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Xbox Lays Off 268 More People, Hands Halo Series to Activision

Xbox announced it is cutting 268 roles across its first-party studios, XGS management, and central functions, with Halo Studios significantly affected. In an Xbox Wire post titled Continuing Our Reset, Xbox content chief Matt Booty said Activision will expand its remit to World's Edge and Rare and form a new internal team to develop the next Halo title, while a small team at Halo Studios continues supporting the community and in-market games. The post also details studio reshuffles including Bethesda absorbing Obsidian, King taking on Microsoft Casual Games, and Playground and Turn 10 merging, plus divestitures in which Compulsion and Double Fine spun off, Undead Labs signed with a new publisher, and Ninja Theory and Arkane face proposed closures.

Microsoft confirms 268 more Xbox layoffs, studio restructuring, and Obsidian moving under Bethesda

Microsoft confirmed a new Xbox restructuring round with 268 more layoffs affecting Halo Studios, other unnamed first-party studios, and Xbox Game Studios' management and central functions. Rare and World's Edge now fall under Activision, Playground and Turn 10 will combine on Forza and Fable, and Bethesda will oversee Obsidian, which continues work on Grounded and a new Fallout project with Bethesda Game Studios. The next Halo game will be developed by a new Activision team, while Ninja Theory faces proposed closure and Arkane consultation is expected to continue 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.

Escape From Tarkov Dev Bets on 'Risky' Games With New Publishing Arm

Battlestate Games Publishing, the new publishing arm of Escape from Tarkov developer Battlestate Games, aims to support "hardcore" and "risky" projects, COO Nikita Buyanov said. The label has already received more than 100 pitches, with "maybe five to ten games" already suitable. Buyanov said the effort is more of an experiment focused on risky ideas than potential profits.

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.

Hellblade developer Ninja Theory enters closure consultation in new wave of Xbox cuts

Xbox chief content officer Matt Booty announced on the Xbox Wire blog that Ninja Theory has entered employee consultation over a proposed closure after two separate agreements fell through. The studio was developing Senua, a new Hellblade entry announced at the June Xbox Games Showcase, and was put up for sale by Microsoft within a month of its reveal. Booty said he will spend the next week with Xbox studios and hold an all-Xbox town hall on October 6.

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

As part of the continuing reset of the business, XBOX will is eliminating 268 roles across Halo Studios, other first-party studios, and t...

Microsoft restructures Xbox: next mainline Halo moves to Activision as Halo Studios cuts 268 roles

Microsoft has handed the next mainline Halo game to Activision, which is forming a new purpose-built team separate from Call of Duty, while Halo Studios keeps only a small team supporting existing games and the community. Xbox Studios boss Matt Booty said 268 roles are being eliminated across Halo Studios, other first-party studios, and the XGS management and central functions layer. Activision president Rob Kostich said Halo, Rare, and World's Edge are joining Activision, as Ninja Theory closes and studios including Obsidian and Rare are consolidated under others.

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.

A buyer for Ninja Theory has fallen through and Xbox will now close Ninja Theory.

Rockstar restates modding rules ahead of GTA VI

Rockstar published updated modding guidelines on September 10, 2026, barring mods that mix maps, characters, storylines, or other IP from one Rockstar title into another, and prohibiting expansion or modification of official storylines and missions. Multiplayer modding is limited to Rockstar's official licensed Creator Platform, and monetization is restricted to approved storefronts, with real-money gambling, loot boxes, gacha, virtual currency sales, and crypto assets all banned. The rules also apply to existing releases such as GTA V and Red Dead Redemption II.

Blizzard layoffs reported as imminent, while new Xbox cuts appear to spare Blizzard for now

Bloomberg reporter Jason Schreier said on the 8-4 podcast that Blizzard layoffs are coming and imminent. The latest wave of Xbox cuts involves 268 job losses, with Ninja Theory closed, Halo Studios downsized and Halo development handed to Activision, Obsidian folded into Bethesda, Playground and Turn 10 merged, and Rare moved under Activision, though Blizzard does not appear to be included for now. Microsoft said earlier this year it intended to cut 3,200 roles from the Xbox division, cutting 1,600 immediately and earmarking 1,600 more.

Secret Mode Bets on Two Pillars: Pure Indie and Higher-Budget Games

UK publisher Secret Mode, now independent from Sumo Digital, is targeting two pillars: pure indie titles and higher-budget games like Star Wars: Galactic Racer, due out on October 6. Chief publishing officer James Schall says the company has seen phenomenal growth over the past 18 months. Secret Mode has also taken on publishing and ongoing development for Escape the Backrooms and Chained Together, and opened its own internal studio in Sheffield.

