#Microsoft

Minecraft Dungeons II Launches September 29 With Jumping and the New Sift Dimension

Minecraft Dungeons II launches September 29 on Xbox Series X|S, PC, Cloud and other platforms. Mojang design director Laura De Llorens said on the Official XBOX Podcast that the sequel adds jumping, an interconnected world you can walk across, the new Sift dimension, armor split into four pieces, talismans and a reworked enchantment system. Multiplayer adapts when players join or leave and now mixes couch co-op with online play.

Minecraft Dungeons II Launches September 29, New Dimension The Sift Coming to Minecraft in 2027

Mojang Studios announced at Minecraft LIVE that Minecraft Dungeons II launches September 29 on Xbox Series X|S, Xbox on PC, Steam, PlayStation 5, Nintendo Switch and Nintendo Switch 2, and will be included with Game Pass. The game introduces The Sift, Minecraft's first new dimension in over 14 years, with new biomes including Meadows and Carapace plus new mobs and block rules. Mojang also confirmed The Sift will come to Minecraft in 2027.

Minecraft LIVE Fall 2026 Recap

The Minecraft LIVE Fall 2026 recap has been published on Xbox Wire. It covers the official Minecraft livestream event.

Xbox's Physint Deal Potentially Significantly Less Than $400M, Jason Schreier Says

Jason Schreier said someone at Xbox with firsthand knowledge of the deal told him the company signed Physint for significantly less than the roughly $400M figure reported by The Game Business. He cautioned that he is hesitant to give exact numbers without documentation or corroboration from multiple firsthand sources, noting the many different figures involved, including what PlayStation originally signed Physint for and what Xbox agreed to.

[The Game Business] Physint budget around $400 million

The Game Business reports that Hideo Kojima's Physint has a budget reportedly around $400 million. The same report says the company has signed the big game and is now investing in a new Halo team as well.

Ex-Elder Scrolls loremaster says Bethesda is "very protective" of the series, so it never got a Fallout: New Vegas-style spin-off

Former Elder Scrolls loremaster and Skyrim lead developer Kurt Kuhlmann said on the FRVR podcast that Bethesda never let an outside team make a mainline-style Elder Scrolls spin-off because it is "very protective" of the series. He said director Todd Howard did not want to recreate the debate over whether Bethesda or Obsidian made the better Fallout game after Fallout: New Vegas. Kuhlmann, who left the studio in 2023, added that The Elder Scrolls Online's ongoing new content has become many players' Elder Scrolls experience.

Five Ways to Build a Better Used-Car Business in Used Cars Simulator

Used Cars Simulator is out now on Xbox Series X|S for $19.99, currently $15.99. The game's five tips cover inspecting before repairing, keeping money moving, leaving the shed to explore, treating cars as physics toys, and deciding how much chaos your business can handle. Published by PlayWay S.A., it has players inspect, negotiate, repair, customize, and resell cars.

Microsoft's failure to find a buyer for Ninja Theory voids the one upside to Senua's SGF reveal

Rock Paper Shotgun's James Archer argues that Microsoft's failure to find a buyer for Ninja Theory leaves the studio facing closure and strips Senua's Summer Game Fest reveal of its only possible upside. The piece notes that the studio was put up for sale about four weeks after the reveal, and roughly eleven weeks later Microsoft executive Matt Booty devoted two sentences to two failed deals and a proposed closure. The author says the show-then-sell approach looks callous whether or not staff were told in advance, and that the reveal ultimately produced nothing.

The Xbox reset doesn't have an end date

Rob Fahey argues that Xbox's so-called hundred-day reset has stretched past its original window, with another 268 jobs cut this week on top of roughly 1,600 already gone, no buyer for Ninja Theory, and Arkane's fate still unclear. The piece also notes Obsidian moving under Bethesda and Halo coming under Activision, and says Microsoft has yet to outline a clear vision for what Xbox becomes after the reset.

King signs collective bargaining agreement with Swedish unions, averting strike

King signed a collective bargaining agreement with Swedish unions Engineers of Sweden and Unionen, cancelling a strike that was scheduled to begin on September 25, 2026. The two sides had been negotiating since May 2025 before talks over a collective agreement reached an impasse. Engineers of Sweden, which represents around 100 of King's roughly 500 employees in Malmo and Stockholm, said the deal gives workers more opportunities to influence their work situation and the right to organize and receive timely information about workplace changes such as reorganisations.

Two snapshots of some of the 277 jobs Microsoft cut in Washington State this week, as disclosed in a state filing

Rumor: Halo Studios reportedly worked on H2/3 remakes, Halo 7 and a spinoff campaign at once

According to a RebsGaming report, Pierre had the entire Halo Studios start early development on H2/3 remakes, Halo 7 and a spinoff campaign based on a Halo novel at the same time. The First Strike spinoff was said to be a small project with about 5 campaign missions and a Firefight mode planned for release next year, a claim confirmed by 3 sources. The report also says Halo Studios presented a Halo 7 concept to Matt Booty and Xbox executives the week before layoffs, featuring campaign, PvP, PvE and Forge on day one, while Halo 7 was years away from release. 30 employees left Halo Studios, including Pierre and members of his inner circle, and Pierre reportedly wants to use AI for smaller Halo projects and outsource the remakes.

