Tuesday, 7 July 2026

Game News Round-Up

Daily curated games-industry news digest for 7 July 2026.

General3 stories
Business3 stories

<ICYMI> Microsoft is laying off 4,800 employees, and more than 30 percent of the job losses are in the company’s Xbox division

  • The layoffs, which are being described as an Xbox “reset” moment, will impact around 1,600 Xbox employees, according to an internal memo from Xbox CEO Asha Sharma
  • Microsoft is planning to eliminate a total of around 20 percent of Xbox jobs by the end of the financial year in July 2027
  • Double Fine and Compulsion Games are going independent, and Microsoft is also selling Ninja Theory and Undead Labs
  • Double Fine and Compulsion Games have been allowed to become independant along with "their IP, catalog and runway for this next games"
  • Microsoft is also weighing up selling or closing another Xbox studio; Arkane Studio. “In France, Arkane’s management is beginning required consultation with its Works Council to review potential strategic options,” says Sharma
  • Other Xbox studios will also be impacted by layoffs across the board with particular focus on Zenimax / Bethesda studios
The Verge