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.