Xbox Layoffs Spark Protests, Steam Hits $11B, Palworld 1.0 Launches
Jul 10, 2026 · 11d ago
The fallout from Microsoft's sweeping Xbox layoffs continues to reverberate across the industry, sparking union protests and sharp criticism from industry veterans. At the same time, Valve's PC storefront is celebrating unprecedented financial success, and major releases like Palworld and Assassin's Creed Black Flag Resynced are hitting major milestones amid player backlash.
Bethesda Union Protests Xbox Layoffs as CEO Asha Sharma Joins Federal Reserve
Microsoft's decision to lay off 1,600 employees across its gaming division has triggered widespread industry backlash and union action . Members of the Bethesda Game Studios union, OneBGS, have announced plans to march in protest of the sweeping cuts, declaring they will not quietly disappear . The layoffs have reportedly had a crushing effect on morale for developers working on The Elder Scrolls VI, who now express fears of delays, crunch, and being replaced by cheaper contract labor .
Adding to the controversy, Xbox CEO Asha Sharma has been appointed by the United States Federal Reserve to co-lead its new Productivity and Jobs task force . The appointment, which came just days after Sharma oversaw the restructuring that eliminated thousands of Xbox jobs, has drawn intense scrutiny from the gaming community and industry observers .
Legendary programmer and id Software co-founder John Carmack also spoke out regarding the layoffs, which reportedly cut the DOOM: The Dark Ages developer's staff in half . Carmack admitted his previous optimism about Microsoft's stewardship of the brand has not aged well, though Xbox later issued a statement claiming dozens of employees are still actively working on the id Tech engine .
Steam Generates Record $11.1 Billion in Revenue as Steam Machine Verification Begins
While console platforms face turbulent times, Valve's PC storefront Steam has recorded its most successful first half of a year in history, generating an estimated $11.1 billion in gross revenue . This massive figure surpasses Steam's performance during the game-heavy end of last year, driven in part by massive releases like Playground Games' Forza Horizon 6, which has reportedly generated $197.7 million on the platform alone .
Alongside this financial milestone, Valve has quietly rolled out Steam Machine compatibility ratings directly onto game store pages . However, the new verification system has faced early criticism for remaining silent on several demanding "Steam Deck-buster" titles that are too taxing for the portable hardware but remain unrated for the new console .
Assassin's Creed Black Flag Resynced Hits Steam Amid Microtransaction Backlash and Layoffs
Ubisoft's newly launched remake, Assassin's Creed Black Flag Resynced, has enjoyed strong initial financial success, pulling in roughly $14 million in gross revenue before its official launch . Despite these strong sales, the game is currently being review bombed on Steam by players frustrated with the inclusion of single-player microtransactions and day-one DLC . Ubisoft has defended the release, insisting that the standard edition offers the full, complete experience without requiring additional purchases .
The launch has also been overshadowed by layoffs at co-developer Ubisoft Barcelona, where 51 employees have been let go . While Ubisoft claims these cuts were planned well in advance of the remake's arrival, the timing has drawn criticism as the studio celebrates a highly successful launch window .
Palworld 1.0 Launches on PC and Xbox Game Pass with Massive Content Update
Pocketpair has officially brought its hit survival game Palworld out of Early Access with the launch of version 1.0 on PC and Xbox Game Pass . The massive update introduces a wealth of new content, though the developer has warned players that they must completely delete old mods to prevent game-breaking compatibility issues . Early reviews of the 1.0 release indicate that the update successfully addresses major player feedback and delivers substantial gameplay improvements .
