Latest Xbox Game News & Updates
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🎮 PlayStation, Xbox, Multi-platformWhat PlayStation's digital-only future means for PS6, explained
While Sony's end of disc games doesn’t mention PlayStation 6, there are several things we can infer about the its plans for a new wave of hardware.
🖥 Xbox, PCXbox reportedly wants to put a stake in Blade and sell off Arkane, even though Todd Howard says development is going well
Eventually we'll just be left with Halo and Call of Duty.
🖥 Xbox, PC'I cannot do my job when Microsoft refuses to do theirs', say Xbox union workers as destructive reset looms from a company that spent over $80 billion on AI last year
"Why would a game developer bother to put forward their best work under these conditions?"
🟩 Xbox, Multi-platformXbox upheaval news: Rumors, changes, and cancelled games in 2026
Xbox CEO Asha Sharma has implemented many changes over the past month. Here's every rumor, change, and game cancellation in our running news roundup.
🖥 PlayStation, Xbox, PCFresh off of dumping on Xbox's flailing, former Sony exec says PlayStation's pullback from PC releases doesn't make any sense either
Shawn Layden is a man with opinions, and now that he's out of the game he doesn't mind sharing them.
🟩 Xbox, Multi-platformIO Interactive Faces Layoffs After Xbox Ends Partnership For Its Upcoming Online RPG Project Fantasy
!Game Informer News(https://www.gameinformer.com/sites/default/files/styles/bodydefault/public/2026/06/30/7d283510/project-fantasy-concept-IOinteractive.jpg.webp) In 2023, Hitman and 007 First Light developer IO Interactive announced a surprising new IP, an online RPG codenamed Project Fantasy. While that game is still on the way, it has hit a snag that will result in layoffs. IO posted an update(https://x.com/IOInteractive/status/2072005107797893315) on the game, stating that “A relationship with an external partner on our own IP, Project Fantasy, has come to an end. This means we have to adapt to this new reality and its short-term consequences, including staffing decisions, which is what is happening as we write this update, and we are fully committed to supporting those affected through this challenging transition.” Bloomberg(https://re-evaluates investment decisions) has reported that Xbox confirmed to the outlet that it was the "external partner" funding the project and that it has pulled out of the relationship as it re-evaluates its investments. An Xbox spokesperson told Bloomberg that despite the news, the company is not investing less in video games, but rather plans to invest the same amount as it did last year. "What's changing is where we're investing and the kinds of projects we're backing," said the spokesperson. Despite this setback, IO remains committed to continuing work on Project Fantasy, writing that it is “a game, a world, and an IP that we absolutely love and remain 100% committed to, now and in the future. This wonderful universe will see the light of day.” > Dear gaming community, > > For a good while, it has been all positive news from IO Interactive. We remain humbled and honored by the response to our latest outing with a young, unproven Bond. A bold new story and a take on one of the most famous characters in entertainment, which… > > — IO Interactive (@IOInteractive) June 30, 2026(https://x.com/IOInteractive/status/2072005107797893315?refsrc=twsrc%5Etfw) Project Fantasy was revealed in February 2023. At the time IO wrote of the game(https://ioi.dk/project-fantasy?utmsource=Twitter&utmcampaign=Spring23Rec&utmmedium=Social) that it is “A world and a game built from the core to entertain players and expand for many years to come. It feels familiar, yet at the same time IOI is going on a journey unlike any we have been on before.” “For many, this journey is also a deeply personal one that began long before we started making games for a living – and it started with the fantasy genre,” IO wrote in Project Fantasy’s announcement post. “From the “Fighting Fantasy” books compelling you to choose your path, alone, against wizards, lizards, and thief kings. To the togetherness, camaraderie, agony, and delight found around the tabletop. For some it meant taking the role of a game master: Part storyteller, part AI opponent, part guide, part villain. For everyone around that table it meant creativity, imagination, building a world together, and a shared goal in creating a great game experience.” Earlier this year, IO released 007 First Light to positive reviews and strong sales. You can read our review of that game here(https://gameinformer.com/review/007-first-light/cinematic-flair).
