#Microsoft

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.

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.

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.

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.

Microsoft files patent for a machine learning system that would "train" itself on your playtime to work out when you'll be least annoyed by in-game ads

Microsoft has filed a patent for an in-game advertising system that could use machine learning to read player activity and determine when ads would be least disruptive. The patent, "Contextually Aware Management of Interactive Software Application Access," was filed in April and published by the USPTO on 3rd September. It describes pausing play to show ads at moments like safe locations or after events such as completing a level or defeating an NPC, and possibly letting players earn credits to delay the next ad.

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.

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.

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.

Bill Skarsgård to Lead Kojima Productions' Physint, Now Published by Xbox

Kojima Productions announced that Bill Skarsgård will play the lead in Physint, with Hideo Kojima saying costume fittings, scans and camera tests were done earlier this year. The game, a spiritual successor to Metal Gear Solid, was originally a PlayStation-published title, but PlayStation recently dropped out and Xbox was revealed as its new publisher the same day. Charlee Fraser, Ma Dong-seok and Minami Hamabe were previously confirmed for the cast.

Activision Blizzard sued by former employee over sexual harassment

Activision Blizzard is being sued by a former employee who claims she was sexually harassed during her time at the company. The lawsuit, filed in Los Angeles County Superior Court earlier this month, alleges a pervasive "frat boy" workplace culture, with the claimant accusing 10 men of harassment, physical assault, and inappropriate comments, and saying her reports to supervisors and HR were ignored. A Blizzard spokesperson said the company takes the allegations seriously, while a Microsoft spokesperson confirmed the lawsuit relates only to alleged misconduct within Blizzard, which was not yet owned by Microsoft at the time. Activision Blizzard previously settled a modified version of a 2021 California Civil Rights Department lawsuit in 2023 for $55 million.

Survey: over 40% of US users cancelling Xbox Game Pass, PS Plus and Switch Online cite rising costs

Circana survey data shows that over 40% of US users cancelling Xbox Game Pass Essential, PS Plus Essential and Nintendo Switch Online cite cost as a primary driver. Analyst Mat Piscatella stressed the figure reflects why existing cancellers leave, not how many people are cancelling. Among recent Nintendo Switch Online cancellers, 50% said they liked the service but couldn't justify the cost within their budget, up from 40% earlier in the year, while the same figure for Xbox Game Pass Essential and PS Plus Essential rose from 37% in Q1 to 40% now.

Report: PlayStation ended Kojima Productions' Physint over budget, profitability and exclusivity concerns

Bloomberg reports that PlayStation ended its involvement with Kojima Productions' Physint over concerns about budget, potential profitability and exclusivity. Sources said the project had missed deadlines and was on track to be well over budget despite being years from release, and that Death Stranding and its sequel On the Beach did not meet PlayStation's revenue expectations. Hideo Kojima said last Thursday his studio unexpectedly received notice in mid-June that PlayStation would cancel Physint, and Kojima Productions has since found a new partner in Xbox.

Goodwill Hunting: Consoles' Brand Value and Loyalty Is Being Tested | Opinion

Xbox Game Studios has picked up publishing rights to Hideo Kojima's Physint after Sony dropped the project, which was originally announced at a Sony State of Play event in early 2024. Sony's exit likely reflects Death Stranding 2: On The Beach's roughly 2 million copies sold and Physint's long development timeline, while Xbox is betting on Kojima's return to stealth-action. The move chips away at the goodwill Sony and Microsoft will need as they prepare to sell what will likely be their most expensive consoles ever.

State of the Unions: the rise of unionisation in games workplaces

Unionisation in the games industry has grown rapidly over the past decade, with workers in more than 130 distinct groups and unions across over 15 countries organising together, according to IWGB Game Workers co-founder Austin Kelmore. Microsoft agreed a contract this week with 1,900 Blizzard workers covering hybrid work and AI protections, recall rights, minimum severance above industry standard and up to 34% wage increases. The Polish Gamedev Workers Union is officially established within ten Polish studios, though Poland's legal framework for unions still favours employers.

GTA 6 Netflix preview drove over 100,000 sign-ups in six-hour exclusivity window

Rockstar's Grand Theft Auto 6 preview, shown exclusively on Netflix for six hours on August 27, generated over 100,000 US sign-ups, according to Ampere Analysis, making it Netflix's third-largest subscriber spike of 2026 behind Stranger Things' final season and the Rousey vs. Carano MMA fight. The preview reached 31.1 million views on Netflix within four days, with over 5% of viewers who had not used Netflix in 30 days returning to watch it. Nielsen IQ data showed the preview raised PlayStation and Xbox hardware sales in the UK by 33% and 34% respectively.

Newzoo: Most established live-service and evergreen titles were flat or down year over year in H1 2026

Newzoo data shows most established live-service and evergreen titles were flat or declined year over year in H1 2026, with growth limited to titles including World of Warcraft, Diablo 4, Overwatch, Roblox and select Tencent international releases. The firm forecasts 3% console player growth this year, up from 0.5% in 2025, driven by Grand Theft Auto 6 and PlayStation. Tencent led Q1 2026's top 10 public games companies with $10.8 billion in revenue, up 11.9%, as the group totaled $37.4 billion, up 6.7%.

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.

Nearly 1,900 Blizzard workers ratify first union contract with Microsoft

Blizzard Entertainment's first union contract with parent company Microsoft was ratified by a workforce vote covering just under 1,900 staff after more than two years of negotiations. The deal includes protections on generative AI use, crediting, remote work, and layoffs, requires AI-assisted workflows to remain under human review, and mandates bargaining before implementing AI tech that would materially impact union employees' work. Blizzard president Johanna Faries called the ratification a significant milestone, while Activision's King rejected a collective bargaining agreement with Swedish unions Unionen and Sveriges Ingenjörer.

An interesting stat that these time limits will only "impact 4% of Game Pass subscribers."

25k likes on a “source: I made it up” post.

UK and China's Shifting AI Mandates | 31/07/26

i stopped trusting this company after perfect dark, but this is so grim

Forza Horizon 6 tops previous series entries on Steam before its official launch

Forza Horizon 6 does not officially launch until May 19, but owners of the $120 Premium Edition can already play it. At the time of writing it has peaked at 128,157 concurrent players on Steam, above Forza Horizon 5's 81,096 and Forza Horizon 4's 75,689. The game has spent 16 weeks in Steam's global top sellers list and currently sits at number two, up three spots this week.

Forza Horizon 6 review: still the car-collecting driving game for everyone

A review of Forza Horizon 6 finds it remains a car-collecting driving game rather than a racing game focused on track craft. Progress is gated by a new Wristband system earned through Qualifiers and PR Stunts, while the parallel Discover Japan track offers relaxed activities such as food delivery and convoy tours. The new Horizon Rush events are timed races on makeshift circuits with pre-determined cars, and the game was reviewed on PC with code provided by the publisher.

The Best Xbox Game Pass Games In 2026

GameSpot rounds up the best games currently available on Xbox Game Pass, spanning big AAA titles, day-one releases, and overlooked gems like 2025's Blue Prince. Game Pass Ultimate's monthly price dropped to $23 after rising to $30 in late 2025, but new Call of Duty games will no longer be included at launch and will only arrive about a year after release. Game Pass Essential costs $10 a month with 50+ games and online multiplayer, Premium costs $15 with 200 playable games, and PC Game Pass costs $14.