Microsoft despatched shockwaves throughout the online game business this week after shedding round 9,000 staff, together with an unknown (however evidently vital) variety of staff inside its online game division.
We’re nonetheless trying to know the total extent of the cuts, with Microsoft refusing to supply readability regardless of being approached a number of occasions for remark by presumably each publication below the solar.
The corporate did discover the time to inform us that it is no stranger to creating cutbacks “even in one of the best of occasions.” We think about these phrases will probably be massively reassuring for these nonetheless in a job. It additionally stated it hopes to empower its remaining staff to “spend extra time specializing in significant work by leveraging new applied sciences and capabilities.” What may that probably be shorthand for?
Regardless of having racked up a good bit of expertise shedding staff (that is the fourth main layoff spherical on the firm in 18 months), Microsoft nonetheless would not appear able to treating the scenario with the respect it deserves. Bloomberg reporter Jason Schreier famous that employees at ZeniMax On-line Studios had their Slack abruptly deactivated, leaving many staff in existential limbo whereas they waited to listen to whether or not or not they nonetheless had a future on the firm.
In the meantime, IGN obtained an inner memo from Xbox boss Phil Spencer through which he selected to kick off the layoff announcement by telling Xbox staffers how the corporate’s platform, {hardware}, and online game roadmap have “by no means regarded stronger.”
Hey Siri, present me the definition of “tone deaf.”
I am now dangerously near turning this right into a scathing op-ed, so I am going to chunk my tongue and as an alternative give you a relatively sobering rundown of this week’s largest headlines. There’s a bit of fine information in there, however there is not any denying it has been a brutal few days.
by way of Recreation Developer // We may have crammed this week’s complete column with tales referring to layoffs inside Microsoft’s online game division. The corporate’s refusal to reply questions in regards to the true influence of the cuts means the business remains to be trying to know the total scale of the scenario, however proper now it looks like a whole lot of individuals have misplaced their jobs throughout main studios such Uncommon, King, ZeniMax On-line Studios, Flip 10, and The Initiative—the latter of which seems to have been utterly shuttered. Stories point out notable initiatives have additionally been cancelled, together with Everwild, Good Darkish, and an unnamed MMORPG that had been in improvement for years. It is one other darkish second for an organization that has seemingly completed nothing however downsize after spending nearly $70 billion to buy Activision Blizzard.
by way of The Verge // Microsoft has denied that Microsoft Gaming CEO and Xbox boss Phil Spencer is making ready to exit after over a decade on the helm. As information of the corporate’s fourth spherical of mass layoffs sparked chaos, one outstanding Name of Obligation leaker claimed that Spencer was making ready to depart and would get replaced by Xbox president Sarah Bond. Microsoft refuted that rumor in an announcement to The Verge and insisted “Phil shouldn’t be retiring anytime quickly.”
by way of Recreation Developer // The co-founders of Unknown Worlds, the studio behind Subnautica, made sudden exits this week. Dad or mum firm Krafton broke the information and recommended it tried to persuade CEO Ted Gill, recreation director Charlie Cleveland, and technical director Max McGuire to stay with the studio in some capability. It is unclear why the trio exited or what their departure means for Subnautica 2, which is able to apparently launch in early entry later this 12 months.
by way of Recreation Developer // Earlier this week, former Unity senior shopper companion Rod Stafford was sentenced to 22 years in jail within the UK after being charged with 33 sexual offences. Stafford represented Unity at a number of business occasions in his position, sitting on panels and giving talks within the identify of the engine maker. That is regardless of Stafford having a documented historical past of sexual misconduct courting again to his time within the armed forces in 2004. Unity has failed to deal with the way it managed to rent somebody with a public historical past of sexual misconduct and place them ready of energy. The corporate has additionally refused to make clear when Stafford departed, however Recreation Developer understands he attended GDC in March 2025 as a member of the Unity delegation—simply weeks earlier than his trial started.
by way of Recreation Developer // We heard reviews of layoffs at Do not Nod Montreal final week and the corporate ultimately determined to substantiate the information. Though it did not particular how many individuals have been made redundant, it claimed the cuts mirror the “difficult actuality of sustaining sustainable operations in a troublesome financial context.” Social media posts from impacted staff described the transfer as a “wave off layoffs” and indicated the information got here as a shock.
by way of Axios // Lastly some excellent news. G/O Media has offered online game information outlet Kotaku to European media firm Keleops in a transfer that might allow the publication to develop. Axios confirmed Kotaku’s editorial staff will stay in place and that Keleops plans to rent further expertise, doubtlessly bucking a pattern of layoffs and downsizing that has decimated the sport media panorama lately.
by way of Recreation Developer // This week, the FTC paid out $126 million in refunds to Fortnite gamers who have been charged for undesirable in-game purchases. The U.S. regulator forked out the compensation to individuals it stated had been duped by “darkish patterns” utilized by Epic Video games to trick Fortnite gamers into spending money. The payouts come after a 2023 settlement between the FTC and Epic, which denied deliberately deceptive gamers however agreed to pay $245 million in compensation to settle the problem. The FTC beforehand issued refunds value $72 million in December 2024, that means it has now paid out nearly $200 million in compensation—and there is nonetheless extra to return.
by way of Recreation Developer // After shedding half of its workforce earlier this 12 months, Myst developer Cyan Worlds confirmed it is chopping much more jobs. The corporate did not disclose how many individuals have been let go however confirmed it has undertaken one other “spherical of layoffs.” In March, the studio stated it was struggling to navigate “uneven waters” and claimed “business situations have pressured us into a tough spot the place we’re having to weigh the way forward for our studio in opposition to the month-to-month realities of recreation improvement.”
by way of France 24 // Three former Ubisoft executives—Thomas François, Serge Hascoet, and Guillaume Patrux—have been discovered responsible of enabling a tradition of sexual and psychological harassment on the Murderer’s Creed writer. A court docket in France issued suspended jail phrases to all three males. Former editorial vp François was convicted on a cost of tried sexual assault and handed a suspended three-year time period. Former chief inventive officer Hascoet was hit with an 18-month suspended sentence, whereas former video games director Patrux obtained a 12-month suspended sentence.
by way of GameSpot // Treatment instructed GameSpot its first self-published title, FBC: Firebreak, has underwhelmed at launch. The co-op shooter landed in mid-June however estimates point out it had fewer than 300 concurrent gamers on Steam as of final week. Treatment has now conceded it “had hoped for a greater launch.” The title, additionally accessible on subscription companies like Xbox Recreation Go and PlayStation Plus, attracted 1 million gamers throughout all platforms however now the Finnish studio should determine the right way to hold them round for the lengthy haul. “The staff right here is super-motivated to proceed constructing the sport and responding to participant suggestions,” stated studio comms director Thomas Puha. “We already reacted throughout launch week with patch 1.2, making some large modifications to the sport. As Treatment does, we’ll do issues with smaller groups in our method and attempt to clear up challenges creatively.”
