#Publishing

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.

Report: Epic Games pivots to AI-first development as Disney shooter is delayed indefinitely

Bloomberg reports that Epic Games is moving to an AI-first development model for its collaboration with Disney, with AI models writing all code and guiding all artwork while human developers manage the generated assets. The $1.5 billion partnership announced in early 2024 had planned a Marvel- and Star Wars-themed shooter for March 2027, but the project is now delayed indefinitely. Epic said it is embracing AI-accelerated development, and CEO Tim Sweeney said the aim is to let teams build more and better content for everyone using Unreal.

Fan timeline traces PHYSINT's development, from Sony cancellation to Xbox publishing

Reddit user /u/Sascha2022 compiled a timeline of Kojima Productions' PHYSINT from 2019 to 2026, along with the studio's growth. According to the post, Sony notified the studio in mid-June 2026 that it was cancelling the project, and on September 10 the studio confirmed Xbox as its new partner and publisher. On September 17, Hideo Kojima revealed Bill Skarsgard as the lead at the Xbox Tokyo Game Show stream, saying the project remains at a conceptual and experimental stage with a small team.

Microsoft forms new Xbox division XP, names new Mojang and Minecraft CEO

In an internal note to Xbox employees, Microsoft said Kayleen Walters is moving from Mojang to become President of XP, a new Xbox division, while Maria Angelidou-Smith joins Xbox as CEO of Mojang and Minecraft on October 19. Both report to Asha. XP, a play on Experience Points, covers four areas: XBOX PICTURES, XBOX PRODUCTS, XBOX PARTNERSHIPS and XBOX PLACES. Maria previously led Facebook Groups and other products at Meta and served as Chief Product Officer at Reddit.

Paramount Games Studio and Warner Bros. Games to merge into one unit under Skydance, overseen by Tony Driscoll

Paramount Games Studio and Warner Bros. Games will merge into a single unit under Skydance, overseen by Tony Driscoll. The merger follows the completion of a $111bn acquisition.

Paramount Skydance completes $110 billion acquisition of Warner Bros. Discovery

Paramount Skydance has formally completed its acquisition of Warner Bros. Discovery, with the combined company renamed Skydance and its stock moving from Nasdaq to the New York Stock Exchange under the ticker SKYD. The all-cash deal carries an equity value of $81 billion and an enterprise value of $110 billion, with shareholders receiving $31.01666668 per share in cash. Studios including Rocksteady, NetherRealm, TT Games, Avalanche Software and WB Games Montreal now fall under Skydance, and it has not been announced whether they will be folded into Paramount's own games division.

《心之眼》工作室濒临破产，已解雇全部员工

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 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.

Added a statement from Activision's president regarding Halo, says they've "begun assembling" a team for the next Halo.

Xbox continues reset with Halo Studios layoffs and Undead Labs divestment

Xbox has laid off another 268 employees as part of the restructuring it began in July 2026, affecting Halo Studios, other first-party teams, and the Xbox Game Studios management and central functions layer; Matt Booty said the division is roughly three-quarters of the way through the previously announced restructuring. Undead Labs has transitioned out of Xbox on terms similar to Double Fine and will release State of Decay 3 day one on Game Pass with a new publisher, while Ninja Theory faces a proposed closure and Arkane remains in consultation. Xbox is also merging internal studios, moving Rare and World's Edge under Activision, placing Obsidian under Bethesda, adding Microsoft Casual Games to King, and combining Playground Games and Turn 10, with Activision developing the next Halo led by a new purpose-built team.

NEW: Nearly 300 more jobs cut at Microsoft's gaming team (part of 3,200 announced in July). Majority at Halo Studios, reduced to support

Xbox transfers Rare and Halo to Activision, proposes closing Ninja Theory and cuts another 268 roles

Xbox is transferring Rare and ownership of the Halo franchise to Activision, proposing the closure of Ninja Theory with a staff consultation, and cutting 268 roles in the restructure. Activision will also take on World's Edge and build a new team for the next Halo, Bethesda will absorb Obsidian, Playground and Turn 10 will merge into one studio for Forza and Fable, and Undead Labs has left the business and will release State of Decay 3 day one on Game Pass with a new publisher. Xbox said it is roughly three-quarters of the way through a planned 3,200 job cuts this year.

Xbox reportedly set to announce second round of layoffs this week

Xbox is reportedly preparing a second round of layoffs this week, with a source saying the company will consolidate several of its game studios, according to The Information. VGC reports this could involve mergers or internal changes at Xbox Game Studios, Bethesda, Activision and Blizzard. Xbox had announced plans to cut 3,200 employees in July, with the first round resulting in 1,600 redundancies and the divestment of five internal studios.

Xbox to publish Kojima Productions' Physint after PlayStation cancelled the project

Kojima Productions unexpectedly received notice from PlayStation Studios in mid-June that it would cancel the Physint project, and the studio has now partnered with Xbox to publish the game. Hideo Kojima said the team was determined to keep the project alive and found in Xbox a partner sharing a common vision, with the two also set to collaborate on storytelling across games, film, and television. PlayStation called it a difficult decision and said its relationship with Kojima Productions remains strong after three decades of cooperation.