Second wave of Xbox cuts reported to be happening this week, with "several" studios apparently facing consolidation

eurogamer.net Sep 23, 2026

Second wave of Xbox cuts reported to be happening this week, with “several” studios apparently facing consolidation

Curated by Shubham · TechCapsules · Sep 23, 2026

AI-summarised brief · reviewed before publication

Xbox is preparing a second round of layoffs this week, according to an exclusive report by The Information. The unnamed source says Microsoft will consolidate “several” studios, though specific units were not identified. This follows the July restructuring that cut 1,600 jobs across the Xbox portfolio and led to the sale or spin‑off of studios such as Ninja Theory, Undead Labs and Arkane Lyon. CEO Asha Sharma’s “reset” plan aims to refocus the gaming division on flagship franchises like The Elder Scrolls and Fallout, even as those very studios—Bethesda, Zenimax Online, and id Software—were among the most affected in the first wave. Morale at Xbox is reported to be low, and the upcoming cuts could deepen internal uncertainty.

💡 Why It Matters

· The timing suggests Microsoft is accelerating its profit‑driven overhaul, forcing remaining talent to confront a rapidly shrinking development base while the company doubles down on a handful of high‑profile IPs.

Read full article on eurogamer.net

The Blood of Dawnwalker getting a new difficulty option, combat changes and…

Game director Konrad Tomaszkiewicz announced a substantial October patch for The Blood of Dawnwalker that adds a new, easier difficulty level, revamps combat targeting, and improves escape mechanics. The forthcoming “Story” mode will replace the current easiest setting, while the existing Story difficulty will be renamed and sit between Fair and Challenging tiers, giving the game five distinct levels. Targeting quirks tied to stun abilities will be adjusted, allowing smoother target switches and reducing accidental self‑stuns. Performance issues flagged by Steam reviewers, especially frame‑rate variability and controller support, will also be addressed, though Tomaszkiewicz cited the sheer number of PC hardware configurations as a launch challenge. The studio hinted at a possible New Game Plus mode and additional enemy types, but offered no further details.

💡 By lowering the entry barrier and fixing core combat frustrations, the patch aims to retain casual players who might otherwise abandon the title, strengthening its long‑term community.

gamesradar.com · Sep 23

Monster Hunter producer says “the desire is there” at Capcom for a…

Monster Hunter series producer Ryozo Tsujimoto told Postmode that Capcom remains interested in a new live‑action adaptation of the franchise despite the 2020 film’s poor performance. The Paul W.S. Anderson‑directed movie earned under $50 million worldwide, scored 45 % on Rotten Tomatoes and has been widely criticized, yet Tsujimoto said the “desire is there” if the right director, partners and timing align. He emphasized that any reboot would require a collaborative effort and a clear vision of what to portray. Capcom’s broader push into film and visual media supports the idea, though no concrete plans have been announced. Meanwhile, the game Monster Hunter Wilds will receive the Ascendance expansion on PC, Xbox Series X and PS5 next year for fans eagerly awaiting fresh content.

💡 A hit reboot would validate Capcom’s expanding media ambitions and reshape perceptions of video‑game movies.

playstationlifestyle.net · Sep 23

PlayStation Plus Adds Surprise Hit 2025 PS5 Game to Catalog

PlayStation Plus Extra added the surprise 2025 PS5 title Ball x Pit to its catalog on September 29, 2024, making it available in Japan and the United Kingdom immediately and in the United States at noon Pacific time. The roguelite‑action game joins horror‑action adventure Slitterhead, which is already accessible to subscribers in all regions. Both titles appear alongside the regular September lineup that includes Ninja Gaiden: Ragebound, Dungeons of Hinterberg, and Sniper Elite: Resistance. Sony’s rollout follows its staggered‑release model, delivering new content to different markets at slightly different times. The announcement was posted on PlayStation LifeStyle, confirming the titles’ official store listings and confirming the final September 2026 batch for U.S., U.K., and Japan subscribers.

💡 Adding a fresh, genre‑blending roguelite expands PS Plus’s value proposition, giving subscribers a unique, previously unreleased experience that differentiates the service from competing game libraries.

gamesradar.com · Sep 23

Xbox announces a further 268 layoffs as Ninja Theory and Arkane remain…

Xbox announced a further 268 layoffs, bringing the company to roughly three‑quarters of its planned 3,200‑job reduction through FY27. Chief content officer Matt Booty said the cuts target Halo Studios, other first‑party studios, and Xbox Game Studios (XGS) management and central functions. The move follows a July round that cut 1,600 roles after CEO Asha Sharma launched the “most significant restructure in Xbox history” to restore growth and profitability. Recent studio changes include the separation of Compulsion Games and Double Fine, Undead Labs’ transition to a new publisher, and the collapse of two deals with Ninja Theory, prompting consultation on a possible closure. Arkane’s fate remains under consultation, while Obsidian now reports to Bethesda for a new Fallout title. The layoffs underscore Xbox’s ongoing “Reset” strategy.

💡 The cuts tighten Xbox’s focus on core franchises and could reshape its first‑party portfolio, influencing the future of high‑profile titles like Halo, Senua, and Marvel’s Blade.

eurogamer.net · Sep 23

World of Warcraft fans are torn about whether Forever’s Skyborne starting zone…

Blizzard’s World of Warcraft: Forever beta has unveiled the new Skyborne race and its opening zone, Zephras Isle, sparking debate among Classic WoW fans. The “found photographs” concept presented at BlizzCon promised that any added content would feel like it could have existed in the original vanilla game. Critics argue the Skyborne questline breaks that premise by thrusting players into a high‑level elemental‑lord encounter before level 15, a threat traditionally reserved for end‑game raids such as Molten Core. Reddit users compare the dramatic, world‑saving narrative to the modest human starter quest that ends with a fight against Hogger. While other new quests have been praised for their low‑key storytelling, the Skyborne introduction is seen as a tonal mismatch that may foreshadow Blizzard’s future content direction. The full impact will become clearer when the complete release launches on 4 November.

💡 The controversy reveals how tightly the community guards the nostalgic identity of Classic WoW, and whether Blizzard can successfully blend fresh epic narratives with a legacy‑centric experience.

ign.com · Sep 23

Handing Halo to Activision Makes Business Sense, but Is That Enough To…

Xbox CEO Asha Sharma has transferred development of the next mainline Halo title to Activision, the studio behind Call of Duty and a core asset of Microsoft’s $69 billion acquisition. The move follows a series of layoffs at Halo Studios—formerly 343 Industries, which was rebranded less than a year ago—and a history of uneven critical reception for Halo 4, 5 and Infinite, attributed by insiders to management inefficiencies and reliance on contractors. Activision secured regulatory approval after navigating antitrust scrutiny, positioning its multi‑studio pipeline to deliver a blockbuster Halo entry on a tighter schedule. Sharma’s decision reflects a franchise‑first strategy, prioritizing timely delivery over internal development continuity, and signals a major shift in Microsoft’s flagship shooter stewardship.

💡 By handing Halo to Activision, Microsoft bets on proven production speed to revive a flagging franchise, potentially reshaping the competitive dynamics of first‑person shooters across console ecosystems.