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Xbox Layoffs Cancel Halo Project, Palworld 1.0 Spikes, Sony Sued

Jul 13, 2026 · 8d ago

The fallout from Microsoft's sweeping Xbox layoffs continues to reshape the industry, leading to the quiet cancellation of a major multiplayer project and prompting defensive statements from affected studios. At the same time, Sony is facing intense legal and retail pushback over its plans to phase out physical media, even as classic ports and massive updates dominate the charts. From sudden corporate pivots to explosive player milestones, the industry is undergoing rapid shifts.

Halo Multiplayer Project Cancelled as Xbox Layoffs Impact Obsidian and ZeniMax

Halo Studios reportedly cancels Halo multiplayer project Ekur, which had customisable Spartans and Elites and large player battlesObsidian still have "the same DNA" that went into New Vegas and KOTOR 2, The Outer Worlds 2 director insists, following chatter around layoffsEurogamerRock Paper Shotgun

Halo Studios has reportedly cancelled a multiplayer project codenamed Ekur, which was set to feature customizable Spartans and Elites in large-scale battles Eurogamer. The cancellation comes in the wake of massive Xbox layoffs last week, which have sent shockwaves through Microsoft's first-party developers EurogamerRock Paper Shotgun. At Obsidian Entertainment, which lost roughly a quarter of its staff, director Brandon Adler publicly criticized online commentators for spreading misinformation about the studio's legacy and development capabilities Rock Paper ShotgunVGCIGN.

Similarly, ZeniMax Online Studios is facing community anxiety regarding the future of The Elder Scrolls Online Pure XboxEurogamer. While the developer has insisted that the cuts are "not the end" for the MMORPG, the studio has shrunk back to the size it was a decade ago and is currently revising its content roadmap Pure XboxEurogamerPC Gamer. Separately, id Software released a statement assuring fans that despite the layoffs, they retain the necessary team to build their signature games and maintain the id Tech engine This Week in Video Games.

Sony Faces Lawsuits and Retail Backlash Over PlayStation Digital-Only Future

Here Come the Lawsuits! Sony's Physical Disc Debacle Likely to Keep Its Lawyers BusyUK Trade Body Calls PlayStation’s Digital-Only Decision “Corporate Convenience Over Consumer Choice”Push SquareThis Week in Video Games

Sony is facing mounting legal and industry pressure following its decision to cease manufacturing physical discs by 2028 Push Square. The Entertainment Retailers Association in the UK has condemned the move, calling the transition to a digital-only ecosystem a "triumph of corporate convenience over consumer choice" that strips away buyer freedoms This Week in Video GamesVGC. Consumer advocacy groups, including a Dutch organization currently suing the platform holder, argue that eliminating physical media allows Sony to monopolize pricing and control how long players can access their purchases PC Gamer.

Some analysts compare the shift to the historical death of PC disc drives, but critics argue the console market lacks the open-market competition that protects digital consumers on PC PC GamerPC Gamer. The controversy arrives as Sony's legal department is already battling multiple global lawsuits regarding its strict control over the PlayStation Store Push Square.

Palworld 1.0 Release Triggers Massive Steam Player Count Spike

Palworld sees huge surge in concurrent players after the release of Version 1.0 Palworld pulled in almost 900,000 players over the weekend, its second-highest peak ever VGCPC Gamer

Pocketpair's survival crafting hit Palworld has officially launched its Version 1.0 update, sparking a massive resurgence in player activity across PC and consoles VGCEurogamer. The game reached a weekend peak of over 855,000 concurrent players on Steam, marking its highest player count since its initial early access launch month VGCPC Gamer. The influx of players briefly pushed the title past multiplayer giants like Dota 2 on the Steam charts Eurogamer. The 1.0 patch notes detail a variety of new Pals, expanded crafting resources, and gameplay optimizations that have successfully recaptured the community's attention GamesHubGamesHub.

Games Done Quick Cancels SNK Partnership Following Community Backlash

Games Done Quick announces and then quickly cancels SNK-sponsored stream because of company's Saudi ownership"GDQ Is Committed To Supporting Human Rights & Inclusivity" - GDQ Cancels SNK-Sponsored Stream, After Significant BacklashEurogamerTime Extension

Speedrunning charity organization Games Done Quick has abruptly ended its partnership with developer and publisher SNK, cancelling a planned post-event stream celebrating the 30th anniversary of Metal Slug EurogamerGame Developer. The decision followed immediate backlash from the community regarding SNK's majority ownership by the Electronic Gaming Development Company, a subsidiary of Saudi Arabia's Mohammed bin Salman Foundation EurogamerTime Extension. Games Done Quick issued an apology, admitting they failed to conduct the proper level of sponsor review and reiterating their commitment to human rights and inclusivity Time ExtensionRock Paper Shotgun.

Octopath Traveler and Outlaws Remaster Announced for Nintendo Switch 2

Octopath Traveler 1 & 2 Announced For Switch 2 With Improved Performance And VisualsOutlaws + Handful Of Missions Is Coming To Switch 2, Free Upgrade ConfirmedNintendo LifeNintendo Life

Square Enix has announced that Octopath Traveler and Octopath Traveler 2 are coming to the Nintendo Switch 2 with enhanced visuals and improved performance, with a western release date set for October 1, 2026 Nintendo LifeGematsu. However, the publisher has drawn criticism for not offering upgrade paths for existing owners of the original Nintendo Switch versions Nintendo Life. In contrast, Atari and Nightdive Studios revealed that Outlaws + Handful of Missions: Remaster is also headed to the Nintendo Switch 2, and will feature a completely free update for current owners Nintendo Life.