articles/xbox-layoffs-studio-closures-and-spin-offs-everything-announced-today/), and Double Fine as well as Compulsion Games have once again gone back to independent studios. There were also job cuts at Id Software and ZeniMax Online Studios(https://www.gamespot.com/articles/xbox-layoffs-hit-id-software-and-zenimax-as-focus-shifts-to-bigger-franchises/). State of Decay 3 is set to feature shared worlds for up to four players, with a larger map than what was experienced in State of Decay 2. You can also sign up for alpha playtests on the State of Decay 3 website(https://playtest.stateofdecay.com/). The Best Xbox Game Pass Games In 2026 !4499283-game-pass-2025.jpg(https://www.gamespot.com/wp-content/uploads/original/1601/16018044/4499283-game-pass-2025.jpg?w=1024) !4674631-absolum.jpg(https://www.gamespot.com/wp-content/uploads/original/1601/16018044/4674631-absolum.jpg?w=1024) !4517812-the-alters.jpg(https://www.gamespot.com/wp-content/uploads/original/1601/16018044/4517812-the-alters.jpg?w=1024) !4656146-avatar.jpg(https://www.gamespot.com/wp-content/uploads/original/1601/16018044/4656146-avatar.jpg?w=1024) !4451894-4356216-avowedscreencombatkaixaurip.jpg(https://www.gamespot.com/wp-content/uploads/original/1585/15855271/4451894-4356216-avowedscreencombatkaixaurip.jpg?w=1024) !4451893-4270078-sse32ac94d7d1d6be7dd015d78f2b52aeb4cc282ed.1920x1080.jpg(https://www.gamespot.com/wp-content/uploads/original/1585/15855271/4451893-4270078-sse32ac94d7d1d6be7dd015d78f2b52aeb4cc282ed.1920x1080.jpg?w=1024) !4474783-ssd04f2e766f538d3680b28574ec97f06b3274aafc.jpg(https://www.gamespot.com/wp-content/uploads/original/1585/15855271/4474783-ssd04f2e766f538d3680b28574ec97f06b3274aafc.jpg?w=1024) View Images(https://www.gamespot.com/gallery/best-xbox-game-pass-games/2900-4001/)
🟩 Xbox, Multi-platformXbox Layoffs Included 37-Year Veteran Who Designed One Of Xbox’s Best Features Ever
The recent layoffs at Microsoft(https://www.gamespot.com/articles/xbox-layoffs-studio-closures-and-spin-offs-everything-announced-today/), including deep cuts at Xbox, impacted 4,800 people(https://www.gamespot.com/articles/catastrophic-mismanagement-and-ai-gambits-led-to-mass-xbox-layoffs-expert-says/) across the business. One of the staffers let go was Kevin LaChapelle, a 37-year Microsoft veteran who helped bring to market one of the best, most-beloved features in Xbox console history: backwards compatibility(https://www.xbox.com/en-US/games/backward-compatibility). LaChapelle, who was the vice president of the Xbox platform, confirmed on LinkedIn(https://www.linkedin.com/posts/kevin-lachapelle-933a4ai-will-add-my-name-to-the-list-of-people-activity-7480112628762161152-8Pxk/) that he was part of the cuts. He started at Microsoft in 1989 as a software designer engineer, and moved to different parts of the business over the decades. He started working on Xbox during the Xbox 360 days and later became a software engineering manager where he led the team responsible for delivering the popular backward compatibility program on Xbox One. This was the popular feature, announced at E3 2015, that allowed Xbox One owners to play Xbox 360 titles on the newer platform and later Xbox Series X|S as well. "Sitting in the auditorium when Phil announced the program at E3 2015 was incredible. The audience's reaction was unbelievable," he said. https://www.youtube.com/watch?v=cCGKATko82U An update in November 2021 that added 70+ games, including original Xbox and Xbox 360 games, was the final update to the backwards compatiblity catalog(https://www.gamespot.com/articles/xbox-backwards-compatibility-adds-70-more-games-today-as-microsoft-ends-the-program/1100-6498021/). After that, LaChapelle became the vice president and general manager for xCloud, which would become Xbox Cloud Gaming. In that role, he led the team from conception to launch, and LaChapelle is still a big believer in streaming for games. "I am a firm believer that all entertainment will eventually become streamed to you wherever you are. I look forward to watching how Xbox evolves going forward and I wish the team nothing but success," he said. One of the reasons Microsoft is making these cuts is because some of its strategic bets, including Xbox Game Pass, did not work out(https://www.gamespot.com/articles/new-xbox-ceo-admits-game-pass-bet-has-not-worked-out/). Part of the reason why, experts said, was because Microsoft failed to convince PC and cloud users to sign up for Game Pass(https://www.gamespot.com/articles/new-xbox-ceo-admits-game-pass-bet-has-not-worked-out/). The 4,800 layoffs at Microsoft amounted to about 2.1% of the company's global headcount. At Xbox specifically, 1,600 people lost their job this week, with another 1,600 set to be laid off in the next year, Microsoft said. In addition to layoffs, Microsoft is divesting of at least five studios. Ninja Theory and Undead Labs have been sold to unnamed buyers, while Compulsion Games and Double Fine are going independent again. Arkane Lyon has entered "consultation" under French labor rules(https://www.gamespot.com/articles/heres-whats-going-on-with-marvels-blade-and-its-developer-amid-xbox-reset/), and that process will decide the fate of the developer and its in-development game, Marvel's Blade.
