Every studio affected by Xbox’s ‘reset’ – July 2026 layoffs

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New Xbox CEO Asha Sharma’s “reset” of the company in July 2026 spelled the end of jobs for thousands. On the morning of July 6, 2026, Sharma revealed 1,600 Xbox employees had lost their jobs, with 1,600 more yet to go before the end of the 2027 fiscal year. Even more employees across other departments of Microsoft had been let go, too, marking a truly dark day in the tech industry. The Xbox layoffs took place across a number of studios and companies, including the selling of a number of studios. Thankfully, no studios have been fully closed, but Sharma still called it “the most significant restructure in XBOX history.” “None of our first-party publicly announced games or projects are being cancelled as part of these reductions,” Sharma also said, meaning that any game that’s been revealed to have been in development is safe so far. Here’s everything we know so far about what developers and games have been affected by Sharma’s “reset.” Table of contentsJuly 2026 Xbox reset layoffs and changesCompulsion GamesDouble Fine ProductionsNinja TheoryUndead LabsArkane LyonActivisionBlizzardBethesda/ZeniMaxKingMojang July 2026 Xbox reset layoffs and changes Screenshot by Destructoid Compulsion Games Image via Compulsion Games Games it’s known for: South of Midnight, We Happy Few, Contrast How it’s been affected: Allowed to become independent along with “their IP, catalog, and runway for their next games.” Double Fine Productions Screenshot by Destructoid Games it’s known for: Kiln, Keeper, Psychonauts, Grim Fandango How it’s been affected: Allowed to become independent along with “their IP, catalog, and runway for their next games.” pic.twitter.com/nGDG5ZDe7c— Double Fine (@DoubleFine) July 6, 2026 Ninja Theory Image via Microsoft Games it’s known for: Senua franchise How it’s been affected: “Entered terms to join new ownership with funding to complete and grow Senua.” Undead Labs Image via XBOX Games it’s known for: State of Decay franchise How it’s been affected: “Entered terms to join new ownership with funding to complete and grow State of Decay 3.“ Arkane Lyon Image via Arkane Games it’s known for: Blade, Redfall, Deathloop, Dishonored, Prey How it’s been affected: The studio’s “management is beginning required consultation with its Works Council to review potential strategic options.” Activision Image via Activision Games it’s known for: Call of Duty, Crash Bandicoot How it’s been affected: “Reductions” and “shifting investment to focus on higher priority projects.” Blizzard Image via Blizzard Games it’s known for: Overwatch, World of Warcraft, Diablo How it’s been affected: “Reductions” and “shifting investment to focus on higher priority projects.” Bethesda/ZeniMax Image via Bethesda Games it’s known for: Fallout, The Elder Scrolls, Doom, Quake, Wolfenstein How it’s been affected: “Reductions” and “shifting investment to focus on higher priority projects.” King Image via King Games it’s known for: Candy Crush How it’s been affected: “Reductions” and “shifting investment to focus on higher priority projects.” Mojang Image via Mojang Games it’s known for: Minecraft How it’s been affected: “Reductions” and “shifting investment to focus on higher priority projects.” This article will be updated as more information about Xbox’s restructuring is revealed.0The post Every studio affected by Xbox’s ‘reset’ – July 2026 layoffs appeared first on Destructoid.