layoffs Archives

AppWizard

July 9, 2026

Obsidian is reportedly making a new Fallout game headed by Josh Sawyer after Microsoft pulled the plug on an Avowed sequel

Obsidian Entertainment has canceled several projects, including a sequel to Avowed, to focus on developing a new Fallout game. The layoffs at Xbox led to the departure of 52 employees, about 25% of Obsidian's workforce. The new Fallout game will be led by Josh Sawyer, the design director known for his work on Fallout: New Vegas. The cancellation of other projects, especially those in the Pillars universe, has disappointed some fans.

AppWizard

July 9, 2026

PC gamers remain skeptical of Steam’s AI disclaimers, poll shows many believe game devs are hiding it

A poll by GameDiscoverCo involving nearly 3,800 Steam users from June 25 to July 2, 2026, found that 43% of respondents are comfortable purchasing games with AI disclosures, while 31% view such disclosures negatively, and 8% refuse to buy games featuring them. Approximately 44% of participants read AI disclosures in detail, and 45% at least glance at them, indicating that 89% consider this information in their purchasing decisions. Trust in the accuracy of these disclosures is low, with only 17% believing developers fully disclose AI use, while 25% think many are transparent, and 35% feel only some provide accurate information. Additionally, 56% of respondents believe AI-assisted development tools should be disclosed, with only 8% disagreeing. Nearly 20% of games in Steam’s recent Next Fest event included a generative AI warning, a figure expected to rise as the industry evolves.

AppWizard

July 9, 2026

MindsEye developers protest against a fan event their own studio is hosting

MindsEye, an action game from Build a Rocket Boy, is set to have a playtest at the studio's Edinburgh headquarters, inviting community members and covering their travel costs. This comes after significant layoffs that affected over 400 employees, leading to protests organized by the Independent Workers Union of Great Britain, which criticizes the studio for spending on the playtest while having recently laid off staff. The union also alleges the studio has engaged in questionable practices, including employee surveillance. The playtest is seen as a strategy to regain favor with fans amid concerns about the studio's management and treatment of its workforce.

AppWizard

July 9, 2026

17 years later, Minecraft is finally adding somewhere to sit

Minecraft's latest update introduces cushions, allowing players to sit in the game for the first time since its launch 17 years ago. Cushions can be crafted using three Wool Slabs of the same color and are available in 16 color variants. The update also features straw beds, which are single-use and allow players to sleep without setting a spawn point, crafted from three Hay Bales to make four beds. The update, version 26.40.30, includes new abandoned camps in the Pale Garden and Flower Forest biomes and improvements to the Dappled Forest. Additionally, Microsoft announced significant layoffs affecting over 3,200 jobs across various Xbox-owned studios, marking a major restructuring in the industry.

AppWizard

July 9, 2026

Former Destiny 2 and Marathon director settles $200 million lawsuit against Sony and Bungie: ‘The outcome is one I am very satisfied with’

Christopher Barrett, former director at Bungie, has settled his lawsuit against Sony and Bungie after alleging a "premeditated scheme" to terminate his employment. He sought [openai_gpt model="gpt-4o-mini" prompt="Summarize the content and extract only the fact described in the text bellow. The summary shall NOT include a title, introduction and conclusion. Text: Former director Christopher Barrett, known for his pivotal roles in the development of Destiny 2 and Marathon, has reached a settlement in his lawsuit against Sony and Bungie. While the specific terms of the settlement remain undisclosed, Barrett expressed his satisfaction with the outcome, suggesting a resolution that aligns with his interests. Background of the Lawsuit Barrett's tenure at Bungie spanned nearly 25 years, during which he played a crucial role in shaping the Halo and Destiny franchises. His unexpected departure in 2024 was followed by allegations of inappropriate behavior, leading him to file a lawsuit seeking 0 million. In his claims, Barrett accused Sony and Bungie of orchestrating a "premeditated scheme" to terminate his employment, thereby evading the substantial financial obligations owed to him and positioning him as a scapegoat for the companies' broader challenges. Initially, Sony appeared poised to contest the lawsuit vigorously. The company's response included various communications between Barrett and female colleagues, which they argued illustrated a troubling pattern of misconduct. These communications allegedly featured inappropriate comments and requests, including drunken calls and sexually charged games. However, Barrett's legal team countered that Sony had misrepresented these interactions by selectively presenting text messages and conversations. Financial Implications In its defense, Sony provided a detailed account of Barrett's earnings following its acquisition of Bungie in January 2022. He received over million in 2022 and approximately .9 million in 2023, with an additional million slated for the years 2024 to 2026. This amount included payments for unvested restricted stock units and re-vested shares, underscoring the financial stakes involved in his termination. The acquisition itself was marked by a significant investment in talent retention, with Sony allocating .2 billion to ensure key personnel, including Barrett, remained with Bungie. However, as layoffs swept through the studio in subsequent years, the wisdom of these retention strategies came into question. The financial incentives designed to keep top talent on board began to seem less prudent amid the backdrop of workforce reductions. A Positive Resolution Despite the tumultuous circumstances surrounding his departure and the lawsuit, Barrett's settlement appears to have yielded a favorable outcome for him. While the exact figures remain undisclosed, it is reasonable to surmise that he may have secured a significant portion of the compensation he sought. This development comes shortly after Bungie announced layoffs affecting many members of the Destiny development team, highlighting the ongoing challenges within the studio. In a collaborative statement shared by Barrett on LinkedIn, both Sony and Bungie acknowledged his contributions to the success of their games, affirming that his name will be included in the credits for Marathon as the original game director. This recognition serves as a testament to Barrett's lasting impact on the gaming landscape, even amidst the complexities of his recent experiences." max_tokens="3500" temperature="0.3" top_p="1.0" best_of="1" presence_penalty="0.1" frequency_penalty="frequency_penalty"] million in damages following accusations of inappropriate behavior that led to his departure in 2024. Barrett received over million in 2022 and approximately .9 million in 2023, with an additional million expected from 2024 to 2026. Despite Sony's initial defense, which included claims of misconduct based on communications with female colleagues, Barrett's legal team argued that these were misrepresented. The settlement terms are undisclosed, but Barrett expressed satisfaction with the outcome. Both companies acknowledged his contributions and confirmed he will be credited as the original game director for Marathon.

