Several Development Teams Owned by Publishers to Face Major Layoffs, Studio Closures Soon – Rumor

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New information suggests Microsoft’s Xbox team will likely have significant layoffs soon after June 30th, which marks the end of their financial year. Earlier reports hinted at potential studio closures, but a recent article by French journalist Sylvain Trinel implies these cuts could be much wider-reaching within the gaming industry than first expected.

Trinel predicted more widespread job cuts at game companies, calling the initial layoffs “only the start of a huge wave of reductions.”

According to Trinel, alongside Microsoft’s game development teams such as id Software and Bethesda, other prominent developers like DON’T NOD and Quantic Dream are also likely facing layoffs. He predicts widespread job losses across the industry, calling it a potentially disastrous situation.

In addition to these companies, Trinel suggests that BioWare may also be facing difficulties, which seems probable given Electronic Arts’ current pressure to increase profits following its recent acquisition.

Trinel reported that the signals she detected tonight were worrying, and suggested that the current situation is only going to escalate.

Xbox is facing increased pressure under its new CEO, Asha Sharma. She recently announced the company expects a 3% decrease in profitability compared to last year, and a new report suggests further budget cuts are planned across various departments, including marketing and other business areas.

In a recent blog post, Microsoft Gaming CEO Satya Nadella and Xbox Chief Content Officer Matt Booty explained that they expect to finish the current financial year with an accountability margin of around 3%, which is lower than last year. They also stated that over the past five years, Microsoft has invested more than $20 billion in games, the Xbox platform, and hardware, but annual revenue has decreased by almost $500 million. They emphasized that this trend is unsustainable and needs to change.

Electronic Arts (EA), the owner of BioWare, is being bought by a group of investors including Saudi Arabia’s Public Investment Fund, Affinity Partners, and Silver Lake Partners. Shareholders approved the $55 billion deal in December, and now the company is waiting for approval from government regulators before the sale can be finalized.

Shortly after Microsoft announced its plan to acquire BioWare, developers at the studio reportedly began to worry about the future. Several developers shared concerns and even started updating their professional portfolios, preparing for potential negative outcomes.

The developer has been in their current role for over a year, but is now actively preparing a portfolio and exploring new job opportunities. They anticipate leaving eventually, saying it ‘feels like just a matter of time’.

Some people expressed their intention to continue working until management officially gives the order to stop. They admitted it’s not ideal, but as long as they’re getting paid, they plan to keep working. They stated, “We’ll work until we’re told to stop, and honestly, we can’t afford to just quit.”

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2026-06-16 16:12