Gaming News — 2026-07-06#

Top Story#

Microsoft is initiating the most significant restructure in Xbox history, laying off 3,200 employees and spinning off major studios like Double Fine and Compulsion Games. This desperate “reset” from CEO Asha Sharma reflects an incredibly unhealthy gaming business that’s lost its way and is abandoning its diverse studio portfolio to double down on massive, established franchises.

News & Reviews#

The Xbox Restructuring Bloodbath · IGN Microsoft is shedding one-fifth of its gaming workforce and drastically changing the fate of multiple first-party studios to stop its financial bleeding. While Double Fine and Compulsion Games will regain their independence, Undead Labs and Ninja Theory are being sold to undisclosed buyers to finish State of Decay 3 and Senua. Sadly, Arkane Lyon’s future is in severe jeopardy, leaving Marvel’s Blade in limbo, and Bethesda is narrowing its focus almost entirely to mega-franchises like Fallout and The Elder Scrolls, effectively putting Starfield on ice.

Over 115,000 Gamers Petition PlayStation to Keep Discs · IGN Sony’s heavily criticized decision to kill off physical disc production for PlayStation consoles by 2028 has sparked a massive consumer backlash. An independent retailer’s petition has already garnered over 115,000 signatures, arguing that an all-digital future ruins game preservation and destroys thousands of retail jobs. Despite the uproar, industry analysts believe Sony is unlikely to reverse course since digital storefronts provide a drastically higher profit margin for the company.

Nintendo Switch 2 Gets Replaceable Batteries in Europe, Switch 1 Retires · IGN Due to impending European Union legislation, Nintendo is updating the Switch 2 and its controllers to feature user-replaceable batteries starting this fall. Because these strict new regulations take effect in mid-February 2027, Nintendo has opted to completely withdraw the original Switch 1 family of consoles from the European market rather than update them. This marks the definitive end of an era for the original Switch in Europe, though it should still be widely available through the end of 2026.

Palworld 1.0 Finally Gets a Launch Time · IGN Pocketpair’s monster-catching phenomenon is graduating from Early Access with its massive 1.0 update launching around July 10 at 12:30 PM Japan time, which translates to July 9 in the US. The developers teased a staggering 27 pages of patch notes, heavily overhauling the game’s mechanics and adding fresh content. While a data wipe isn’t strictly mandatory, the developers highly recommend that returning tamers start a fresh character to get the best possible experience.

Meccha Chameleon Achieves 15 Million Sales · IGN The indie paint-and-seek multiplayer sensation Meccha Chameleon just crossed a staggering 15 million copies sold on Steam less than a month after its release. Built by a two-person team in just two months with zero marketing, the game has been a massive hit with content creators. The developers are now teasing an upcoming collaboration with a “famous Japanese star,” leaving fans enthusiastically speculating on who the mystery guest will be.

Elder Scrolls IV: Oblivion Remastered Gets a True Physical Switch 2 Release · IGN In a refreshing win for physical media advocates, The Elder Scrolls IV: Oblivion Remastered is dropping on the Switch 2 with the entire base game on an actual physical cartridge rather than a download code. Preorders for the $59.99 Physical Deluxe Edition are currently live, giving players a modernized version of the 2006 classic packed with the Shivering Isles and Knights of the Nine expansions. Grab it quickly, as major retailers like Best Buy and Amazon are already selling out of their allocations.

Free Games & Deals#

While there are no Epic Games Store freebies detailed today, there are plenty of stellar discounts to claim right now. Over on Steam, you can snag an ARC Raiders code for just $24.99 at Newegg using code SSF69868, giving you cheap access to IGN’s “Best Shooter Game” of 2025. For PS5 physical collectors, Darksiders: Warmastered Edition is already $10 off at Amazon, and the terrifying co-op adventure Reanimal is also $10 off. Finally, Switch 2 owners should jump on the Onn 512GB Micro SDXC Express Card at Walmart for $84.77, which is an absolute steal considering the console’s expensive new proprietary memory formats.

Also Worth Knowing#

• Pokémon Go Hosting 10th Anniversary Broadcast · IGN: Niantic is celebrating a decade of Pokémon Go with a special, top-secret livestream event featuring major content creators on July 9.
• Steam Developer Calls for Refund Policy Changes · IGN: The creator of Paddle Paddle Paddle is criticizing Steam’s refund policy after facing an unfair 21% refund rate from players who beat the short game and praised it.
• HiAnime Piracy Ring Busted in Vietnam · IGN: Authorities arrested seven individuals connected to the massive anime piracy site HiAnime, which illegally generated around $12.8 million in ad revenue.
• Bumbling Pokémon Card Thieves Jailed · IGN: Two UK thieves were arrested and jailed after their getaway van broke down while attempting to flee with £71,000 worth of stolen Pokémon cards.