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Xbox Layoffs Threaten Arkane, Rockstar Union, Splatoon Raiders

Jun 30, 2026 · 21d ago

The gaming industry is bracing for a massive wave of restructuring as Microsoft prepares for a major reset of its Xbox business. Amidst the corporate anxiety, developers at Rockstar Games are organizing for union recognition ahead of their biggest launch, while Nintendo offers a brighter outlook with a fresh look at its next major spin-off.

Xbox Layoffs Threaten Arkane Studios and Undead Labs as Project Fantasy Loses Funding

The Verge: Microsoft weighing Arkane Studios closure, Marvel’s Blade cancelationMarvel's Blade Reportedly In Danger As Xbox Considers Shutting Arkane StudiosGematsuPure Xbox

Microsoft is reportedly preparing a massive wave of layoffs and studio closures as its fiscal year comes to an end GematsuPush Square. Sources indicate that Dishonored developer Arkane Studios is facing potential closure, with Microsoft looking to cancel the upcoming Marvel's Blade Pure XboxVGCPush SquareIGN. Reports also suggest that State of Decay 3 developer Undead Labs is at risk of closure, despite the game recently appearing at the Xbox Games Showcase IGNEurogamer.

The fallout of this business reset is already impacting external partners. IO Interactive, the developer behind Hitman and 007 First Light, announced layoffs after Microsoft pulled out of publishing its online fantasy RPG, Project Fantasy Game DeveloperThe VergeRock Paper ShotgunIGN. While Xbox claims it is not reducing its overall investment in games, unionized Xbox workers represented by the CWA are publicly demanding layoff protections, stating they will not be treated as disposable Pure XboxVGCVGCGamesIndustry.biz.

Rockstar Games Workers Push for Union Recognition Ahead of Grand Theft Auto VI Launch

GTA 6 Developers Ask Rockstar for Union Recognition — and They're Prepared to Go to the UK Government if NecessaryRockstar workers push to unionize ahead of GTA VI’s launchIGNThe Verge

Developers at Rockstar Games have officially applied for voluntary recognition of the IWGB Game Workers Union in the UK IGNThe Verge. The push comes ahead of the highly anticipated November 19 release of Grand Theft Auto VI and follows controversial staff firings last year The VergeEurogamer. If recognized, it would become only the second recognized union in the UK games industry IGNThis Week in Video Games.

Marketing for the blockbuster sequel is ramping up, with Rockstar and Sony officially declaring that Grand Theft Auto VI "plays best on PS5" Push SquareVGC. Pre-orders for the game have already propelled it to the top of the PlayStation Store charts in almost every country worldwide EurogamerPush Square.

Nintendo Direct Reveals Splatoon Raiders as a Single-Player Roguelite Spin-Off

Splatoon Raiders Direct details enemies, weapons, tanks, customization, upgrades, and moreSplatoon Raiders Preview: Turns Out It’s Kind of a RogueliteGematsuIGN

Nintendo has shared extensive new details for Splatoon Raiders, an upcoming single-player action-shooter spin-off, during a dedicated Nintendo Direct broadcast GematsuNintendo Life. In a surprise twist, the game is structured as a roguelite, blending the franchise's signature ink-splatting mechanics with randomized runs, weapon upgrades, and deep character customization GematsuIGN. Early previews praise the title for offering a robust, standalone single-player experience that accommodates both beginners and series veterans VGCNintendo Life.

California Protect Our Games Act Fails Senate Vote After Controversial ESA Testimony

Stop Killing Games Suffers Blow as Protect Our Games Act Fails to Pass California Senate Vote"We were only three votes away": Stop Killing Games-backed California bill to keep online games playable fails to win over senate committeeThis Week in Video GamesRock Paper Shotgun

The California Protect Our Games Act, a bill aimed at forcing publishers to keep online games playable after official server shutdowns, has failed to pass a state Senate committee vote This Week in Video GamesGamingOnLinuxRock Paper Shotgun. Backed by the global "Stop Killing Games" campaign, the bill fell just three votes short of advancing Rock Paper Shotgun.

The hearing drew intense criticism after an Entertainment Software Association (ESA) lobbyist claimed that private, community-run servers—such as those used for Minecraft—are "illegal" and constitute "piracy" IGNThis Week in Video GamesPC Gamer. The ESA has since attempted to walk back those statements following widespread backlash from the gaming community TechRaptor.