#Studio

Ubisoft shuts down 26-year-old RedLynx studio and cuts Black Flag remake devs

Ubisoft announced a new round of layoffs and closures, shutting down the Finnish studio RedLynx, best known for the Trials motorcycle racing series. The publisher is also conducting significant layoffs at Ubisoft Singapore, which most recently developed Assassin's Creed: Black Flag Resynced.

Microsoft forms new XBOX division XP, led by President Kayleen Walters

Microsoft announced XP, a new XBOX division led by newly appointed President Kayleen Walters, covering film and television, consumer products, strategic partnerships and live experiences. The division consolidates capabilities previously spread across XBOX teams and formalizes four investment areas: XBOX PICTURES, XBOX PRODUCTS, XBOX PLACES and XBOX PARTNERSHIPS. Walters spent 13 years at Lucasfilm, and at Mojang Minecraft grew from 350 million units sold to over 425 million.

Paramount and Warner Bros. combine game divisions after $110bn Skydance merger

Paramount and Warner Bros. have combined their video game divisions after completing their $110bn merger, with the new company to be known as Skydance. The newly formed Paramount Games Studio will be merged with Warner Bros. Games' internal developers, including Avalanche Software, NetherRealm Studios, Rocksteady Studios, TT Games, and the WB Games teams in Montreal and Boston. Paramount Games Studio boss Tony Driscoll will lead the merged games operation, according to Variety.

Paramount completes $111bn Warner Bros. Discovery merger, companies now operate as Skydance

Paramount has completed its $111 billion acquisition of Warner Bros. Discovery, and both companies now operate under the name Skydance. Skydance's announcement does not reference video games, though co-CEO Ynon Kreiz told The Hollywood Reporter there will be opportunities to develop new businesses, products, games and experiences. CEO David Ellison told staff the merger will require difficult decisions with changes and impacts, and Skydance is targeting more than $6 billion in synergy savings. Skydance now owns Warner IP including Avalanche Software and its Portkey Games label, NetherRealm, Rocksteady, TT Games, and WB Games Montreal, New York and San Francisco.

Hellblade studio Ninja Theory has started laying off staff after Xbox said it faces closure

After Xbox announced that Ninja Theory faces closure, multiple developers at the studio said on LinkedIn that they have been laid off or face redundancy. Xbox carried out a second wave of cuts last month, adding 268 layoffs to the 1,600 in the first wave, and COO Matt Booty said two separate agreements for Ninja Theory fell through. The fate of Senua, the third Hellblade game announced at the June 2026 Xbox Games Showcase for a 2027 release, has not been officially confirmed.

《心之眼》工作室濒临破产，已解雇全部员工

Microsoft CEO says Xbox is simply 'streamlining' after cutting over 5,750 jobs in three years

Microsoft CEO Satya Nadella said on the Sources Podcast that the layoffs at Xbox are simply a natural streamlining process and that he feels fantastic about the current IP. Since acquiring Activision Blizzard for $68.7 billion in October 2023, Xbox has carried out five rounds of mass layoffs totaling at least 5,750 workers, with the latest round confirmed in July 2026 set to cut 3,200 people from Xbox Game Studios by the end of the current fiscal year, including the divestment of Compulsion Games, Double Fine and Undead Labs. Nadella said new Xbox boss Asha Sharma told him Xbox will achieve growth and produce some great games in the next fiscal year.

Build a Rocket Boy has entered administration

Build a Rocket Boy entered administration on Wednesday and formally appointed administrators the same day, which is effectively similar to bankruptcy proceedings for non-UK readers. The existing management has been dismissed while a new team comes in to see whether the company can be sold as a whole, liquidated, or found to have nothing left to salvage. Previous reports had said the studio was shutting down.

GTA veteran's MindsEye studio Build a Rocket Boy enters administration

Build a Rocket Boy has filed for administration with the UK's Companies House and hired Opus Advisory Group as administrator. The move follows reports last week of further layoffs at the studio behind last June's poorly received MindsEye. For the 12 months ending 30th September, the company reported a £47.5m operating loss and a £36.2m net loss, owing creditors £61.8m.

MindsEye developer Build A Rocket Boy has appointed administrators

MindsEye developer Build A Rocket Boy has appointed administrators following its latest wave of layoffs, with Opus Advisory Group confirmed as the administrator. A Companies House filing indicates the studio is insolvent, though the filing itself was not available at the time of writing. For the year ending September 30, 2025, the company posted a £47.5 million operating loss and a £36.2 million net loss, and owed creditors a total of £61.8 million.