Bungie says it is not done with Destiny, pledging to bring back vaulted Destiny 2 content while saying Marathon needs to evolve

Bungie's new leadership said in a blog post that Destiny is foundational to the studio's future and that previously vaulted Destiny 2 campaigns, destinations and raids will be added back into the game, while acknowledging it cannot change the decision it made. They also said Marathon did not reach as many players as hoped and needs to evolve, so seasonal updates are being dropped in favour of a resurgence starting with a December PvE update. The studio said it has simplified priorities, reduced competing initiatives and moved decisions closer to development teams.

Bungie says it is not done with Destiny, will restore archived Destiny 2 content to rebuild player trust

Three months after Destiny 2's final update, Bungie announced plans to restore previously vaulted campaigns, raids and destinations to rebuild player trust. Studio head Poria Torkan and Marathon general manager Josh Deane said in a blog post that Destiny is foundational to Bungie's future, acknowledging that ending Destiny 2 development led to 292 layoffs and lost trust. Deane said the restoration is not as simple as restoring old files, since changes made since Beyond Light require updates to lighting, encounters, combatants and other underlying systems. Bungie also updated its Marathon roadmap, saying the game did not reach as many players as hoped but was never intended to replace Destiny.

Xbox reportedly set to lay off hundreds more staff and consolidate several game studios this week

The Information reports that Microsoft-owned Xbox is set to cut hundreds more jobs this week and consolidate some of its game studios, including Xbox Game Studios, Bethesda, Activision and Blizzard. Bloomberg reporter Jason Schreier said on the September 18 episode of the 8-4 Play podcast that Blizzard cuts are imminent. In July, Xbox laid off around 1,600 people and parted ways with five studios, with CEO Asha Sharma saying the company would cut 3,200 roles over its next financial year.

Reported second wave of Xbox cuts said to hit this week, with several studios facing consolidation

The Information reported, citing a source briefed on Microsoft's plans, that Xbox is preparing to lay off hundreds more people this week and consolidate several of its studios, without naming which ones. If accurate, it would be the second wave of Xbox layoffs this year after July's restructuring cut 1,600 jobs, when Double Fine Productions and Compulsion Games bought back their independence, Ninja Theory and Undead Labs were sold to unnamed buyers, and Arkane Lyon entered consultation. The cuts are part of Xbox CEO Asha Sharma's plan to reset the gaming division and return it to profitability; she previously said a further 1,600 jobs would be cut within a 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.

Bungie says it is 'not done with Destiny' as it lays out the studio's future

Bungie studio head Poria Torkan and Marathon general manager Josh Deane published a blog post saying Destiny is foundational to Bungie's future and that the studio will return to developing the series, starting by unvaulting years of archived Destiny 2 content. In an accompanying video they acknowledged lost trust and lost colleagues, and said Marathon did not reach as many players as hoped and needs to evolve. Bungie had previously said active development on Destiny 2 would end in June 2026 and laid off almost 300 employees.

Weeks before GTA 6, Rockstar updates mod guidelines restricting missions, maps, storylines and third-party IP

Rockstar Games updated its mod guidelines earlier this month, with the changes circulating online more recently, imposing tighter limits on the modding community. Mods may no longer expand or modify Rockstar's official storylines, plots, missions, characters or established continuity, or mix maps, assets and characters between its games, and multiplayer modding is limited to the official licensed Creator Platform. The rules also bar protected third-party intellectual property in GTA or Red Dead Redemption mods, running mods on platforms where the games were not officially released, and monetisation without Creator Platform permission.

Players spot censored LGBTQ content in Marvel's Wolverine in some regions

Players on X and Reddit have spotted that references to the marriage of two non-playable female characters, Mystique and Tyger, appear to be censored in Marvel's Wolverine in some regions. The wedding photo is blurred, voice lines referring to each other as wives are cut, and subtitles are replaced with asterisks. The poster describes this as happening in Middle East versions, though it is unclear whether it applies to every Middle Eastern country or other regions; Sony previously altered LGBTQ content in Marvel's Spider-Man 2 for Saudi Arabia and the United Arab Emirates.

In my latest Game File:

Hideo Kojima describes the scramble to find a new publisher for Physint after Sony pulled funding

In an interview with IGN, Hideo Kojima described the three-month search for new funding and publishing partners after Sony Interactive Entertainment stopped supporting Physint, which ended in a deal with Microsoft-owned Xbox. He said he feared for Kojima Productions' cashflow, moved some Physint developers to the OD team days later, and has not laid off staff. He also mentioned a bank loan taken out after Death Stranding released and pitched Physint as a new IP that could attract film, TV and streaming producers.