AppWizard

July 9, 2026

Are you excited for a new Fallout game from Obsidian? You know, given everything

Microsoft has acquired Bethesda, leading to speculation about a new Fallout RPG being developed by Obsidian, with Josh Sawyer, director of Fallout: New Vegas, at the helm. Reports indicate that Obsidian has paused the production of an Avowed sequel and other projects to focus on this new Fallout game. However, this development occurs amidst significant layoffs at Xbox, raising concerns about team morale and stability.

AppWizard

July 8, 2026

Former Elder Scrolls Online designer laments the destruction of layoffs: ‘There’s really no one left and no changing it now’

Yesterday, layoffs at Xbox affected ZeniMax Online Studios, with reports indicating that half of its workforce was impacted. This has raised concerns about the studio's future and morale among remaining employees. Game director Matt Firor left the studio following the layoffs, which also resulted in the cancellation of a new MMO project called Project Blackbird. The situation has drawn comparisons to Amazon's New World, which was shelved due to a reassessment of its gaming strategy. A former developer expressed deep sadness over the loss of team camaraderie and creativity.

AppWizard

July 7, 2026

GOG Makes 75%-Rated PC Game Free for the Next 3 Days

Sony has adopted a digital-only model, while Xbox has announced significant layoffs. PC gamers are benefiting from numerous discounts on platforms like Steam, Epic Games Store, and GOG. GOG is offering the adventure game Silence for free from July 7 to July 10, allowing players to permanently add it to their library. Silence, developed by Daedalic Entertainment, features a narrative focused on 16-year-old Noah and his sister Renie, who become trapped in the world of Silence during an air raid. The game includes puzzles, memorable characters, and approximately 12 hours of gameplay. It is known for its hand-painted environments and emotional storytelling. Silence has a user approval rating exceeding 75% on Metacritic and typically retails for around . If players miss the giveaway, the game will still be available for purchase at a discount.

AppWizard

July 7, 2026

Microsoft needs to “reset Xbox,” says Asha Sharma, as the company lays off 3,200 employees

Xbox plans to reduce its workforce by approximately 3,200 employees by the end of the fiscal year on June 30, 2027, with an initial layoff of around 1,600 positions. CEO Asha Sharma expressed concerns about the company's health and announced a transition of four studios to new management. Xbox is facing financial challenges, operating at margins significantly lower than comparable entities, and the expected growth of Game Pass has not occurred. Compulsion Games and Double Fine Productions will return to independent status, retaining ownership of their intellectual properties. Ninja Theory and Undead Labs will also join new ownership structures. Bethesda is refocusing on its major franchises, and there are no cancellations of first-party games due to these reductions. Compulsion Games and Double Fine Productions expressed gratitude for support during this transition.

AppWizard

July 7, 2026

Even Obsidian couldn’t escape the Xbox cuts, with losses ranging from a 21-year veteran artist to an engineer who’d only been there 2 months

On July 6, Kotaku reported that layoffs at Obsidian Entertainment affected between 60 to 70 employees, nearly a quarter of its workforce of 285. Current and former employees shared experiences on social media, indicating an indeterminate number of developers were let go, including long-time artist Daniel Alpert and recent hire Wenzheng Huang. Employee Kate Dollarhyde described the layoffs as significant, and while Obsidian is bound by the WARN Act to provide notice for layoffs exceeding 50 employees, the California WARN Act Tracker does not show that Obsidian reported these layoffs. Despite producing successful titles like Pentiment and The Outer Worlds 2, the studio's future is uncertain amid Xbox's anticipated layoffs and financial struggles.