Leak: Halo 2 and Halo 3 Remakes Shelved

A leak claims all internal projects at Halo Studios have been shelved effective immediately, including Halo 2 and Halo 3 remakes, Halo 7, and any huge modes planned for it. It also claims Activision will take over with a new studio that decides what stays and what goes with a new Halo title. The claim comes from Reddit's Gaming Leaks and Rumours board and has not been officially confirmed.

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.

Luma Island is coming to PS5

Feel Free Games announced that Luma Island is coming to PS5, and it can be wishlisted on PlayStation Store starting today. The game launched on PC in November 2024 and has drawn more than 800,000 players, with online co-op for up to 4 players and cross-platform play across PS5, Xbox Series X|S and PC. It offers three difficulty modes — Cozy, Adventure and Hero — with no stamina bars or inventory limits.

Tim Schafer on Double Fine's Xbox split: "I assume someone is being greedy somewhere"

Double Fine founder Tim Schafer told the BBC that the studio split with Xbox because Microsoft is moving toward "fewer, larger IPs," while Double Fine wanted to keep making many small ones. He said he remains pro Game Pass and has no regrets about the Xbox partnership, but called the industry's four-year downturn baffling and said "I assume someone is being greedy somewhere."

Quake Champions drops free-to-play and removes its Microsoft Store version eight years after launch

id Software's free-to-play shooter Quake Champions is becoming a paid product eight years after its original release, priced at £8.99/$9.99 with content from 30 seasons and all Champions unlocked. The Microsoft Store version is being removed, leaving it only on Steam, and id Software confirmed no additional content updates are planned. Patch 1.31 removes battle passes, the in-game store, paid currencies, loot boxes, login rewards and all microtransactions, with refunds for recent Platinum purchases and a free Steam copy for previous players who link accounts by 7th October.

Bethesda says Obsidian will keep its distinct creative identity despite no longer operating independently

Jill Braff, president of Bethesda and Microsoft's casual games division, said in a staff memo that Obsidian will no longer operate independently of fellow Xbox-owned studio Bethesda but will retain its distinct creative identity and strengths. She described the change as primarily a shift in reporting structure, with Obsidian CEO Feargus Urquhart and his leadership team continuing to run the studio and reporting to her. Bethesda Game Studios will continue to lead the Fallout franchise, and the teams will build on early work already underway on a new Fallout project.

Xbox's Platinum Trophy equivalent seems to leak, with a 15-second unlock sound

The Xbox PC App has reportedly been updated with a new Xbox Mythic Achievement, featuring a starred and laurelled symbol and a 15-second unlock sound, spotted by Xbox-watcher Klobrille. TrueAchievements says Mythic Achievements are worth zero Gamerscore and appear retroactive, but Microsoft has not officially confirmed the feature or whether it works like PlayStation's Platinum Trophy.

After id layoffs, Quake Champions drops free-to-play and becomes a £9 game on Steam

After nearly a decade as a free-to-play game, Quake Champions is dropping battle passes, loot boxes, premium currencies and its store to become a £9 premium release on Steam. Players who tried it through past free events are upgraded to the full version automatically, and premium currency bought in the past two months will be refunded. The change follows more than 100 layoffs at id Software amid Microsoft's 3,200 cuts, and the team says no additional content updates are planned at this time.

Microsoft files patent for "ad-credit" system to show ads on PC and Xbox without disrupting gameplay

Microsoft has filed a patent for an "ad-credit" system that would display ads and announcements during PC and Xbox game sessions without disrupting gameplay. The system would identify natural pauses such as loading screens, menus, or the end of missions and rounds, then suspend gameplay and controls to show an ad. After viewing the content, players would receive a credit granting a period of ad-free play ranging from 15 minutes to an hour or more.

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.

Final Fantasy VII Revelation Will Have Four Performance Modes On PS5 Pro

Final Fantasy VII Revelation will offer four graphics modes on PS5 Pro: Quality, Performance – Sharp, Performance – Soft, and a mode using PlayStation Spectral Super Resolution for 4K image quality and 60 FPS gameplay. Director Naoki Hamaguchi said the modes differ in hair, environmental detailing, and shading. The game launches on PlayStation 5, Xbox Series X/S, Switch 2, and PC on April 8, 2027.

Bethesda boss confirms Obsidian will remain a distinct team

Bethesda boss Jill Braff told staff that Grounded developer Obsidian Entertainment will remain a distinct team and keep its existing leadership structure. The note follows Xbox's September 22 reorganisation, which moved Obsidian under Bethesda, transferred Rare and ownership of the Halo franchise to Activision, proposed closing Ninja Theory, and confirmed 268 further job cuts. Braff described the move as primarily a change in reporting structure, with Feargus Urquhart and his leadership team continuing to lead Obsidian and reporting to her, while Bethesda Game Studios continues to lead the Fallout franchise.

