All articles tagged with #xbox layoffs
Developers at The Coalition are anxious about potential layoffs following the October 6 release of Gears of War: E-Day. Staff fear that cuts could occur before a scheduled Metacritic bonus payout in late October, rendering them ineligible for the reward. The anxiety stems from the recent dismissal of story director Juan Vaca and broader Microsoft gaming restructuring.
Juan Vaca, the story director for Gears of War: E-Day, was laid off by Microsoft on September 22, 2026, just four days after the game went gold and two weeks before its October 6 release. Vaca, who joined The Coalition in 2022, announced his termination on LinkedIn, stating he is open to new opportunities in games, film, and TV. This layoff is part of a broader Xbox restructuring that saw 268 employees cut, including significant changes to studios like Rare, World's Edge, and Obsidian. The timing of Vaca's dismissal, so close to the game's completion and launch, has drawn attention to the impact of corporate restructuring on individual developers.
Unionized Bethesda staff warn that Microsoft’s waves of layoffs could strip away the institutional knowledge and veteran talent needed to match the studio’s past high-quality Elder Scrolls and Fallout games, casting doubt on the upcoming The Elder Scrolls 6. Bethesda says it can still deliver, but workers disagree, highlighting ongoing severance negotiations and protests as development continues.
id Software’s Chris Hayes says it’s “impossible” to make triple-A games like 2016’s Doom with half the staff, arguing layoffs have gutted essential departments and that leadership doesn’t understand art or the business model; the piece also notes Microsoft’s Xbox reset cutting thousands of jobs and touches on unionisation talks and Game Pass economics.
ZeniMax Online Studios was hit hard by Xbox layoffs, canceling Project Blackbird and prompting founder Matt Firor’s departure; the studio pivoted Elder Scrolls Online to a seasonal live-service cadence. Season One has launched, but Morgan Goin says the update pace will slow due to staffing gaps and the in-house engine, with contractors unlikely to bridge the gap. ESO remains financially strong with over $2 billion in lifetime revenue.
Insider Gaming reports that, despite significant layoffs at id Software, a new DOOM game is already in early development, with Tom Warren of The Verge confirming ongoing work and suggesting the series will continue with more DOOM content beyond the Revelations DLC.
After a wave of Xbox-related layoffs shrinks ZeniMax Online Studios, the Elder Scrolls Online team says the game isn’t winding down or entering maintenance mode, and a revised roadmap will guide further updates and content, even as The Elder Scrolls 6 also faces cuts.
id Software posted a brief statement after recent Microsoft/Xbox layoffs, insisting the core crew remains intact and capable of building the studio’s signature games and tech, with the team size at roughly what it was during Doom 2016 and a pledge to support affected staff ahead of QuakeCon this August.
Amid Xbox’s ~3,200 layoffs, Obsidian Entertainment is reportedly moved onto a new Fallout title led by Josh Sawyer, with a canceled Avowed sequel and a planned reveal around 2027, as Bethesda concentrates on the Elder Scrolls and other major franchises.
Valve's Steam reportedly generated $11.1 billion in revenue in the first half of 2026, the platform's best six months on record, driven by growth in the Chinese market, higher prices on new releases, and publishers returning to Steam. Top titles include Forza Horizon 6, Resident Evil Requiem, and Crimson Desert, with indie hits Slay the Spire 2, Subnautica 2 and Meccha Chameleon also contributing. Meanwhile, Xbox and PlayStation are grappling with declining hardware revenues, layoffs, and Sony's plan to end discs in 2028, highlighting a widening gap between Steam's momentum and traditional console ecosystems.
The U.S. Federal Reserve has named Xbox CEO Asha Sharma to co-lead its Productivity and Jobs task force to study the economic impact of AI and other general-purpose technologies, alongside Marc Andreessen and Stanford economist Charles I. Jones. The appointment comes as Microsoft/Xbox reveals 3,200 layoffs through 2027, part of a broader strategic shift following Sharma’s rise to Xbox CEO earlier this year after joining Microsoft in 2024 as president of CoreAI.
Obsidian Entertainment, the studio behind The Outer Worlds and Avowed, is reportedly cutting about 60–70 jobs—roughly a quarter of its staff—as part of Microsoft's broader Xbox layoffs that total around 3,200 roles. The first wave hit Obsidian, with more cuts expected later this year, affecting roles across disciplines and even senior staff like the art director and the studio’s recruiter. Grounded 2 will continue, and Obsidian is slated to deliver more The Outer Worlds 2 DLC, though future projects remain uncertain. Obsidian was acquired by Microsoft in 2018 and has since released several titles.
After reports that Xbox laid off roughly 50% of id Software, concerns are rising about the future of DOOM and the id Tech engine, as veteran staff lament the decision and question how the studio will continue developing one of its flagship franchises. With DOOM: The Dark Ages’ expansion releasing today, the piece argues the cuts could undermine long‑term feasibility and explores potential pivots for leveraging or restructuring the studio’s technology, inviting reader input on whether the layoffs were necessary or excessive.
John Romero addressed reports of significant layoffs at id Software amid Xbox’s restructuring, offering condolences and urging digital preservation of the studio’s history as its legacy faces upheaval. With rumors of heavy cuts—ranging from roughly 50% of the Texas studio to as high as 95—the story notes the broader shift away from independence toward core franchises. Romero also highlights his own archival efforts and hopes others preserve id’s ongoing legacy (the Doom/Quake/Wolfenstein era), and mentions a plan to donate saved materials to The Strong National Museum of Play after his death.
John Romero expresses sympathy for id Software staff amid Xbox-wide layoffs and stresses preserving the studio's history and assets as The Dark Ages DLC launches, arguing the industry's legacy depends on digital preservation.