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NEWS: Xbox Announces Layoffs Amid 'Reset' of Video Game Division

The ActiBlizz deal was the worst thing to happen to the Western sector of gaming in years and has caused untold amounts of damage,

Microsoft: “We canned Avowed 2 and all these other terrible game studios and instead we’re making New Vegas 2 with the original director” *mic drop*

Unless I’ve overlooked the sarcasm pretty sure the news over an Obsidian directed 2nd Fallout game has been taken with an essentially as “I wanted this, but not like this”.

And isn’t even anything to get hyped up about when the game could still be canceled at some point, have a terrible launch like Fallout 76 or Fallout 4’s Anniversary Edition, or fail to make a dent just like Obsidian’s last two games.

The industry isn't "going" to crash, this is the crash. Lives are ruined, talent is wasted. Billions of dollars spent just to send more people to the slaughter. What a disgrace.

The only solace here is that once the dust settles and Asha is ousted--and she will be thrown to the wolves--only then is she gonna get the reputation of being a grim reaper. It happened to Phil Spencer, it'll come to her, and it'll come to whichever sucker is brought in to be her fall-guy.

Sony: *kiII physical media and has their entire fan base turn on them*

Microsoft: “We canned Avowed 2 and all these other terrible game studios and instead we’re making New Vegas 2 with the original director” *mic drop*

You go, Asha. Clean house.

I'm not even a FPS guy, but even I know that id Software is one of the most historically important, legendary studios in all of gaming. Not even just in America, freaking worldwide. Those guys made the FPS, Doom 2016 is still a phenomenal title, and Doom Eternal is still used at this moment as a benchmark for PCs. A studio like that is a studio that should be given a blank check to do whatever the hell they want, forever.

And they gutted the studio like a fish.

I'm amazed that Microsoft hasn't killed Rare yet.

Yuuuup, just because it isn't 1983 doesn't mean it's not a crash. When the books are written, 2026 will officially be seen as the 2026 Video Game Crash, though it likely began before this year. MS is effectively nullifying not just their 2018 spending spree, but also their 2020 Zenimax acquisition and reducing it to an IP mine.

Psychonauts studio Double Fine and South of Midnight creators Compulsion are the two studios being allowed to return to independence. As part of the agreement, both companies will retain their IPs and game catalogs and receive investment.

Commenting on the news, Double Fine said it was “thankful to everyone at Xbox for seven great years together, and for working with us to reach an outcome which preserves our history and culture, and returns ownership of our games to us.”

“Today, we’re sharing that Compulsion Games will return to independent management following our time as part of Xbox. As part of this transition, we will retain the rights to Contrast, We Happy Few, and our award-winning South of Midnight."

“We’re grateful for the years we spent with Xbox, for the support they provided our team, and for the opportunity to bring these games to players around the world. As an independent studio, we’re excited to continue building the distinctive games that define Compulsion while taking the next steps in our journey.”

Sharma is reportedly pushing for increased investment in Microsoft's most valuable gaming franchises, including Halo, Fallout, The Elder Scrolls, and Minecraft. Her goal is to accelerate development cycles and ensure a more consistent pipeline of premium releases that can attract players, drive subscriptions, and strengthen the Xbox ecosystem.

The long development cycles have frustrated gamers and created gaps in Xbox's exclusive content strategy. By allocating more resources and streamlining production, Microsoft hopes to bring these franchises to market faster without compromising quality.