🟩 Xbox, Multi-platformXbox’s New Plan After Brutal Cuts: Focus On The Thing Called Xbox
In the wake of mass layoffs at Xbox(https://www.gamespot.com/articles/xbox-layoffs-studio-closures-and-spin-offs-everything-announced-today/) and several studios exiting the company, Microsoft's gaming division has outlined it plans for growth. Some of these plans include a focus on its biggest IP, investing more in games like Minecraft, and removing several layers of management to streamline its studio model. One other major area of focus will be on Xbox hardware itself, as the company says its flagship console represents 80% of its current business. "In order to grow, we made a bunch of bets--and as we did that, we inherently didn't focus on the core business," Xbox CEO Asha Sharma said to Fortune(https://fortune.com/2026/07/06/exclusive-xbox-ceo-asha-sharma-job-cuts-studios-axed-layoffs/). "The number one measure of your strategy is what you put your resources behind, and we simply spread ourselves too thin. A healthy Xbox could weather the shock of the hardware crisis. With an unhealthy Xbox, it becomes really challenging, and it accelerates a lot of the changes we need to make." https://www.youtube.com/watch?v=4FatSqS3VYY If Xbox is going to focus more on its hardware, then it's doing so in an industry that's grappling with sharply increased costs and component shortages. This shift also comes during a time when Xbox hardware revenue has dipped(https://www.gamespot.com/articles/xbox-ceo-reacts-to-yet-another-disappointing-period-for-xbox/1100-6539711/) by a shocking 33%--per Microsoft's latest financial report--and several price hikes(https://www.gamespot.com/articles/microsoft-is-increasing-the-cost-of-xbox-consoles-again-starting-in-august/) on the Xbox Series X|S have only added to the company's woes. The Xbox Series X 1TB model now retails for $800 (it was originally $500 when it launched), while the Xbox Series S has shot up from its launch price of $250 to $500. A second increase is also looking likely, and the next-gen console Project Helix(https://www.gamespot.com/articles/next-xbox-release-date-specs-display-price/1100-6525379/) will likely also be extremely expensive. One method that Microsoft is reportedly looking at to cut down on costs is to forego the disc drive(https://www.gamespot.com/articles/next-gen-xbox-may-not-have-disc-drive-disc-to-digital-feature-coming-reports-say/) on Project Helix. Xbox rival Sony has already confirmed that it will not support PlayStation discs(https://www.gamespot.com/articles/next-gen-xbox-may-not-have-disc-drive-disc-to-digital-feature-coming-reports-say/) after 2028, and it's rumored that the PS6 won't have a disc drive(https://www.gamespot.com/articles/why-sony-is-killing-disc-based-playstation-games-and-the-implications-for-ps6-and-beyond/) either. Microsoft is reportedly working on a disc-to-digital feature that would enable users to bring their physical library with them into the next-gen, with the program said to support both Xbox One and Xbox Series X|S games. Meanwhile, Microsoft's Xbox restructuring hasn't been the subject of criticism across the games industry--a case of "catastrophic mismanagement," as one expert has described(https://www.gamespot.com/articles/catastrophic-mismanagement-and-ai-gambits-led-to-mass-xbox-layoffs-expert-says/) the news. With 3,200 people being laid off--roughly 20% of the Xbox workforce--the changes will also see Double Fine and Compulsion become independent studios(https://www.gamespot.com/articles/xbox-layoffs-studio-closures-and-spin-offs-everything-announced-today/), Ninja Theory and Undead Labs have been sold(https://www.gamespot.com/articles/state-of-decay-and-hellblade-devs-are-being-sold-but-buyers-remain-mysterious-for-now/), and Arkane Lyon(https://www.gamespot.com/articles/heres-whats-going-on-with-marvels-blade-and-its-developer-amid-xbox-reset/) has entered a mandatory consultation period to figure out what's next for the Marvel's Blade developer.
