#Studio

Paramount Games Studio and WB Games merge under Skydance after $111bn acquisition closes

Paramount has completed its $111 billion acquisition of Warner Bros. Discovery, with both companies now operating under the Skydance name. According to a memo obtained by Variety, Paramount and WBD's games and experiences divisions will merge to oversee projects based on both companies' IP, led by Paramount Games Studio president Tony Driscoll. Paramount Games Studio was established this summer and is led by EVP and head of games Dan Prigg, combining Paramount's IP with Skydance Interactive and Skydance New Media.

Former Activision Blizzard CEO Bobby Kotick joins Skydance board as Paramount Games Studio merges with Warner Bros. Games

Bobby Kotick has been named to the board of the newly formed Skydance Corp., which now controls both Paramount and Warner Bros., though no direct management role in either company's gaming divisions was announced. Skydance confirmed that its recently announced Paramount Games Studio will merge with Warner Bros. Games, with the combined division reporting to Tony Driscoll. Big projects in the works include Hogwarts Legacy 2 and a new Batman: Arkham-style game from Rocksteady Studios.

Undead Labs leaves Xbox to become employee-owned, explains early State of Decay 3 reveal

State of Decay 3 developer Undead Labs has left Xbox Game Studios to become an independent, employee-owned studio. Studio boss Philip Holt told The Game Business that nothing went wrong, and that he proposed a management-led buyout which Microsoft accepted, since the studio was close to revenue and could raise the remaining funds for State of Decay 3 itself. He also said the game was announced back in 2020 partly to keep the project and studio on Microsoft's radar during its acquisition spree of publishers like Bethesda and Activision Blizzard, with a small team working on it since then.

Undead Labs on splitting from Xbox: State of Decay 3 needs changes after layoffs

Undead Labs has spoken out after rebuying its independence and leaving Xbox last month, with studio boss Phillip Holt saying State of Decay 3 needs some changes because of the layoffs, though he does not expect a dramatic scope change. The game is in alpha with a closed group of testers, has a vague 2027 release window, and will still launch on Game Pass day one. Holt also explained the 2020 reveal was meant to keep the studio from being swallowed up or divested, and said the series has reached 25 million players.

Undead Labs discusses Xbox split, says State of Decay 3 needs changes after layoffs

Undead Labs has spoken about its split from Xbox. The studio said it has to make some changes to State of Decay 3 following layoffs.

Skydance merges Paramount and Warner Bros. game studios into one unit

After Paramount's $111 billion acquisition of Warner Bros. Discovery, Warner Bros. Interactive will merge with the newly formed Paramount Games Studio to oversee projects based on Skydance's newly acquired IP library, including Avatar: The Last Airbender, South Park, Mortal Kombat, Game of Thrones, Star Trek and DC Comics IP. The new division will be led by Tony Driscoll, president of games and experiences at Skydance, and will house studios such as Avalanche Software, NetherRealm Studios, Rocksteady Studios and TT Games. It remains unclear what the division's future plans are or how hard it will be hit by layoffs.

Xbox CEO reportedly tells staff the company has "started to return to growth" at internal town hall

Xbox CEO Asha Sharma reportedly told staff at an internal town hall that Xbox has started to return to growth after an all-time low, at more than two to three times its previous level. She said first-party had returned to growth and user engagement had stabilised after declines earlier this year, citing strong launches for Gears of War: E-Day, Minecraft Dungeons 2 and World of Warcraft Forever. She also reiterated plans to evolve Game Pass into a more flexible system and said next-gen hardware Project Helix will be a family of devices rather than a single console.

Asha Sharma says Xbox has returned to growth after restructuring and layoffs

Eurogamer reports that Asha Sharma said Xbox has started to return to growth after drastic restructuring and many hundreds of layoffs. She described the earlier period as an all-time low for the business.

Xbox CEO Asha Sharma says the company has returned to growth after restructuring and layoffs

According to a transcript seen by Windows Central, Xbox CEO Asha Sharma told an internal town hall that Xbox has started to return to growth after wide-ranging restructuring and more than 1,800 job losses, at two to three times its previous level. She named Gears of War: E-Day, Minecraft Dungeons 2 and World of Warcraft: Forever as recent releases with strong starts, and said earlier declines in hours played, players and revenue had stabilised. On Game Pass she said the previous strategy sent profitability into freefall, and she reaffirmed Project Helix as a family of devices while hinting at another handheld beyond the ROG Ally X.