Xbox restructuring sparks confusion and frustration as communities react to Ninja Theory closure

Xbox carried out a second wave of layoffs this week and shifted studio management away from Xbox directly to Bethesda or Activision, with Obsidian moving to Bethesda and Rare, World's Edge and Halo moving to Activision. Ninja Theory faces closure, Halo Studios was nearly dismantled by layoffs and World's Edge was halved. Communities around Hellblade, Outer Worlds, Forza, Age of Empires and Sea of Thieves reacted with sadness and concern, while Ninja Theory, Obsidian and Rare have not commented publicly.

Xbox Layoffs and Restructuring: First-Party Studios Cut From 14 to 4, Halo Moves to Activision

In September 2026, Microsoft chief content officer Matt Booty announced in an internal letter the cutting of 268 positions, moving Rare and World's Edge to Activision, placing Obsidian under Bethesda, merging Turn 10 into Playground, and handing the next Halo to Activision. Over five years Microsoft's Xbox first-party studios shrank from a peak of 14 to 4, leaving The Coalition, inXile, Playground and XGS Publishing, while Ninja Theory faces consultation over a proposed closure after two deals fell through. A top community comment said it feels more like Activision acquired Xbox than the reverse.

Former Halo leaders respond to effective closure of Halo Studios as Xbox cuts 268 jobs

Microsoft's Xbox division cut 268 jobs across Halo Studios, other unnamed first-party studios and Xbox Game Studios management, leaving Halo Studios as a small support team while major Halo development moves to a purpose-built team at Activision. Former Halo heads Bonnie Ross and Kiki Wolfkill said on LinkedIn that Halo Studios is essentially being shut down, and one former employee said he was promoted and laid off in the same week. The changes also include the apparent closure of Ninja Theory, Obsidian moving under Bethesda, Playground and Turn 10 merging, Undead Labs going independent, and Rare, World's Edge and Halo moving under Activision.

Undead Labs lays off staff after splitting from Xbox, will find a new publisher for State of Decay 3

Undead Labs has become an independent, employee-owned studio after divesting from Xbox, and announced it is laying off a significant number of employees, some of whom worked on State of Decay 3. The studio will now work with a new publisher to release State of Decay 3, which is still slated for a day one launch on Xbox Game Pass. Microsoft said the studio regained independence on terms similar to Double Fine and Compulsion, which split from Xbox earlier this year with their IP, back catalogs and runway funding.

Xbox lays off Gears of War: E-Day story director two weeks before launch

Gears of War: E-Day story director Juan Vaca announced on LinkedIn that he was part of Microsoft's latest round of layoffs, roughly two weeks before the game's 6th October release. He joined developer The Coalition in 2022 and had posted five days earlier celebrating the game going gold. Kotaku, citing an anonymous source, reported fewer than a handful of developers were cut at The Coalition for reasons apparently unrelated to Xbox restructuring, while 268 developers were laid off across Xbox overall.

Undead Labs confirms it is now an employee-owned studio, with a significant number of layoffs

Undead Labs announced it has completed its separation from Xbox and is now operating as an employee-owned game development studio, with a significant number of employees made redundant. The studio said development of State of Decay 3 remains actively underway, with a 2027 launch planned for Xbox, Game Pass, PC and PlayStation and a closed beta before the end of the year. The move came as Microsoft eliminated 268 positions across its first-party studios and shifted Rare and the Halo franchise to Activision.

Xbox Game Studios started 2026 with 12 studios plus publishing

Microsoft proposes closing Hellblade developer Ninja Theory after failing to reach a deal with buyers

Microsoft is proposing to close Hellblade developer Ninja Theory after failing to reach an agreement with buyers, and will begin consultation with employees on the proposed closure. Xbox chief creative officer Matt Booty said in a memo that two separate agreements for Ninja Theory fell through while the company continues to explore other paths forward. The move comes in a round of Microsoft cuts that saw Xbox lay off 268 people, with Undead Labs successfully sold to undisclosed buyers.

Microsoft hands Halo to Activision, demotes Halo Studios to a support team amid 268 layoffs

Microsoft has placed the Halo series under Activision, with a new purpose-built team separate from Call of Duty development making the next Halo game, while Halo Studios becomes a small team supporting existing Halo games. The company is laying off 268 people across Halo Studios, other first-party studios and the XGS management and central functions layer, and it is not yet clear who is affected. The move follows July's announcement of 1,600 job cuts, part of plans to reduce the workforce by 3,200 over the financial year.

Xbox lays off 268 people as Activision takes over Halo and Rare, Obsidian joins Bethesda

Xbox is cutting 268 roles across Halo Studios, other first-party studios and the XGS management and central functions layer. Activision takes custody of the Halo series along with Age of Empires developer World's Edge and Sea of Thieves maker Rare, while Obsidian moves into Bethesda and Playground Games merges with Turn 10 Studios. Ninja Theory is consulting on a likely closure and Arkane's future is expected to be discussed through the end of the year.