Xbox’s ‘reset’: all the news about Microsoft’s looming layoffs and studio closures – The Verge

007 First Light’s developer lays off staff but claims its next franchise will continue

2026-07-01T11:08:08-04:00

IO Interactive, the studio behind the Hitman series and 007 First Light, announced that it is laying off staff after a relationship with an "external partner" on its next big franchise, Project Fantasy, "has come to an end." IO has described Project Fantasy as an "online fantasy RPG", and Kotaku and Bloomberg report that Microsoft, which is planning significant cuts as part of a broader "reset" of the Xbox business, was going to be the game's publisher.

It's unclear how many people will be affected by IO's "staffing decisions." The company says "we are fully committed to supporting those affected through this challenging transition." IO al …

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Xbox weighs canceling Blade game and shuttering Arkane

2026-06-30T12:38:18-04:00

Microsoft is set to announce a wave of layoffs for its Xbox studios and employees next week. Sources familiar with Microsoft's plans tell The Verge that the layoffs will lead to studio closures or spinoffs, potential mergers of studios, and canceled games.

I understand Microsoft is currently weighing closing at least five studios, including the developers behind Marvel's Blade. Sources tell me Microsoft wants to cancel Blade as part of a wave of cost cuts and job losses that are planned for the company's Xbox gaming division.

Developed by France-based Arkane Studios, best-known for the Dishonored series, Blade was originally supposed to de …

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Xbox prices spike another $100 or more

2026-06-25T14:29:25-04:00

Microsoft is increasing the prices of Xbox consoles again. Starting August 1st, 512GB models will be $100 more expensive, while 1TB models will be $150 more expensive. This means that the Xbox Series S will start at $499.99, the Xbox Series X without a disc drive will start at $749.99, and the Series X with a disc drive will start at $799.99. Microsoft also says it will be "sunsetting" its 2TB Xbox Series X.

Microsoft last raised prices in October by $20 to $70 and says it had hoped to avoid further hikes. "Unfortunately, console storage and memory prices have increased by more than 2.5x and we expect another doubling by the fall of 2027," …

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Xbox is closing down Hellblade creator Ninja Theory

2026-06-15T17:13:35-04:00

Xbox is closing down Ninja Theory, the studio behind the Hellblade series, a source tells The Verge. Staffers were told on a call on Monday about the closure, but they are hoping the studio will find a buyer. The closure comes as "several" Xbox studios at Microsoft, including Compulsion Games and Double Fine, are in "active negotiations" about spinning off, Bloomberg reports.

The closure and negotiations follow Xbox CEO Asha Sharma and chief content officer Matt Booty warning last week of a "reset" at Xbox, laying out several challenges facing Xbox's business - including that it had "over extended" with its studio system and the hardware c …

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Xbox turmoil continues with a studio closure and executive departures

2026-06-15T13:08:35-04:00

Last week, Xbox boss Asha Sharma sent a memo warning of an Xbox "reset" ahead of expected layoffs, and today, Kotaku reported that Xbox plans to shut down Compulsion Games, the studio behind South of Midnight.

Since taking over in February, Sharma has made some big decisions, including cutting the price of Xbox Game Pass and making Gears of War: E-Day and Clockwork Revolution Xbox console exclusives. But in their "reset" memo, Sharma and chief content officer Matt Booty discussed many challenges facing the Xbox business, including that it has "over extended" with its studio system:

We are the fortunate stewards of industry-defining franch …

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Microsoft hasn’t ruled out spinning off Xbox

2026-06-13T12:29:47-04:00

Asha Sharma. | Image: The Verge, Microsoft

Microsoft is preparing to lay off a significant chunk of its Xbox division and is reevaluating the plans for its next-generation Project Helix console. It's apparently also considering dramatically restructuring its relationship with Xbox, and hasn't ruled out spinning it off into a separate company.

A new report from The Information suggests that Microsoft has considered some dramatic measures to make its Xbox unit more sustainable. That includes turning it into a wholly owned subsidiary, a joint venture, or even spinning it off entirely, with the possibility of selling the business. The report doesn't suggest anything is imminent, but it …

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Xbox warns of a ‘reset’ as it prepares for layoffs

2026-06-10T17:44:30-04:00

Microsoft's Xbox division will be hit with significant layoffs next month, according to people familiar with Microsoft's plans.

The company has been preparing for the layoffs internally for weeks, with Xbox CEO Asha Sharma hinting about "making hard choices" last month. Sources suggest the cuts could even involve a studio closure, or changes to the Xbox studio lineup. In a recent Giant Bomb episode, rumors of 1,000 layoffs for Microsoft's Xbox division were mentioned. Bloomberg also reported today that the cuts would be "major," and involve budget cuts for marketing and other areas of Microsoft's Xbox business.

Moments before Bloomberg's r …

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Xbox exploring ‘radically different’ console business models

2026-06-10T08:06:59-04:00

The RAMageddon crisis has got Microsoft rethinking its Xbox console hardware business. Xbox CEO Asha Sharma and Xbox strategy chief Matthew Ball have both revealed this week that Microsoft is reevaluating plans for its next-generation Project Helix console and exploring "radically different" console business models in the meantime.

"We are working very hard to rethink everything that we can about Helix, which is a console we are committed to shipping, and we are very cognizant of the ways in which we need to change as a company to make sure it is affordable, to make sure that it's flexible," said Ball in an interview with The Game Business …

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Xbox exclusives are back and more complicated than ever

2026-06-08T10:25:22-04:00

Two years ago, when Microsoft first revealed that it was bringing four Xbox-exclusive games to the PS5 and Nintendo Switch, it made the announcement far more complicated than necessary. That's not likely to improve anytime soon. In fact, things now seem more confusing than ever as the company tries to appease both fans and the bottom line.

When making the experimental move away from exclusives in 2024, Microsoft initially refused to name the games - Hi-Fi Rush, Pentiment, Sea of Thieves, and Grounded - going cross platform, but was happy to shoot down rumors of Starfield and Indiana Jones coming to the PS5. Some Xbox fans thought the annou …

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Xbox hires game industry analyst Matthew Ball to lead strategy

2026-05-20T12:30:54-04:00

Microsoft has recruited game industry analyst Matthew Ball as Xbox chief strategy officer. Ball publishes an annual state of video gaming report, which is a popular read across the game industry, and he's "widely respected across gaming, media, and technology," according to Xbox CEO Asha Sharma.

Sharma announced Ball is joining Microsoft in a memo to Xbox employees this morning, seen by The Verge. She described Ball as a "longtime gamer," who has held strategy and leadership roles at Illumination, Amazon Studios, Otter Media, and Accenture Strategy. "Matthew has been partnering with us on strategy since day 10 and will officially start this …

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