Undead Labs boss on going independent: investors sit on the sidelines, labour costs a key worry

Undead Labs boss Philip Holt says there is still capital in the games industry, but investors are sitting on the sidelines waiting for obvious slam dunks, with labour costs a key concern. He noted the studio is based in Seattle, one of the most expensive places to make games, and that investors scrutinised its unit cost of labour. Last month Undead Labs bought its independence back from Microsoft via a new holding company, Full Measure, with layoffs following; Holt says State of Decay 3 has seen some changes and is still aiming for release next year.

Forza Horizon 6 studio acknowledges to players 'we haven't been talking with you as much as we could be'

Playground Games has released a statement acknowledging it hasn't communicated with the Forza Horizon 6 community as much as it could have, saying it hears feedback on post-launch updates and is looking into future changes to in-game content and communication. The game launched on Xbox Series X|S and PC in May with a Metacritic score of 90, and its PS5 version is still planned for 2026 but has no release date yet.

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.

Same story, shown on the selected item Paramount Games Studio and Warner Bros. Games to merge into one unit under Skydance, overseen by Tony Driscoll

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.

Same story, shown on the selected item Paramount Skydance completes $110 billion acquisition of Warner Bros. Discovery

Xbox CEO reportedly tells staff first-party has returned to growth after an all-time low

Xbox CEO Asha Sharma reportedly told staff at a Tuesday town hall that the company's first-party games business has returned to growth after year-over-year declines, now more than two to three times its previous level, though no numbers were confirmed. She cited strong starts for Gears of War: E-Day, Minecraft Dungeons 2 and World of Warcraft Forever, and claimed a 30% rise in positive brand sentiment over the past year. She also said the previous Game Pass strategy sent Xbox into decline and suggested Game Pass may become more flexible for more players.

Supermassive Games reportedly lays off over 70 staff in a day

Eurogamer reports that Supermassive Games, the developer behind the original Until Dawn and Directive 8020, appears to have lost over 70 staff in a single day amid widespread layoffs. The report links to the full story.

Skydance plans to combine newly formed Paramount Games Studio with WB Games and names games leadership

According to an email sent to staff Tuesday evening and obtained by Variety, Skydance plans to combine the newly formed Paramount Games Studio with WB Games and set leadership across its games and experiences business. Tony Driscoll will be president of games and experiences while also leading corporate strategy and development, and Josh Silverman will be president of global products and publishing. Jim Sterner remains chief people officer, Jose Turkienicz remains president of global operations, and Jeff Silberman becomes Gordon's chief of staff while continuing as executive vice president of corporate strategy.

Xbox Was At An "All Time Low," But Is Now Growing Again, CEO Says Without Providing Any Real Evidence

Xbox CEO Asha Sharma told staff at a town hall that the business has started returning to growth after hitting an all-time low, saying it is now more than 2 to 3 times what it was, but she shared no specifics. She also said Gears of War: E-Day, Minecraft Dungeons 2, and World of Warcraft: Forever had "strong" starts, again without details. Sharma confirmed the "Gen-10" platform, known as Project Helix, will be a family of devices, with Microsoft manufacturing some and finding partners for others.

Forza Horizon 6 Dev Issues Statement In Response To Fan Frustration

Playground Games has issued a statement saying it has read player feedback about Forza Horizon 6's post-launch updates and is looking into future changes to both in-game content and communication. Fan frustration has centered on the lack of street racing and updates adding little value. A new Horizon Meets update arrives this Thursday with a 7-Eleven Car Meet, 3 new-to-Horizon cars and a new Treasure Car, with the next update themed around City Life.

Dungeons & Dragons and Magic: The Gathering Teams Are Forming a Union

Developers behind the Dungeons & Dragons tabletop RPG, D&D Beyond, Magic: The Gathering, and Duel Masters are unionizing and would join United Wizards of the Coast, a union formed earlier this year by Magic: The Gathering Arena developers with the Communication Workers of America. The group is seeking layoff protections, better wages, protections against AI, remote work protections, and full ownership of work created outside WotC offices. United Wizards of the Coast is asking supporters to sign a petition urging parent company Hasbro to voluntarily recognize the union, though WotC leadership previously sent letters to Magic: Arena developers asking them to carefully consider whether they truly wanted a union.