🟩 Xbox, Multi-platformHideo Kojima’s OD Is Reportedly Safe From Upcoming Xbox Cuts
Hideo Kojima's Xbox console-exclusive horror game, OD(https://www.gamespot.com/games/od/), is reportedly safe amidst reports and rumors of studio closures, layoffs, and game cancellations at Xbox loom. According to a report from IGN(https://www.ign.com/articles/hideo-kojimas-xbox-horror-game-od-is-safe-from-microsofts-reset-plan-but-other-games-are-on-the-chopping-block), a source familiar with Microsoft's Xbox plans has stated OD remains in development at Kojima Productions and will still be published by Xbox. Not much is known about OD(https://www.gamespot.com/articles/hideo-kojimas-od-release-date-gameplay-and-everything-we-know/1100-6533769/), but it was announced during an Xbox showcase in June 2022, with only a few brief glimpses since. It is set to star three actors-- Sophia Lillis, Hunter Schafer, and the late Udo Kier--and is being made in collaboration with director Jordan Peele. Kojima said in a recent interview with Entertainment Weekly(https://ew.com/xbox-25th-anniversary-hollywood-adaptations-cover-story-exclusive-12003252) that while pitching OD, most people didn't understand the concept. Former Xbox CEO Phil Spencer, however, understood, resulting in a partnership between Kojima Productions and Xbox. When OD will release is unknown, but news that its development will continue comes as Xbox seems poised to undergo a painful transition under new CEO Asha Sharma. It was just earlier today that 007 First Light developer IO Interactive announced layoffs(https://www.gamespot.com/articles/hitman-007-first-light-studio-begins-layoffs-as-its-fantasy-rpg-project-suffers-setbacks/) after it was confirmed by Bloomberg that Microsoft had pulled funding for the studio's upcoming Project Fantasy game. In a statement(https://www.gamespot.com/articles/xbox-focusing-on-highest-priorities-claims-its-not-cutting-back-overall-spending-on-games/), Microsoft said it would not be "reducing our overall investment in games," but changing "where we're investing and the kinds of projects we're backing." A number of Xbox studios and games are reportedly on the chopping block, with the possibility of some being spun out from under Xbox, being sold to other companies, or being closed entirely. One game said to be in danger of cancellation is Marvel's Blade(https://www.gamespot.com/articles/microsoft-could-cancel-marvels-blade-and-close-its-developer/), from developer Arkane. Blade was announced in 2023 but no gameplay has been shown. In a quote(https://www.ign.com/articles/bethesda-boss-todd-howard-saw-marvels-blade-in-may-says-arkane-doing-a-really-really-great-job) from May, Bethesda's Todd Howard said he recently saw the game and that Arkane was doing a "really, really great job." According to 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), at least five studios, including Arkane, Compulsion Games (which has already reportedly seen layoffs(https://www.gamespot.com/articles/xbox-layoffs-appear-to-be-starting-with-south-of-midnight-dev-compulsion/)), Double Fine, Ninja Theory, and Undead Labs, are all in danger. Mass layoffs are said to be coming around July 6, according to the report, and will hit "most parts of Xbox."
