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
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The brief
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.
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Quick answers
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.
Coverage (4)
- Report: Multiple Xbox game studio heads negotiating with Xbox to avoid closure GameDev.net · 5h 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+ · 5h ago
- Obsidian Reportedly Set to Lose a Quarter of Its Staff Amid Xbox Layoffs IGN · 5h ago
- Xbox layoffs reportedly gut Id Software’s coding team and cut 60-70 developers from Obsidian Video Games Chronicle · 5h ago
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