Undead Labs studio head says they were 'irresponsibly transparent' about layoffs, says State of Decay 3 still targets 2027

Undead Labs studio head Philip Holt told The Game Business that he told staff early and directly that layoffs were likely after Xbox announced in July it would divest the studio, and the layoffs came in late September. Holt declined to confirm the number of job losses, saying that turns layoffs into a statistic, though the studio said on LinkedIn the cuts were significant. After separating from Microsoft, Undead Labs went independent and kept the State of Decay property, and Holt says State of Decay 3 is still targeting a 2027 release.

Philip Holt: State of Decay 3 development didn't ramp up until 2022-2023

State of Decay 3 developer Philip Holt said the game had only a small team since around 2020, and development didn't really pick up until 2022 or 2023. He noted that measuring from State of Decay 2's release, it's approaching eight years, and it's also been a long time since the first trailer with the infamous zombie deer.

Eternal Strands developer Yellow Brick Games staff report layoffs

According to several LinkedIn posts, Yellow Brick Games, the studio behind Eternal Strands, has begun laying off staff to an undisclosed degree. Those posting include senior environment/hard surface artist Derian McCrea, graphics engineer Adam Clapsaddle, software programmer Rebecca Bélanger, QA lead Jessica Chapados Arseneault, and senior level designer Julien Tonsuso. Co-founded in 2020 by original Dragon Age creative Mike Laidlaw and several former Ubisoft developers, the studio self-published Eternal Strands in January 2025 and released a free DLC expansion that April. RPS has contacted Yellow Brick Games for comment.

Ex-Undead Labs Boss: State of Decay 3 Was Revealed Early Over Fear of Being Swallowed Up by Xbox

Former Microsoft-owned Undead Labs boss Holt said State of Decay 3 was revealed early out of concern the studio could be "swallowed up or divested" amid Xbox's acquisition spree before it could show what it was working on. The game was announced at an Xbox showcase in 2020, when only a small team was on it, and development didn't pick up until 2023. It remains in active development and will launch day one on Game Pass, after Undead Labs went independent last month.

State of Decay 3 studio head on leaving Xbox: from tentpole first-party IP to ensuring survival

Undead Labs has separated from Xbox after a planned sale to Splash Damage fell through, financing a management buyout instead. Studio head Philip Holt told The Game Business that inside first party State of Decay was expected to grow into a tentpole Xbox IP, while as an independent company it must ensure survival and a durable cost structure. He did not name State of Decay 3's new publisher or say how many people were laid off last month; the studio will be employee-owned with stock issued in coming weeks, and the acquisition vehicle is called Full Measure. State of Decay 3 will soon open closed beta sign-ups on PC, with a full alpha test planned for 2027.

Ninja Theory appears to face layoffs after consultation with Xbox

Eurogamer reports that Ninja Theory's consultation process with Xbox appears to have resulted in layoffs. The studio had gone through a second wave of cuts the previous week.

Supermassive Games lays off more than 70 staff two months after announcing plans

Supermassive Games, the studio behind The Dark Pictures Anthology, has laid off more than 70 staff across development, art, production, QA and operations. The cuts were announced in August, when the company said they were needed to ensure its sustainability. It is the studio's second major round of layoffs, after more than 30 developers were cut in July 2025, which delayed Directive 8020.

Undead Labs goes independent from Microsoft with employee ownership, studio head says he was 'irresponsibly transparent' about layoffs

State of Decay developer Undead Labs has bought itself out from Microsoft through a company called Full Measure and moved to employee ownership, a process studio head Philip Holt says led to a significant number of people leaving. Holt said he was irresponsibly transparent with staff during Xbox's reset, telling them early that job losses were likely so they were prepared on the day of layoffs. He said the studio has made some changes to State of Decay 3 after the layoffs, but the project was not radically rescoped and is still set for release in 2027.

As Halo Moves to Activision, Halo Studios Writers Tease What Might Have Been

Following the launch of Halo: Campaign Evolved, Halo Studios published a blog post from franchise writer Alex Wakeford hinting at where Master Chief's story might have gone before Activision took over the Halo series. The post says novels Halo: Fireteam Noble by Troy Denning and Halo: Burn the Road Home by Kenneth Peters are still in the works, though their future is uncertain. It also teases the Xalanyn with concept art, suggesting the now-scrapped next Halo game would have revealed more about the mysterious antagonists.

Employee posts say Ninja Theory has begun laying off staff

According to employee posts, Ninja Theory has begun laying off staff. GamesIndustry relayed the accounts and linked to its report.