🟩 Xbox, Multi-platformReport: Microsoft Is Considering Shutting Down Arkane Studios And Canceling Marvel’s Blade
!Game Informer News(https://www.gameinformer.com/sites/default/files/styles/bodydefault/public/2023/12/14/0281a995/bladeconcept2.jpeg.webp) According to a new report by The Verge(https://www.theverge.com/report/959467/microsoft-xbox-cancel-blade-game-arkane-studios-closure?viewtoken=eyJhbGciOiJIUzI1NiJ9.eyJpZCI6Inp0bjNNQk1pVm0iLCJwIjoiL3JlcG9ydC85NTk0NjcvbWljcm9zb2Z0LXhib3gtY2FuY2VsLWJsYWRlLWdhbWUtYXJrYW5lLXN0dWRpb3MtY2xvc3VyZSIsImV4cCI6MTc4MzI3MDkyMSwiaWF0IjoxNzgyODM4OTIxfQ.pOFMRE5pUQgOYGX0scwb6LrEhrfZuecr50Fysx3fd8&utmmedium=gift-link), Microsoft is considering closing Arkane Studios and canceling its upcoming title, Marvel’s Blade(https://gameinformer.com/the-game-awards-2023/2023/12/07/marvels-blade-is-coming-from-the-makers-of-deathloop-and-dishonored). This studio closure would be among the several reportedly planned to take place(https://gameinformer.com/2026/06/15/compulsion-games-and-other-xbox-studios-reportedly-at-risk-of-being-shut-down) in the next week as part of a larger "Xbox reset"(https://gameinformer.com/2026/06/11/report-xbox-preparing-for-significant-layoffs-as-new-ceo-asha-sharma-details-xbox-0). On June 15, reports surfaced from various news outlets that Microsoft is planning to either close or sell off multiple studios in its gaming division. While nothing has been officially announced or confirmed, five have been named by reporters so far: Compulsion Games (South of Midnight), Double Fine (Psychonauts), Ninja Theory (Hellblade)(https://gameinformer.com/2026/06/17/a-new-report-claims-xbox-had-already-planned-to-close-ninja-theory-despite-senua), and, most recently, Undead Labs (State of Decay), as reported by GamesBeat(https://gamesbeat.com/cwa-represented-workers-at-xbox-criticize-microsoft-management-and-pending-layoffs/). These studios have been said to be in various stages of negotiations with Microsoft about their futures. Xbox studios that won’t be shuttered are still expected to undergo layoffs. The Verge reports that sources familiar with Microsoft’s plans state that Dishonored and Deathloop developer Arkane Studios is also under consideration for closure or sale. Arkane, based in Lyon, France, was acquired by Xbox as part of its larger purchase of ZeniMax(https://gameinformer.com/2021/03/08/microsoft-zenimax-bethesda-acquisition-for-75-billion-officially-approved-by-eu) in 2021, which also gave the company Bethesda and id Software. Under the Xbox umbrella, Arkane Lyon specifically has released Deathloop(https://gameinformer.com/review/deathloop/deathloop-review-the-joys-of-death-and-dying). Arkane’s former American branch, Arkane Austin, the team behind 2019’s Prey, was shuttered by Xbox in 2024(https://gameinformer.com/news/2024/05/07/xbox-is-shutting-down-arkane-austin-tango-gameworks-and-more) following the negative reception to its 2023 co-op action game Redfall. Arkane Studios’ next announced project is Marvel’s Blade, an action game based on the popular hero first revealed at The Game Awards 2023. No gameplay has been shown for the title, but it’s been described as a single-player, mature-rated third-person action-adventure game set in Paris. According to The Verge’s sources, Blade was supposed to debut later this year, but its launch date was internally delayed to 2027 (the game has no publicly known release window). Blade is also reportedly running over budget. This news comes a week after Entertainment Weekly(https://ew.com/xbox-25th-anniversary-hollywood-adaptations-cover-story-exclusive-12003252) published a large feature covering the state of Xbox, in which Bethesda’s Todd Howard provided a brief comment about Blade and Arkane as a whole. "I'm not at liberty to say when we'll see more," Howard teases, "but I saw some stuff just yesterday on May 21 and the folks at Arkane Studios, the developers are doing a really, really great job." All eyes are looking toward next week for the shoe to drop on all of these reports, given that it will be the end-of-quarter financial calls for Microsoft, which is presumably why the company has not made any official layoffs announcement yet. Source: The Verge(https://www.theverge.com/report/959467/microsoft-xbox-cancel-blade-game-arkane-studios-closure?viewtoken=eyJhbGciOiJIUzI1NiJ9.eyJpZCI6Inp0bjNNQk1pVm0iLCJwIjoiL3JlcG9ydC85NTk0NjcvbWljcm9zb2Z0LXhib3gtY2FuY2VsLWJsYWRlLWdhbWUtYXJrYW5lLXN0dWRpb3MtY2xvc3VyZSIsImV4cCI6MTc4MzI3MDkyMSwiaWF0IjoxNzgyODM4OTIxfQ.pOFMRE5pUQgOYGX0scwb6LrEhrfZuecr50Fysx3fd8&utmmedium=gift-link)
🟩 Xbox, Multi-platformXbox pulls out of partnership with Hitman developer IO Interactive
Xbox was meant to fund and publish IO Interactive, but is now backing out of that deal. As such, IOI may face layoffs.
