Insider Shares Big Tidbits of Information About Latest Xbox Layoffs - Power Up Gaming
▲ 536 r/Gamingnewsandleaks+2 crossposts

Insider Shares Big Tidbits of Information About Latest Xbox Layoffs - Power Up Gaming

Basically, according to Stephen Totilo's sources:

- Undead Labs' new owner is not obligated to release State of Decay 3 on Game Pass at launch, even though Xbox is still funding it

- Owners for Undead Labs and Ninja Theory should be revealed later this year (Undead Labs' owner sometime in the summer)

- Third-party funding for Game Pass has NOT been cut

- Platform team has been significantly downsized to reduce "bloat"

- Asha Sharma thinks Microsoft has massively underinvested into Minecraft

powerupgaming.co.uk
u/Blue_Sheepz — 14 hours ago
▲ 1.6k r/xbox

Jez Corden: Microsoft is evaluating whether to include a disc drive in Project Helix

He says that things had previously been decided for Project Helix when it comes to including a disc drive in it, but according to his and Tom Warren's sources, this is now under consideration again.

>The latest information that I have is that Helix was never planned to have a disc drive. . . Things had been decided for Helix previously. However, Tom Warren had more up-to-date information, and they're now seeing what might be possible with Helix with regards to discs.

>I went and tried to update my information and it does seem like indeed they are trying to figure out what they can do here before they can fully commit to the death of physical

youtube.com
u/Blue_Sheepz — 3 days ago
▲ 727 r/xbox

Jez Corden says Microsoft is already lining up buyers for Xbox studios

"I've heard that Microsoft has lined up buyers for some of these studios already. But things are moving very fast, and things are in flux."

"I heard one rumour that one studio had gotten a buyer, and then that deal fell through because they didn't like Microsoft's terms, and then they found a new buyer."

"I've had that Microsoft management team, and their executives are flying [...] all over the world to try and save these studios."

It will be a PR disaster if they cancel State of Decay.

"So from what I've heard, the plan is if they can't find a buyer, they'll try and see those studios through to complete in what has been announced."

"The best-case scenario is some of these studios do find a buyer, but there are some of the studios that could either go there, could be independent, they could be bought out by the individuals who sold the company originally."

"We're going to see it from next week. We're going to see a combination of studios going independent, studios being sold to the publishers, and then potentially some smaller studios potentially being closed. But then I would expect also head counts across the board. I think every studio is going to have layoffs, at least some layoffs."

x.com
u/Blue_Sheepz — 4 days ago

The Game Business: Asha Sharma has brought a "start-up mentality" to Xbox

>February-appointed Xbox CEO Asha Sharma has brought a “start-up mentality” into the organization, asking teams that are used to weeks of planning and countless meetings to turn things around in days to hours.

>The announcement of Xbox Series price increases last week was reportedly thrown together the same day, after Apple announced its own price increases.

>Certain Xbox studio heads also feel Sharma is listening too much to consultants rather than the developers making the games.

>Numerous people within Xbox who spoke privately to The Game Business feel there is too much “listening to Twitter” happening at Xbox, questioning the organization’s reinvestment in hardware amid an ongoing component crisis and a declining console market, and doubting the impact of an exclusive Gears of War: E-Day on hardware sales.

>“We’re chasing a declining market with franchises that are past their prime,” said one studio boss.

>Another studio boss, when asked about Xbox’s recent decisions, shrugged and said, “After Activision, this is Amy [Hood] and Satya [Nadella]’s Xbox now.”

Source: https://www.gematsu.com/2026/07/the-game-business-obsidian-entertainment-among-xbox-studios-negotiating-to-avoid-closure

u/Blue_Sheepz — 5 days ago
▲ 93 r/xbox

Elias Toufexis comments on Marvel's Blade cancellation rumors

Not sure if this means much, but he says that people shouldn't listen to rumors.

xcancel.com
u/Blue_Sheepz — 6 days ago

Jason Schreier: Xbox Pulls Out of Project Fantasy Video Game from IO Interactive

Some interesting tidbits here:

>Xbox is “taking a fresh look at where we invest so we’re focusing on our highest priorities,” a spokesperson said in a statement to Bloomberg News.

