Former BioWare developers revealed that the studio removed a flag resembling a Pride flag from a demo presented to new EA leadership following the company’s acquisition by a consortium including Saudi Arabia’s Public Inv…
#Layoffs & studio closures
This week in Layoffs & studio closures · updated Fri Oct 23 2026
The game industry continues navigating workforce instability, with mixed outcomes across studios. Bit Reactor has recalled over half its furloughed staff following Star Wars Zero Company's launch, though some employees remain unpaid. Conversely, Gravity Well terminated the majority of its team after losing summer funding, leaving only a skeleton crew and uncertain prospects. Ninja Theory implemented layoffs following failed acquisition attempts by Xbox, impacting multiple departments. Meanwhile, veteran AAA developers are transitioning to independent studios, reflecting broader industry challenges that have accumulated over 58,000 layoffs since 2022. Additionally, British developer Nerial ceased operations after 13 years, while mobile title The New Denpa Men announced its December shutdown.
AI-written weekly briefing drawn from this topic's recent stories.
Industry · Open in You Don't Know Games · RSS
BioWare Developers Removed Pride-Inspired Flag from Demo to Avoid EA Backlash
The Emotional Toll of Delivering Layoffs in the Game Industry
A firsthand account from video game professionals who have been tasked with informing colleagues they are being laid off reveals deep psychological strain and moral conflict. Despite corporate detachment, these managers …
Microsoft Announces Massive Layoff Plan, Offering Redundancy to Up to 60,000 Employees
Microsoft has offered redundancy to approximately one-quarter of its global workforce, potentially affecting up to 60,000 employees. The move is part of a broader restructuring effort to streamline operations and improve…
Sucker Punch Cuts 24 Staff Despite Success of Ghost Of Yotei
Sucker Punch, developer of the critically acclaimed and commercially successful Ghost Of Yotei, has laid off 24 employees despite the game's strong sales and positive reception. The studio cited market challenges and fut…
Beyond the Headlines: How Laid-Off Games Journalists Are Rebuilding Their Careers
A feature exploring the post-layoff journeys of former video games journalists, highlighting how the collapse of media roles has forced many to pivot entirely to new careers. Despite the emotional toll, several former wr…
Skydance Mandates Full-Time Office Returns Amid Headcount Reduction Efforts
Skydance has implemented a mandatory five-day-a-week return-to-office policy across all divisions, including games and comics, as part of a broader strategy to reduce staff without formally labeling it as layoffs. The co…
Microsoft Launches Voluntary Buyout Program for 60,000 Employees Across Key Markets
Microsoft is offering voluntary buyouts to approximately 60,000 employees in the U.S., Canada, India, and the U.K., representing about a quarter of its global workforce. The move follows earlier cost-cutting efforts, inc…
Sucker Punch lays off over 20 employees ahead of new project development
Sucker Punch Productions has reportedly laid off more than two dozen employees as the studio restructures ahead of its next major project. Management cited the need for a leaner team to focus on future development goals.…
Auroch Digital Downsizes Staff by 25% Amid Industry-Wide Challenges
Auroch Digital has initiated a redundancy process affecting roughly a quarter of its workforce, citing ongoing market pressures that have impacted even successful studios. Despite recent acclaimed releases like Warhammer…
Xbox's first COO Helen Chiang departs after brief tenure amid leadership restructuring
Helen Chiang has left Microsoft just three months after being appointed as Xbox's first chief operating officer, ending a 21-year tenure at the company. Her departure was announced by CEO Asha Sharma, though Microsoft ha…
Weekly podcast examines BioWare shutdown, Supercell-Metacore deal, and Mika Games funding
The 107th Week in Mobile Games podcast features Mariam Ahmad and Aaron Aastle discussing recent industry news. They cover EA's decision to close BioWare after 30 years, cancel a new Mass Effect, and cut around 400 jobs, …
Electronic Arts ends BioWare's three-decade run
Electronic Arts is closing BioWare, the developer known for Mass Effect and Dragon Age, after about 30 years. The move is reportedly tied to layoffs affecting 400 employees, with roughly 50 of those being the studio's re…
Ubisoft Proposes Voluntary Departures Across Three German Studios
Ubisoft is planning to cut about 100 roles across its Dusseldorf, Berlin, and Mainz studios in Germany. The company has begun talks with the Works Council about a voluntary departure plan and hopes buyouts will prevent l…
EA shuts BioWare and eliminates 400 positions
EA is cutting about 400 jobs, or 3% of its workforce, and closing BioWare. The company also canceled a new Mass Effect, paused development of a Sims project, and downsized the Skate team. EA described the changes as alig…
BioWare's shutdown reflects a familiar pattern of mismanagement, opinion argues
The opinion piece examines BioWare's shutdown by Electronic Arts after the company went private under private equity ownership. It notes that roughly 400 roles were cut across EA and that the studio's in-progress Mass Ef…
Undead Labs leadership avoids disclosing layoff figures following Xbox independence transition
Following Undead Labs' transition to employee ownership and independence from Xbox, studio head Philip Holt declined to publicly disclose how many staff members were affected by restructuring efforts. Holt emphasized his…
Ubisoft Shuts Down Rainbow Six Mobile After Disappointing Performance
Ubisoft announced the closure of Rainbow Six Mobile, with the final season launching next week and servers remaining active until mid-January 2027. The game generated approximately $5.3 million in in-app purchase revenue…
