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 making an attempt to know the total extent of the cuts, with Microsoft refusing to offer 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 the perfect of occasions.” We think about these phrases might be vastly reassuring for these nonetheless in a job. It additionally mentioned it hopes to empower its remaining staff to “spend extra time specializing in significant work by leveraging new applied sciences and capabilities.” What might that presumably 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 does not appear able to treating the state of affairs with the respect it deserves. Bloomberg reporter Jason Schreier famous that workers 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 inside memo from Xbox boss Phil Spencer during 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 seemed 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 chew my tongue and as an alternative give you a moderately sobering rundown of this week’s largest headlines. There’s a bit of fine information in there, however there isn’t any denying it has been a brutal few days.
through Recreation Developer // We might have crammed this week’s whole column with tales referring to layoffs inside Microsoft’s online game division. The corporate’s refusal to reply questions concerning the true affect of the cuts means the business remains to be making an attempt to know the total scale of the state of affairs, however proper now it looks as if a whole bunch 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. Studies point out notable tasks have additionally been cancelled, together with Everwild, Good Darkish, and an unnamed MMORPG that had been in growth for years. It is one other darkish second for an organization that has seemingly finished nothing however downsize after spending virtually $70 billion to buy Activision Blizzard.
through 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 distinguished Name of Responsibility 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 just isn’t retiring anytime quickly.”
through 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 advised it tried to persuade CEO Ted Gill, sport 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 yr.
through Recreation Developer // Earlier this week, former Unity senior shopper associate 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 title of the engine maker. That is regardless of Stafford having a documented historical past of sexual misconduct relationship again to his time within the armed forces in 2004. Unity has failed to handle the way it managed to rent somebody with a public historical past of sexual misconduct and place them able 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.
through 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 replicate 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.
through Axios // Lastly some excellent news. G/O Media has bought online game information outlet Kotaku to European media firm Keleops in a transfer that would allow the publication to develop. Axios confirmed Kotaku’s editorial staff will stay in place and that Keleops plans to rent further expertise, probably bucking a pattern of layoffs and downsizing that has decimated the sport media panorama lately.
through 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 folks it mentioned 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 difficulty. The FTC beforehand issued refunds price $72 million in December 2024, that means it has now paid out virtually $200 million in compensation—and there is nonetheless extra to return.
through Recreation Developer // After shedding half of its workforce earlier this yr, 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 mentioned it was struggling to navigate “uneven waters” and claimed “business circumstances have compelled 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 sport growth.”
through 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 vice chairman François was convicted on a cost of tried sexual assault and handed a suspended three-year time period. Former chief artistic officer Hascoet was hit with an 18-month suspended sentence, whereas former video games director Patrux acquired a 12-month suspended sentence.
through 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 out there on subscription providers like Xbox Recreation Cross and PlayStation Plus, attracted 1 million gamers throughout all platforms however now the Finnish studio should determine learn how 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,” mentioned studio comms director Thomas Puha. “We already reacted throughout launch week with patch 1.2, making some huge modifications to the sport. As Treatment does, we’ll do issues with smaller groups in our manner and attempt to remedy challenges creatively.”