>“We're not reducing our overall investment in games,” the spokesperson said. “We expect to invest about the same in content as we did last year. What's changing is where we're investing and the kinds of projects we're backing.”

Gifted link: https://www.bloomberg.com/news/articles/2026-06-30/microsoft-s-xbox-pulls-out-of-project-fantasy-video-game-from-io-interactive?accessToken=eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJzb3VyY2UiOiJTdWJzY3JpYmVyR2lmdGVkQXJ0aWNsZSIsImlhdCI6MTc4Mjg0MTc5NiwiZXhwIjoxNzgzNDQ2NTk2LCJhcnRpY2xlSWQiOiJUSEdISUtLSVAzSUEwMCIsImJjb25uZWN0SWQiOiJCMUVBQkI5NjQ2QUM0REZFQTJBRkI4MjI1MzgyQTJFQSJ9.\_X7fWJXMkER0LX8wjbPlqWJNXJqjEfaYkVxpStwD114

u/Blue_Sheepz — 6 days ago
▲ 294 r/gaming

Jez Corden alleges that the team behind Luna Abyss got laid off because the game got funding from a sanctioned country

On the Xbox Two podcast, he said this:

​

“Well… the whole Luna Abyss thing, I heard the industry scuttlebutt about Luna Abyss is that some of the money that was invested in that studio came from a country that has been sanctioned, so the creditors couldn’t get the money they were owed. . . All of the Game Pass funds for that game went straight to the creditors, and that’s what killed the studio.”

​

Source of transcripted text: https://powerupgaming.co.uk/2026/06/19/new-rumour-reveals-why-team-behind-luna-abyss-was-laid-off/

u/Blue_Sheepz — 18 days ago
▲ 595 r/xbox

Insider Denies Gears of War: E-Day's $400 Million Budget Rumour

This is according to Jez Corden.

From the article:

>In the latest episode of the Xbox Two podcast, Windows Central’s Jez Corden bluntly states that Gears of War: E-Day as a whole “didn’t cost $400 million.” He later goes on to say that The Coalition, the developer of the game, is the “technological glue for all of Xbox.” It “doesn’t just work on games,” it works on “dev tools. . . on Unreal Engine. . . on a lot of stuff beyond simply Gears of War.”

>Corden claims that some of the money spent at The Coalition is “spread across” Xbox’s entire portfolio of games, including non-Unreal Engine titles like Forza and Fable. As such, he concludes that “you can’t really say Gears: E-Day has a $400 million budget. That’s. . . not even the case.”

powerupgaming.co.uk
u/Blue_Sheepz — 18 days ago

Halo: CE's "Captured on PS5 Pro" trailer may have been intended for the State of Play last week, but Microsoft pulled it back last minute, angering Sony

Chris Dring said in his newsletter today that “Microsoft had planned to have a game at PlayStation’s State of Play showcase, but decided against it, angering Sony”.

Dring didn't say what this game was, but Tom Warren suggested that the "‘Captured on PS5 Pro’ Halo trailer sure would have made more sense if it was originally supposed to be part of Sony’s State of Play”.

Source: https://www.pushsquare.com/news/2026/06/rumour-halo-ps5-trailer-was-planned-for-state-of-play-sony-allegedly-angered-by-removal

u/Blue_Sheepz — 28 days ago
▲ 877 r/xbox

Matthew Ball acknowledged that Xbox exclusives will sell fewer units than multiplatform ones, but "that's a short-term issue, and making these changes will help Xbox’s console business grow"

x.com
u/Blue_Sheepz — 28 days ago
▲ 1.8k r/xbox

Matthew Ball says Xbox shed “millions of subscribers” when the Gamepass price increased 50 percent in Fall 2025

x.com
u/Blue_Sheepz — 28 days ago