Until Dawn studio Supermassive lays off more than 70 staff

Supermassive Games, the studio behind Until Dawn and The Dark Pictures Anthology, has carried out layoffs affecting more than 70 staff across development, art, production, QA and operations. In August the company said redundancy consultations could see up to 75 people let go, citing the need to help ensure the company's sustainability. Veteran Frank Tindle said on LinkedIn he is leaving after 16 years, and talent acquisition leader Tim Browning also posted about his departure.

Supermassive Games layoffs land as more than 70 developers leave this week

More than 70 staff appear to have left Supermassive Games this week, spanning developers, artists, producers, QA and operations. The studio had said in August it would begin a redundancy consultation expected to cut up to 75 colleagues, calling it necessary for the company's sustainability. Former IT and facilities director Frank Tindle announced his departure on LinkedIn, saying any studio would be lucky to hire those leaving. In July 2025 the studio announced up to 36 layoffs, which delayed Directive 8020.

Supermassive Games suffers layoffs as more than 70 developers appear to have left this week

Eurogamer reports that Supermassive Games has suffered layoffs, with more than 70 developers seemingly having left the company this week. The report links to a full article on eurogamer.net.

Industry layoff watch: Supermassive, Ninja Theory, The Coalition, and a warning from Warhorse

PC Gamer rounds up the latest layoffs and studio closures in the games industry. Supermassive Games completed layoffs affecting more than 70 employees after announcing up to 75 roles at risk three months after Directive 8020's release, while Microsoft is moving toward closing Ninja Theory after two failed divestment attempts. Multiple sources at The Coalition told Eurogamer that staff fear cuts around Gears of War: E-Day's launch, and Warhorse Studios co-founder Martin Klima predicted in a September PC Gamer interview that cost pressure could push studios to cheaper regions such as Central and Eastern Europe, China, India, or East Asia.

PC Gamer roundup tracks layoffs at Supermassive, Ninja Theory, The Coalition and a warning from Warhorse

PC Gamer published an industry layoff roundup covering Supermassive, Ninja Theory and The Coalition, along with a warning from Warhorse. The post itself only provides the headline and a link, without specific layoff numbers or details.

Supermassive lays off 70 people less than six months after Directive 8020

Supermassive Games laid off more than 70 people on October 5, less than six months after releasing its sci-fi horror game Directive 8020 earlier this year. Frank Tindle, the IT and facilities director who was also laid off, announced the cuts on LinkedIn, saying developers, artists, producers, QA and operations staff were among those leaving. The studio had warned of layoffs in August, calling it a necessary step for the company's sustainability, and its Until Dawn sequel is set for 2027 under Sony's Firesprite.

Halo Studios says "it is absolutely our intent" to release new Halo book, despite layoffs and a rumored lore reboot from Activision

Halo Studios writer Alex Wakeford said it is "absolutely our intent" to finish Troy Denning's Halo: Fireteam Noble and Kenneth Peters' Halo: Burn the Road Home novella, despite mass layoffs and the series moving under Activision's supervision. Fireteam Noble was previously set to release next year and takes place after Halo 5's story, while a pre-layoff blog post said Burn the Road Home is "dropping out of slipspace next year."

Hideo Kojima Shares New Physint Details: Casting, Story, and Development on His Metal Gear Spiritual Successor

Hideo Kojima revealed on his revived Koji10 podcast that Physint, his next-generation action-espionage game and Metal Gear Solid spiritual successor, already has its plot finished and all its actors pitched by Kojima himself, about 70% of whom are Kojima fans. Filming starts next year, with Bill Skarsgard, Charlie Fraser and Minami Hamabe already scanned. Kojima's other Microsoft game, the PT spiritual successor OD, is expected to release before Physint, which he said last year was 5-6 years away.

Ninja Theory begins laying off staff, according to employee posts

Ninja Theory has begun laying off staff, according to employee posts. GamesIndustry reported the news, with the number of affected staff and roles not yet disclosed.

Rumor: Ninja Theory has started laying off staff

A post on Reddit's Gaming Leaks and Rumours board claims Ninja Theory has started laying off staff. The post has no body text and gives no number of affected staff, timing, or official response.

Supermassive Games lays off over 70 people

According to a post title on r/GamingLeaksAndRumours, Supermassive Games has carried out layoffs with more than 70 people let go. The post has no body text, so further details are not yet available.