As Halo moves to Activision, fans worry about a lore reboot, but Halo Fest goes on

Microsoft said this week it is cutting 268 roles across Halo Studios and other first-party teams, and confirmed Activision will develop the next Halo with a new team separate from Call of Duty. Fans are split over whether Activision should reboot the series' 25 years of lore. Halo Studios' esports lead confirmed December's Halo Fest keeps its dates and locations, with more details promised in the coming weeks.

Report: Bethesda president tells Obsidian staff it won't lose 'creative identity' after merge

Bethesda president Jill Braff reportedly told Obsidian Entertainment staff in an email that the studio's merger into Bethesda is "primarily a change in reporting structure," according to Aftermath. The email says CEO Feargus Urquhart and Obsidian leadership will keep running the studio and report to her, while Bethesda Game Studios continues to lead the Fallout franchise and both teams work on a new Fallout project. The merger follows this week's Xbox announcement, which also included divestments and another couple hundred layoffs; Obsidian laid off at least 52 workers in July.

Bethesda takes control of Obsidian Entertainment, promises studio's creative identity stays intact

As part of Xbox's ongoing restructuring, Obsidian Entertainment has been moved under Bethesda's umbrella. Bethesda president Jill Braff told staff that Obsidian's creative identity and strengths will remain at the core of the studio, with CEO Feargus Urquhart continuing to lead it and reporting to her. Braff said Bethesda Game Studios will keep leading the Fallout franchise, and the two teams will build on early work already underway on a new Fallout project.

Age of Empires developer World's Edge hit with layoffs after move to Activision

Age of Empires studio World's Edge has been hit with layoffs after its transition to Activision, with former creative director Adam Isgreen saying he and just under half the team were cut. Isgreen, a 16-year Microsoft veteran, said he was disappointed that his time with World's Edge and Age ends this way. World's Edge was among several studios affected by Xbox's restructuring, which moved it, Rare and Halo to Activision and eliminated 268 positions, while Ninja Theory is set to close and Undead Labs became independent.

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.

Age of Empires studio World's Edge reportedly lost nearly half its staff in Xbox cuts and moved to Activision

Former creative director Adam Isgreen said on the Resetera forums that Age of Empires studio World's Edge lost just under half its staff in yesterday's Xbox restructuring, himself included. The restructuring moved World's Edge under Activision's control, and the initial announcement did not say whether the studio would lose staff. Isgreen, who spent over 16 years at Microsoft on projects including Ori, Minecraft and State of Decay, said he was disappointed by how his time with World's Edge and Age of Empires ended.

Microsoft patent wants to record your face and feed it to a generative AI to redesign your game

A new Microsoft patent describes recording players' facial expressions, mutterings and growls and feeding them to a generative AI that would redesign the game being played. US patent 20260183672A1, titled Generative Narrative Game Experience With Player Feedback, covers prompting AI with text, images and audio to create NPCs, dialogue, items, objectives and sidequests, then analysing player actions and reactions to generate new content. The document describes how the tech would work if built, not a technology Microsoft has already made.

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.

State of Decay 3 studio Undead Labs lays off a significant number of staff after going independent from Xbox

Undead Labs, the studio behind State of Decay 3, has laid off a significant number of staff after announcing it is becoming an independent, employee-owned studio. In a LinkedIn post the studio said the departing developers had poured years into the State of Decay franchise and offered to connect them with other studios hiring. Microsoft had announced plans in July to split with five studios including Undead Labs, and Double Fine, Compulsion Games, Ninja Theory and Arkane have since faced layoffs, a pivot to co-development, possible closure or continued consultation.

Age of Empires studio World's Edge reportedly loses nearly half its staff and a new game project in Xbox layoffs

A verified creative director posted on ResetEra that World's Edge, the studio that manages the Age of Empires series, lost just under half its staff as it moved from Xbox's direct control to Activision. World's Edge creative director Adam Isgreen wrote on LinkedIn that he and many colleagues were among the 268 staff cut in Xbox's latest round, and senior software engineer Andrew Martz said "our next project" was shelved as a result of the Activision move. The 268 cuts are part of a months-long "reset" of Microsoft's games business led by new Xbox CEO Asha Sharma, after around 1,600 layoffs in July, with totals expected to reach an estimated 3,200.

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.

State of Decay studio Undead Labs goes independent and worker-owned as it leaves Xbox, laying off a significant number of staff

State of Decay developer Undead Labs has left Microsoft to become an independent, worker-owned studio amid Xbox's latest round of cuts, but said on LinkedIn it is also laying off a significant number of colleagues. Microsoft said this summer it had found a buyer for the studio without naming them. State of Decay 3 is still in development, targeting a closed beta before the end of the year and a 2027 release, and remains a Game Pass title with a new unnamed publisher, coming to Xbox, PC and PlayStation.

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.