Xbox reportedly set to lay off hundreds and 'consolidate' game studios, RPS reports

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Rock Paper Shotgun reports that The Information (via VGC) says Microsoft-owned Xbox is set to lay off "hundreds" of staff and to "consolidate" several game studios in a second round of cuts this week. RPS notes The Information hinted at potential mergers or movement across Xbox Game Studios, Bethesda, Activision, and Blizzard but provided no concrete plan for that consolidation. The article recalls that Xbox previously cut around 1,600 people and parted ways with several studios in July. Bloomberg reporter Jason Schreier told the 8-4 Play podcast on Sept. 18 that cuts at Blizzard are "coming and imminent," according to RPS.

What changed

Rock Paper Shotgun reports that The Information (via VGC) says Microsoft-owned Xbox will once again reduce staff by "hundreds" and "consolidate" several game studios in a second round of cuts scheduled for this week.

Timeline

  • Back in July, RPS reports Xbox cut around 1,600 people and parted ways with several studios.
  • Bloomberg reporter Jason Schreier said on the 8-4 Play podcast (published Sept. 18) that cuts at Blizzard are "coming and imminent," as noted by RPS.
  • Rock Paper Shotgun published the report on Sept. 22, 2026, relaying The Information's claims (via VGC) about new layoffs and consolidation occurring this week.

Limits

  • RPS reports The Information's claims but says there is no concrete indication of which studios will be merged or exactly how consolidation would be implemented.
  • Exact headcount, the specific studios affected, and firm dates beyond the report's "this week" claim are not confirmed in the cited reporting.