🟩 Xbox, Multi-platformObsidian Hit Hard By Xbox Layoffs, With 25% Of Devs Cut From Studio
Microsoft's mass layoffs had a heavy impact on the Xbox division(https://www.gamespot.com/articles/xbox-layoffs-studio-closures-and-spin-offs-everything-announced-today/), and Obsidian Entertainment, the studio behind The Outer Worlds, is one of many Xbox-owned studios where cuts were deep. Kotaku(https://kotaku.com/avowed-the-outer-worlds-pentiment-studio-obsidian-xbox-layoffs-2000713032) reports that between 60 and 70 people--roughly a quarter of the studio's workforce--have been let go. The talent laid off includes producers, QA testers, artists, and many others spanning different disciplines. Senior talent was not spared in the cuts, with Kotaku saying that some laid off were with the studio for over a decade. Others affected include the art director for The Outer Worlds and the studio's lone recruiter. Despite the cuts, it is said that work will commence on Grounded 2 and planned DLC for The Outer Worlds 2, but any plans beyond that are currently unknown. Obsidian has a storied history: Founded in 2003, the Irvine, California-based studio became known for Star Wars: Knights of the Old Republic 2, Fallout: New Vegas, and South Park: The Stick of Truth. Microsoft bought the studio in 2018 as part of an acquisition spree(https://www.gamespot.com/gallery/a-year-by-year-breakdown-of-phil-spencers-mixed-legacy-as-xbox-boss/2900-7553/6), and the studio has since shipped games including Grounded, Pentiment, and Avowed. 2025 was massive for Obsidian, as it released Avowed, The Outer Wilds 2, and Grounded 2 (in early access) all in the same year--but Obsidian studio design director Josh Sawyer said earlier this year that the triple release was due to poor planning and resource mismanagement, or in Sawyer's words, "the result of things going wrong." It's said that Obsidian will continue making games set in the Avowed universe(https://www.gamespot.com/articles/obsidian-focusing-on-more-games-in-avoweds-universe-but-not-the-outer-worlds-3-report/1100-6537866/), but a third entry in The Outer Worlds series is not on the docket. Meanwhile, Xbox layoffs also hit Id Software(https://www.gamespot.com/articles/xbox-layoffs-hit-id-software-and-zenimax-as-focus-shifts-to-bigger-franchises/), Bethesda Game Studios, and ZeniMax as a whole. These cuts are part of Xbox's initial wave of 1,600 layoffs, with about 3,200 total layoffs expected throughout Microsoft's fiscal year. Microsoft is cutting about 4,800 positions across the entire company--roughly 2% of its entire workforce.
🟩 Xbox, Multi-platformIO Interactive Regains Ownership Of Project Fantasy Following Xbox Split
!Game Informer News(https://www.gameinformer.com/sites/default/files/styles/bodydefault/public/2026/06/30/7d283510/project-fantasy-concept-IOinteractive.jpg.webp) IO Interactive has announced it has regained full ownership of its in-development online RPG Project Fantasy following its split from an external funding partner(https://gameinformer.com/2026/06/30/io-interactive-faces-layoffs-after-xbox-ends-partnership-for-its-upcoming-online-rpg) last week, which was later confirmed to be Xbox. The studio behind Hitman and 007 First Light will continue working on the project, but this shift means a reduction of its staff. The Copenhagen-based studio shared a message(https://x.com/IOInteractive/status/2074475151471571062) stating it will now fully fund Project Fantasy independently. However, IO writes that this shift means “we had to find a new balance for the long-term future of the studio, focused on the success of our main internal core titles instead of external projects and potential mobile game derivatives.” To this end, IO has had to make layoffs it had previously stated were necessary after Xbox pulled out of funding Project Fantasy. This includes the closure of its Istanbul subsidiary studio. “These are hard, but necessary decisions, in order to retain the long-term future of IO Interactive as one of the very few fully independent AAA developer and publisher, as well as to give Project Fantasy the best possible foundation to succeed under our own passion and direction. Project Fantasy is a game, a world, and an IP that we are wholly committed to, and we cannot wait to share the love with you.” Xbox told Bloomberg(https://www.bloomberg.com/news/articles/2026-06-30/microsoft-s-xbox-pulls-out-of-project-fantasy-video-game-from-io-interactive) it ceased supporting Project Fantasy after reevaluating the types of projects it wanted to invest in. This portfolio adjustment came ahead of the company announcing plans(https://gameinformer.com/2026/07/06/xbox-parts-ways-with-five-studios-over-3000-layoffs-announced) yesterday to lay off 3,200 employees over the next fiscal year, 1,600 of whom were terminated immediately. Xbox also spun off or sold five of its development studios – Compulsion Games, Double Fine Productions, Ninja Theory, Undead Labs, and Arkane Studios – in the midst of this massive restructure, For more on IO Interactive, read our review of its most recent release, 007 First Light, here(https://gameinformer.com/review/007-first-light/cinematic-flair).
🖥 Xbox, PCJohn Romero commiserates with ousted id devs as around half the studio reported axed, says he hopes someone is preserving its work like he did before he left
"I know what it feels like to leave id while id goes on."
🖥 Xbox, PCIO Interactive says Project Fantasy isn't dead, but confirms that layoffs are happening
This isn't the sort of thing that should be happening a month after the release of a major, successful game like 007 First Light, but such is the way of the games industry.