French publisher Dear Villagers confirms layoffs of around 15 staff

French publisher Dear Villagers has laid off around 15 employees, down from a workforce of roughly 20 before the cuts. The company said the downsizing follows a reorganization of operations by its owner Plug In Digital, and that it intends to keep publishing and producing games. A spokesperson said the workforce reduction plan affects approximately fifteen positions and that final figures are not yet available, while impacted employees said on LinkedIn that the vast majority of the team, including almost all of QA, was laid off.

Hideo Kojima recounts Physint's move from PlayStation to Xbox as his studio calls itself healthy and profitable

In an interview with IGN, Hideo Kojima said Sony told him in a June Zoom call that it would no longer fund development of Physint, after which he sought a new publisher and the project landed with Xbox. He said he is not in a dispute with Sony and that work on Physint never stopped, though only a small team stayed on key parts while others moved to the Xbox-published horror game OD. Kojima Productions also issued a statement saying the Bloomberg report's claims about its PlayStation relationship, Death Stranding franchise sales, and Physint production planning came from no official or on-the-record source, and that the studio is in a healthy, profitable state.

Activision cites data claiming cheating in games is an $8.5bn industry; 69% of online multiplayer studios call cheating a "significant or very significant problem"

Activision's Team Ricochet, which runs Call of Duty's anti-cheat efforts, cited data claiming cheating in games is an $8.5 billion industry. An Anybrain-commissioned survey of 250 US and UK developers found 69% of studios consider cheating a "significant or very significant problem," with over half reporting measurable drops in player retention or revenue loss. 76% of respondents have implemented anti-cheat measures, and 88% plan to increase anti-cheat investment over the next 12 months.

Northern Forge Studios and Runaway Play lead Green Games Jam Awards 2026

The 2026 Green Games Jam Awards, hosted by Playing for the Planet, were presented last week at BFI Southbank, with 11 awards handed out and both Northern Forge Studios and Runaway Play taking two each. Northern Forge won Best Small Studio and UNEP's Choice for Orna: The GPS RPG, while Runaway Play earned Best Storytelling for Flutter: Butterfly Sanctuary and Google's Choice for Splash – Fish Aquarium. CD Projekt Red received the Changemaker award and Ustwo Games' Maria Sayans won the Champion accolade, with Rovio Entertainment recognised for Best Fundraising.

Ahead of GTA 6, Rockstar bans unofficial story expansions and unauthorised ports in new modding rules

Rockstar published new modding guidelines this month that bar expanding or modifying official storylines, missions and characters, combining maps, characters or other IP from different Rockstar titles, and porting its games to platforms where they have not officially released. The guidelines were originally posted on September 10th and surfaced over the past weekend by users on ResetEra and other social sites, split into four sections covering copyright, community rules, unauthorised or abusive monetisation, and respecting Rockstar's games. Multiplayer modding is limited to Rockstar's licensed Creator Platform, monetisation must go through approved storefronts and cannot include real-money gambling, loot boxes or gacha, and Rockstar says it can revise the policy at any time and reserves the right to take down any mod.

Hideo Kojima says he "couldn't understand" why Sony put Physint on its cancellation list

Hideo Kojima told The Washington Post he could not understand why Sony put Physint on its list of cancelled projects, calling it the biggest-selling title he could possibly create. He said Kojima Productions received notice from PlayStation Studios in mid-June that funding would stop, then found Xbox as a new partner, with no layoffs and a small team continuing Physint while others moved to OD. Kojima said Physint's plot and game concept are complete, 3D models of its actors are underway, and the studio's relationship with Sony remains strong.

Chuapp Weekly Industry Roundup: TGS2026 Opens, Phantom Blade Zero Passes 3 Million Wishlists, Aniimo Hits 120,000 Concurrent Steam Players

Chuapp rounds up the week's industry news: TGS2026 opened on September 17 with a five-day run through September 21, featuring 759 exhibitors and 3,946 booths, while Chinese exhibitors fell to 93 from last year. Gamma Data's August report put China's domestic game revenue at 31.627 billion yuan, up 8.08% year on year, with Lord of the Mysteries topping 100 million yuan in first-month revenue. Phantom Blade Zero passed 3 million wishlists, Aniimo hit over 120,000 concurrent Steam players on its PC launch day, and Wardogs sold over 2 million copies within five days of its early access release.

"They've watched so many people lose their jobs, that has an impact" – Managing morale in the wake of layoffs

After years of mass layoffs across the games industry, HR experts say the morale of remaining staff is being overlooked, with some employees having lived through two, three or more rounds of cuts. Emma Smith, formerly of Creative Assembly and now at Hestia Talent Partners, argues studios must rebuild trust through honesty and consistency before motivation can return, while Compulsion Games' Michael Elliott Chan advises regular communication and one-to-one conversations. Both also say career development need not mean promotion, and can include deepening skills or mentoring.

