Xbox layoffs reportedly gut Id Software’s coding team and cut 60-70 developers from Obsidian
Microsoft’s Xbox layoffs trigger studio closures and mass departures at Obsidian and Id Software
📍 Aftermath
Microsoft implemented widespread layoffs that significantly reduced staffing levels at both Id Software and Obsidian. The story quieted without a definitive conclusion in the coverage regarding the future of the affected studios or the status of ongoing negotiations to avoid further closures.
Epilogue added 43d ago, after coverage quieted.
How fast it spread
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🌍 How it travelled
This story first appeared in 🇩🇪 German coverage — 3.7 hours before headlinez.news detected it in English news.
Detected by matching proper nouns and figures that survive translation. Times reflect when each edition's coverage was first indexed.
What happened
Microsoft’s ongoing restructuring at Xbox has reportedly led to the dissolution of Id Software’s coding team and cuts of 60–70 developers at Obsidian Entertainment, a key studio behind *The Outer Worlds* and *Pillars of Eternity*. Coverage highlights internal negotiations among Xbox studio heads to prevent further closures, with one laid-off RPG veteran describing the layoffs as part of 'Microsoft’s sacrificial rituals.' Reports from *GameDev.net*, *IGN*, *GamesRadar+*, and *Video Games Chronicle* emphasize the scale of the cuts, framing them as part of broader cost-saving measures.
Obsidian’s workforce reduction is estimated at a quarter of its staff, while Id Software’s coding team—responsible for franchises like *Doom*—has been entirely dismantled. Watch for potential project delays or cancellations at affected studios, as well as possible legal or union responses from laid-off developers.
Microsoft has not yet issued an official statement addressing the reports.
Synthesized by headlinez.news from the headlines below under a strict no-invention contract. ✓ fact-checked: unsupported claims removed (83% supported) Updated 45d ago.
Sources (11)
- Doom Developer Id Software Is Reportedly Losing Half Its Staff Engadget · 45d ago
- Bethesda, id Software reportedly hit hard by Microsoft layoffs Ars Technica · 45d ago
- Former Obsidian Dev Labels Layoffs ‘Microsoft Sacrificial Rituals’ Insider Gaming · 45d ago
- Xbox Layoffs Decimate Id Software and Obsidian TechPowerUp · 45d ago
- Obsidian Hit Hard By Xbox Layoffs, With 25% Of Devs Cut From Studio Yahoo Finance · 45d ago
- Fallout: New Vegas and Avowed dev hit hard in bloodiest week in Xbox history Polygon.com · 45d ago
- The Outer Worlds 2, Avowed Studio Hit by Layoffs, Affecting 25 Percent of Employees GamingBolt · 45d ago
- Report: Multiple Xbox game studio heads negotiating with Xbox to avoid closure GameDev.net · 45d ago
- Obsidian was also hit by "the Microsoft sacrificial rituals," says laid-off RPG veteran who previously worked on Dragon Age and Mass Effect GamesRadar+ · 45d ago
- Obsidian Reportedly Set to Lose a Quarter of Its Staff Amid Xbox Layoffs IGN · 45d ago
- Xbox layoffs reportedly gut Id Software’s coding team and cut 60-70 developers from Obsidian Video Games Chronicle · 45d ago
Questions people are asking
Which Xbox studios are most affected by these layoffs?
Id Software’s coding team has been reportedly dissolved entirely, while Obsidian Entertainment has lost 60–70 developers, roughly a quarter of its staff.
Are there any ongoing negotiations to prevent further closures?
Coverage from *GameDev.net* indicates that multiple Xbox studio heads are in discussions with Microsoft to avoid additional closures, though outcomes remain unclear.
Has Microsoft commented on these reports?
As of now, Microsoft has not issued an official statement addressing the layoffs or studio restructuring.
Topics
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