Bit Reactor Rehires Majority of Staff After Star Wars Game Launch Stabilizes
Bit Reactor has begun recalling employees it had furloughed before the launch of Star Wars Zero Company, with over half of the pre-furlough workforce now returning to payroll. The studio's CEO characterized the initial f…
Respawn-Founded Studio Gravity Well Cuts Majority of Staff After Funding Collapse
Gravity Well, an independent studio established by former Respawn Entertainment leaders, has terminated over 40 employees following the loss of its funding this summer. The three founders stated that the team was informe…
Bit Reactor Recalls Majority of Suspended Employees Following Star Wars Zero Launch
Bit Reactor, the developer behind the tactical Star Wars title, is rehiring more than half of the staff members it had furloughed prior to the game's release. The studio had suspended a large portion of its workforce in …
Bit Reactor begins recalling furloughed staff after summer layoffs
Bit Reactor has started bringing back portions of its workforce after furloughing most of the development team ahead of Star Wars Zero Company's launch in summer 2026. According to sources, the recalled staff now represe…
The New Denpa Men Mobile Game Shutting Down This December
The New Denpa Men will cease operations on December 7, 2026, with developers citing the inability to maintain service quality that meets player expectations. Sales of in-game currency and items halted on October 5th, tho…
Ninja Theory implements workforce reductions following failed acquisition attempts
Ninja Theory has initiated layoffs affecting multiple staff members, including gameplay programmers, technical directors, and sound designers with varying tenures at the studio. The layoffs follow Xbox's September announ…
British studio Nerial ceases operations following 13-year run and 11 releases
Nerial, the British developer behind the Reigns franchise, has announced it is ending development and entering hibernation mode after 13 years of operation. The studio made the decision jointly with its publisher Devolve…
Veteran AAA developers transition to independent studios amid industry instability
Former AAA studio heads including those from Player First Games and other major publishers are establishing independent development teams as an alternative to the unstable AAA employment landscape. The move reflects broa…
Nerial, the studio behind Reigns, is shutting down after 13 years
Nerial, the developer of the Reigns series, is closing after 13 years and 11 published games. Devolver Digital and Nerial jointly decided to end development at the studio, leaving around eight staff, including the founde…
Nintendo ends Mario Kart Tour after seven-year run
Nintendo has shut down Mario Kart Tour, ending the mobile racer's service after almost seven years. AppMagic estimates put its lifetime downloads above 276 million and in-app purchase revenue at about $268.5 million, wit…
Gameloft to sunset Minion Rush in 2027
Gameloft plans to remove Minion Rush from app stores and stop in-app purchases on October 30, then shut down its servers on January 29, 2027. Players who already own the title can keep playing until the shutdown and use …
Microsoft Chief Praises Xbox Overhaul While Seeking Sustainable Growth
Microsoft CEO Satya Nadella said in a podcast interview that Xbox's streamlining under CEO Asha Sharma was a positive development. His comments followed layoffs that affected hundreds of Xbox employees and major franchis…
Weekly digest weighs Xbox overhaul and AppLovin studio deals
PocketGamer.biz's weekly digest discusses Xbox's ongoing restructuring, including 268 job cuts and the movement of studios under different publishing groups. It also notes that Undead Labs became independent but still la…
Xbox's restructuring continues without a clear finish line
Asha Sharma, Xbox's CEO, described her second hundred days as a reset for the business after her first hundred days ended. The reorganization has already brought hundreds of job losses and the closure or divestment of mu…
Build a Rocket Boy Appoints Administrators Amid Shutdown Fears
Build a Rocket Boy has appointed administrators through a UK government filing dated September 25, following another round of layoffs roughly a week earlier. The administrators will assess whether the studio can be sold,…
MindsEye studio enters administration after insolvency filing
The developer behind MindsEye has formally entered administration, a process indicating insolvency and protection from creditor legal action. The company reported a £47.5 million operating loss for the year ending Septem…
Microsoft's Layoffs and Halo Studio Demotion Reveal a Chaotic Strategy
Microsoft has laid off another 268 employees, months after cutting 1,600, with Halo Studios reduced to a support role and Activision taking over the franchise. Employees at affected studios describe ongoing chaos and a l…
Xbox restructures: Halo development moves to Activision amid layoffs and studio uncertainty
Microsoft has laid off 268 workers, mostly at Halo Studios, as part of a previously announced reduction of 3,200 positions. The company is moving development of the next Halo game to Activision, while Halo Studios will s…
World's Edge loses nearly half its staff in post-transfer cuts
World's Edge, the studio behind Age of Empires, has laid off nearly half its workforce following its transfer to Activision. Former creative director Adam Isgreen confirmed the cuts, expressing disappointment over the lo…
Complexity Founder Breaks Silence on Shutdown, Vows to Stay in Esports
Jason Lake confirmed the permanent closure of Complexity, citing insurmountable financial problems including a $9.61 million seller-financed debt from reacquiring the company in 2024. He said the decision was made to win…