GamesIndustry.biz HR Summit Confirms Sessions on AI Impact, Neurodivergent Teams and Personal Resilience

The GamesIndustry.biz HR Summit has confirmed its first round of facilitated discussion sessions, covering AI people strategy, AI in employment relations, managing neurodiversity in the workplace, and supervision for HR leaders. Sponsored by Amiqus, the event takes place next month at the Royal Institution in London, with tickets including lunch and access to the Best Places To Work Awards UK. Afternoon sessions on building effective people strategies, featuring leaders from key UK studios, will be announced next week.

Single-player games using Steam may need age verification under the current EU Kids Act draft, an MEP's senior policy adviser says

The European Commission proposed the EU Kids Act this week, which would set up tiered accounts for under-15s using social media, AI chatbots, and online games, enforced by mandatory age verification for all users. European Pirate Party senior policy adviser Paul Diegel said at a Stop Killing Games press conference that under the current draft, single-player games could be caught simply for connecting to Steam for updates or distribution, or even a one-time authentication. The draft text's only exception covers games accessible or purchasable exclusively through physical media without any online component, and the act remains a proposal.

Shanghai court orders AI voice service to pay MiHoYo ¥750,000 over Genshin Impact character voices

A Shanghai court ordered an unnamed generative AI developer to pay MiHoYo ¥750,000 (about $112,000) after finding it improperly reproduced and sold the voices of Genshin Impact characters. The Paper reported the case as Shanghai's first involving unfair competition over AI recreations of another company's voiceover work. MiHoYo said the defendant replicated the voices of 63 Genshin Impact characters and used the game's images and story animations to advertise and sell its voice packs; the defendant was ordered on June 30 to stop distributing the assets and pay damages, and later withdrew its appeal.

Denuvo sues anonymous cracker voices38 over bypassing DRM on 26 games

Denuvo filed a DMCA complaint on 14th September in the US District Court for the Northern District of California against a person or group called voices38, accusing them of circumventing anti-tamper technology on 26 games including Black Myth: Wukong, Resident Evil Requiem and Doom: The Dark Ages. Denuvo does not hold the copyrights to those games and instead invokes the provision against bypassing digital locks, seeking damages and an injunction against removing anti-tamper software from any past, present or future game. Denuvo knows the cracker only through a Discord ID, a Reddit account and a few Steam profiles, naming the defendant as an unknown individual or entity alongside 10 other unnamed defendants; Torrent Freak suggests the filing is partly meant to let Denuvo subpoena Valve, Reddit and Discord for more information.

King workers call strike after collective agreement negotiations stall

Union workers at Candy Crush maker King are preparing to strike after negotiations over a collective agreement with the Microsoft subsidiary broke down. Employees represented by Unionen, Sweden's largest trade union, will down tools on September 25, 2026, if no solution is reached; the union submitted its strike notice on September 15 and said its members represent a large proportion of the company's workforce. On September 17, Swedish unions Naturvetarna, DIK and Akademikerförbundet SSR announced sympathy strike action, while King COO Ulrika Höjgård said the studio offers fair and competitive terms and has decided not to enter into a collective bargaining agreement.

King workers to strike in Sweden after rejection of collective bargaining agreement

Swedish unions Unionen and Sveriges Ingenjörer have issued a strike notice against King after executives rejected a proposed collective bargaining agreement last month. Unionen filed the notice on September 15 and mediation is ongoing; if no agreement is reached, King employees will strike on September 25. Naturvetarna, DIK and Akademikerförbundet SSR have also announced plans to strike in solidarity.

Dredge maker Black Salt Games establishes indie studio Team Trifold under new Saltworks Entertainment label

Dredge creator Black Salt Games has launched a new studio, Team Trifold, along with a white-label publisher called Saltworks Entertainment that will serve three New Zealand indie studios. Black Salt Games is funding the development and publishing of Team Trifold's debut game Nothing Lost, which aims to turn the roguelike loop on its head by using death as a core progression mechanic.

GDC Festival of Gaming adds four members to advisory board

GDC Festival of Gaming has appointed Amir Satvat, Alexa Ray Corriea, Lucien Parsons, and Perrin Kaplan to its advisory board, which comprises more than 50 games industry professionals who help shape the event's program. Last month, GDC VP of content strategy Mark DeLoura revealed changes to the 2027 conference, including a new Business Hall at Moscone West, three new passes, and dedicated options for indies and start-ups.