layoffs Archives

AppWizard

June 21, 2026

5 promising games recently cancelled by Microsoft

Microsoft is undergoing a restructuring that includes layoffs across its game studios and further job cuts and studio closures as part of the "Xbox reset" initiated by new CEO Asha Sharma. This initiative has resulted in the cancellation of several game projects, including: - Odyssey: Shelved in 2024 after challenges in development, including a switch from Unreal Engine to an internal engine. - Everwild: Canceled in 2025 after years of development and at least one reboot. - Perfect Dark: The reboot was canceled in 2025 despite a positive gameplay reveal, with reports of interest from Take-Two Interactive. - Contraband: Development ceased in 2025, leaving the future of the co-op smuggling game uncertain. - Project Blackbird: Canceled in 2025 after over six years of development due to financial concerns regarding the investment required for an MMO. Following the cancellation of Project Blackbird, some team members formed a new studio named Sackbird.

AppWizard

June 21, 2026

The team behind bullet hell FPS Luna Abyss just got laid off, less than a month after the game’s release

Luna Abyss, a game that blends first-person shooters with bullet hell mechanics, has faced significant challenges following the announcement of layoffs affecting its entire development team. The news was shared by Hollie Emery, CEO of Kwalee Labs, on June 16, stating that the decision was beyond their control. As of now, the game has a concurrent player count of 43 and a peak of 317 players since its release on May 21. Despite its innovative gameplay, the layoffs have overshadowed its potential success.

AppWizard

June 20, 2026

The videogame market is as big as ever, with PC leading growth—global games revenue surpassed the $200 billion mark in 2025

The global games market closed 2025 at 1.6 billion, reflecting a growth of 9.1% year over year, marking the first time it has crossed the 0 billion threshold. This growth occurred despite underwhelming performances from key players like Nintendo and a modest growth trajectory in the console market. The industry is currently experiencing significant consolidation and layoffs, alongside rising hardware prices.

AppWizard

June 18, 2026

PlayerUnknown’s survival game becomes free-to-own and offers Steam refunds ‘without restrictions on playtime or how long ago you bought the game’

Prologue: Go Wayback! has exited early access on Steam, but is considered incomplete with no further development plans. Launched in early access in 2025 by PlayerUnknown Productions, the game faced significant challenges, including staff layoffs, leading to a halt in development. The studio, founded by Brendan Greene, aimed to use the game as a testing ground for its Melba game engine, designed for creating large procedural worlds. A free tech demo, Preface: Undiscovered World, is available in early access. The final version of Prologue includes new features such as enhanced paths, mobile weather monitors, and improvements in cooking, lighting, clouds, and fog.

AppWizard

June 16, 2026

1 Million Users Donate To Rescue Session Messenger From Shutdown

Session, a decentralized encrypted messenger, has over a million monthly users and has secured its future through community donations after facing a funding crisis earlier this year. The Session Technology Foundation had to reduce its paid staff and warned of a potential closure in July due to a significant financial shortfall. However, the community raised sufficient funds to prevent shutdown, allowing development to continue until at least 2027. The majority of contributions came from everyday users passionate about privacy communication. Session operates without requiring phone numbers and uses a decentralized network to enhance privacy. Under the leadership of Jason Rhinelander, the team is focusing on new features like post-quantum encryption. The organization also aims to achieve self-sustainability with a new paid Pro tier. Co-founder Chris McCabe's public appeal for support in March preceded staff layoffs on April 9, and Ethereum co-founder Vitalik Buterin previously donated 128 Ether (ETH) to assist the foundation.

AppWizard

June 15, 2026

Xbox is reportedly closing South of Midnight studio Compulsion Games after bragging about its award-winning developers earlier this year

Compulsion Games, known for titles like We Happy Few and South of Midnight, may be facing imminent closure as Microsoft’s gaming division undergoes significant layoffs and restructuring. Reports indicate that Compulsion and Double Fine are in negotiations to potentially spin off to avoid shutdown. Employees have expressed concern over job security, with many searching for new opportunities. Compulsion Games, founded in 2009 and based in Montreal, received critical acclaim for its recent title, South of Midnight, which won several awards. Despite previous praise from Xbox executives for the studio's achievements, the future remains uncertain amid corporate changes.

AppWizard

June 15, 2026

Xbox Game Studios head and chief of staff step down as ‘Xbox reset’ looms

Craig Duncan has announced his departure from the role of head of Xbox Game Studios after a tenure of just over a year and a half. He previously led Rare and guided the development of Sea of Thieves for nearly 13 years. His promotion in 2024 placed him in charge of all Microsoft’s gaming studios, including Double Fine, Halo Studios, inXile, Obsidian, Playground Games, and The Coalition. Concerns have been raised about the sustainability of Xbox's rapid studio acquisitions, with speculation about upcoming restructuring efforts and significant layoffs anticipated, potentially affecting studios like Compulsion Games, Double Fine, and Ninja Theory.

Winsage

June 15, 2026

Should Xbox CEOs have term limits, and did this week show why the question matters?

Microsoft's Xbox division is facing significant challenges, including a margin crisis and the need for substantial organizational changes, as stated by the head of Xbox. The company is preparing for significant layoffs and budget cuts while emphasizing its commitment to console gaming despite the evolving landscape. Xbox is struggling to articulate its value to potential players and is dealing with the impact of rising RAM prices and recent game failures. Phil Spencer, the CEO, has been instrumental in revitalizing the brand but is also associated with the current difficulties, raising questions about leadership transitions in the future.

Winsage

June 12, 2026

“Xbox will dissolve into Windows,” ex PlayStation boss says, which is Microsoft’s “strength”

Reports indicate that Xbox is preparing for significant company-wide layoffs expected at the end of June 2026 as part of a restructuring initiative led by new CEO Asha Sharma. The exact number of job losses and affected departments are currently uncertain. Shuhei Yoshida, a former executive at Sony Interactive Entertainment, suggested in a tweet that "Xbox will dissolve into Windows," hinting at a potential structural transformation within the company. Xbox has been experiencing declining hardware sales and has started porting flagship titles to the PlayStation 5. Additionally, there are rumors that the next generation of Xbox, referred to as Project Helix, may utilize Windows instead of the traditional Xbox operating system.

AppWizard

June 4, 2026

‘We have a great relationship with IO Interactive,’ Amazon says, but it won’t commit to bringing the studio back for future Bond games

Jeff Gattis, the general manager of Amazon Gaming, indicated a potential shift in the development of future James Bond games, suggesting that sequels might be produced by MGM and possibly Amazon Game Studios, which could mean IO Interactive may step back from its Bond responsibilities. An Amazon spokesperson clarified that the company is not entirely moving away from IO Interactive, though future plans remain unclear. Amazon's gaming division has faced challenges, including significant layoffs and project cancellations. Gattis expressed a belief in the convergence of television and video games, suggesting that major intellectual properties will need to integrate video game narratives. He did not confirm IO Interactive's involvement in future Bond games, stating that decisions regarding the next Bond game are still being considered. IO Interactive has not publicly responded to these developments.