Obsidian Pivots to Fallout, AC Black Flag Resynced Reviews
Jul 8, 2026 · 13d ago
The gaming industry is reeling from the fallout of Microsoft's massive Xbox restructuring, which has forced major studio pivots and widespread layoffs. Ubisoft is preparing to launch its highly anticipated pirate remake, while Sony faces mounting pressure over its plans to phase out physical media.
Xbox Layoffs Force Obsidian to Cancel Avowed 2 for New Fallout
Microsoft's sweeping Xbox restructuring has resulted in 3,200 layoffs and forced Obsidian Entertainment to cancel multiple projects, including a planned sequel to Avowed, to begin work on a new Fallout game . The developer has reportedly lost roughly a quarter of its workforce, totaling 52 employees in California, despite progress on Avowed 2 going well prior to the cancellation . The dramatic shift comes under new Xbox boss Asha Sharma, who is pivoting resources toward established, high-priority intellectual properties .
The layoffs have devastated several other Microsoft-owned studios, including ZeniMax Online Studios, which reportedly lost half of its employees, and id Software, where 136 jobs were cut . High-profile departures include the 37-year veteran behind Xbox backwards compatibility, Ronald LaChapelle, and the lead artist responsible for designing The Elder Scrolls V: Skyrim's Khajiit and Argonian races . State filings show at least 158 ZeniMax workers in Texas were affected by the cuts .
Xbox CEO Asha Sharma defended the decisions, stating the business was "not healthy" and pointing to the previous regime under Phil Spencer for spreading the company "too thin" . Sharma claimed a healthier Xbox could have weathered the RAM crisis, but the cuts were necessary to refocus on the core business . The massive layoffs have drawn sharp criticism from union representatives at CWA Canada and even U.S. Senator Bernie Sanders, who expressed anger over both the job losses and recent Xbox Game Pass price hikes .
Assassin's Creed Black Flag Resynced Reviews Praise the Remake
Ubisoft's comprehensive remake Assassin's Creed Black Flag Resynced is earning highly positive reviews ahead of its launch on PC, PlayStation 5, and Xbox Series X/S . Built from the ground up on the Anvil engine, the remake modernizes the classic 2013 pirate adventure with significant updates to combat, parkour, and stealth .
While some critics felt conflicted about structural changes, the majority of reviews praise the stunning current-gen visual overhaul and seafaring gameplay . The title is already tracking to outperform last year's Assassin's Creed Shadows on Steam pre-release charts .
PlayStation Fans Protest Sony Decision to End Physical Game Discs
Backlash continues to mount against Sony's decision to cease manufacturing physical game discs by January 2028, with an online petition protesting the move surpassing 200,000 signatures . Prominent industry figures, including auteur Hideo Kojima and Metal Gear Solid voice actor David Hayter, have publicly voiced concerns over the loss of physical media .
Despite the outcry, industry analysts warn that Sony is unlikely to walk back the decision due to the highly lucrative nature of digital sales . The anger was palpable on social media, where Sony's first post following the announcement—promoting a new arcade stick—was flooded with over 65,000 hostile replies from fans .
Nintendo to Discontinue Switch 1 in Europe Amid Switch 2 Game Reveals
Nintendo has confirmed it will discontinue sales of the original Nintendo Switch console, including the Lite and OLED models, in Europe by mid-February 2027 . Driven by upcoming European Union Right to Repair and battery legislation, the decision will not affect sales in the rest of the world .
Developers are actively supporting the currently available Nintendo Switch 2, with Ubisoft announcing that The Crew Motorfest will launch on the platform on October 8, featuring a physical release via a Game-Key Card . Nippon Ichi Software is also bringing the classic PlayStation RPG Rhapsody: A Musical Adventure to the Switch 2 this week, and Pearl Abyss confirmed it has a playable build of Crimson Desert running on the new hardware .
Mario Kart Tour and Final Fantasy VII Ever Crisis Shutting Down
The industry-wide retreat from major mobile adaptations continues as both Nintendo and Square Enix announced upcoming service closures for their prominent smartphone titles . Nintendo will shut down Mario Kart Tour on September 30, 2026, after seven years of service, with no offline version planned for players . Square Enix is also ending service for the gacha RPG Final Fantasy VII: Ever Crisis on October 7, 2026, less than three years after its Steam debut . These closures follow a broader trend of publishers downsizing ambitious mobile operations as the market for big-IP mobile adaptations declines .