🟩 Xbox, Multi-platformXbox Focusing On “Highest Priorities,” Claims It’s Not Cutting Back Overall Spending On Games
Microsoft has confirmed that it pulled out of funding Hitman developer IO Interactive's new fantasy game(https://www.gamespot.com/articles/hitman-007-first-light-studio-begins-layoffs-as-its-fantasy-rpg-project-suffers-setbacks/), and it's because the company is re-focusing its spending on the "highest priorities" for the business. Speaking to Bloomberg(https://www.bloomberg.com/news/articles/2026-06-30/microsoft-s-xbox-pulls-out-of-project-fantasy-video-game-from-io-interactive?accessToken=eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJzb3VyY2UiOiJTdWJzY3JpYmVyR2lmdGVkQXJ0aWNsZSIsImlhdCI6MTc4Mjg0MTc5NiwiZXhwIjoxNzgzNDQ2NTk2LCJhcnRpY2xlSWQiOiJUSEdISUtLSVAzSUEwMCIsImJjb25uZWN0SWQiOiJCMUVBQkI5NjQ2QUM0REZFQTJBRkI4MjI1MzgyQTJFQSJ9.X7fWJXMkER0LX8wjbPlqWJNXJqjEfaYkVxpStwD114&leadSource=uverify%20wall), a Microsoft spokesperson said Xbox is "taking a fresh look at where we invest so we're focusing on our highest priorities." !(https://www.gamespot.com/wp-content/uploads/2026/06/XboxReset-2.png?w=1024) Major changes are afoot at Xbox. The statement went on to claim that Microsoft is "not reducing our overall investment in games," adding that the total amount of investment this year should be about the same as it was last year. "What's changing is where we're investing and the kinds of projects we're backing," Microsoft said. IO Interactive said its fantasy game, which is in development under the working title Project Fantasy, "will see the light of day." However, it remains to be seen how IO will go about doing that. As part of the shakeup, IO is laying off staff, though it's not immediately clear how many people are affected. In addition to Project Fantasy, many are hoping to see IO make a sequel to 007 First Light(https://www.gamespot.com/articles/007-first-light-sequel-sounds-like-a-matter-of-when-not-if/). As for Xbox, the company is undergoing a "reset" of its business(https://www.gamespot.com/articles/microsoft-boss-wants-xbox-to-start-pulling-its-weight-financially/?thumbnailid=1791632) under the leadership of Xbox CEO Asha Sharma. This is reportedly going to include mass layoffs, studio closures (or divestitures), and game cancellations(https://www.gamespot.com/articles/microsoft-could-cancel-marvels-blade-and-close-its-developer/). A report said the cuts will begin on July 6(https://www.gamespot.com/articles/microsoft-could-cancel-marvels-blade-and-close-its-developer/).
🖥 PlayStation, Xbox, PC, Multi-platformArkane Studios and its Blade game may be shuttered as part of upcoming Xbox layoffs
Xbox is gearing up for a massive wave of layoffs that may include Dishonored developer Arkane Studios, which is currently working on Marvel's Blade.
🖥 Xbox, PCAhead of next week's expected Xbox bloodbath, IO Interactive loses funding for its online fantasy RPG
The studio says it remains "100% committed" to Project Fantasy, but its future is now very uncertain.