Undead Labs Faces Xbox Axe, Cyberpunk Edgerunners Season 2 Dated
Jun 29, 2026 · 22d ago
The gaming industry faces another turbulent week as looming Microsoft layoffs cast a shadow over Xbox first-party studios, prompting strong pushback from unionized developers. Major announcements from Evo 2026 and Netflix have given players plenty to look forward to, even as hardware manufacturers brace for rising component costs.
Undead Labs Faces Potential Sale Amid Looming Xbox Layoffs
State of Decay 3 developer Undead Labs is reportedly fighting for funding and searching for an external buyer as Microsoft prepares another massive round of layoffs across its gaming division . The studio, which recently confirmed its upcoming sandbox survival game for the PlayStation 5, is one of four Xbox-owned teams currently seeking external investment or facing potential closure . In response to the impending cuts, unionized Xbox employees held a press conference to demand layoff protections and push back against executive failures . Reports indicate that Xbox has put some third-party Xbox Game Pass deals on hold, though the company denies any blanket plans to end funding for external titles .
Cyberpunk Edgerunners Season 2 Trailer Reveals Autumn Release
Netflix and CD Projekt Red have released the first teaser trailer for Cyberpunk: Edgerunners Season 2, confirming an autumn release window for the highly anticipated anime series . The upcoming season introduces a brand-new cast of four tech-infused characters navigating the brutal streets of Night City, with fans already spotting familiar locations from Cyberpunk 2077 in the teaser . To streamline its branding, the Polish publisher announced it is officially renaming its parent company to CD Projekt Red to match its development studio .
Marvel Tokon Fighting Souls Reveals Final Roster and Open Beta
Developer Arc System Works and publisher Marvel Games unveiled the final three playable characters for Marvel Tōkon: Fighting Souls during Evo 2026 . Blade, Loki, and Deadpool will round out the launch roster as part of the "Samurai Outriders" team, with Deadpool already making waves for performing a comedic, PlayStation-referencing move during gameplay . The four-versus-four tag fighter is scheduled to launch on PlayStation 5 and PC in less than two months, with an open beta test planned to go live soon .
Sony Hints at Portable PlayStation 6 as Manufacturing Costs Rise
Sony Interactive Entertainment CEO Hideaki Nishino has hinted that the next-generation PlayStation 6 will offer experiences that extend "beyond the living room," fueling speculation about a dedicated handheld companion . While Sony aims to avoid selling hardware at significant losses, industry insiders suggest the PlayStation 6 could cost up to $1,000 to manufacture due to soaring global component prices . These rising costs are already impacting current hardware, with Nintendo recently raising the price of the Nintendo Switch 2 in South Korea, and Xbox warning that console storage and memory prices could double by 2027 .
Splatoon Raiders Nintendo Direct Scheduled for June 30
Nintendo has announced a dedicated Splatoon Raiders Nintendo Direct presentation to showcase the upcoming single-player spin-off for the Nintendo Switch 2 . The 15-minute broadcast will be immediately followed by a 30-minute Nintendo Treehouse: Live gameplay demonstration . This announcement comes as the physical release of Star Fox on Nintendo Switch 2 topped the UK boxed charts, proving strong early demand for the newly launched console .
