Xbox Layoffs Spark Protests, Glen Schofield Retires, AC Strike
Jul 15, 2026 · 6d ago
The video game industry is facing a turbulent week of labor unrest and major executive departures. While massive blockbusters continue to break sales records, developers are pushing back against sudden layoffs with physical and digital protests. At the same time, a legendary horror director is stepping away from the medium after more than three decades.
Xbox Layoffs Trigger Union Rallies and In-Game Fallout Protests
A wave of unrest is sweeping through Microsoft's gaming division following the decision to lay off approximately 1,600 workers and close multiple studios . Unionized employees represented by the Communications Workers of America are staging coordinated rallies outside the offices of Bethesda Game Studios, ZeniMax, and id Software to protest the cutting of over 400 union-represented roles . In solidarity, modders have begun flooding Fallout 4 and The Elder Scrolls V: Skyrim with union logos and protest signs .
Internal reports paint a grim picture of the current environment at Xbox, with remaining staff describing a culture of secrecy, confusion, and a devastating loss of institutional knowledge . Amidst the fallout, South of Midnight developer Compulsion Games has transitioned into an independent studio after parting ways with Xbox Game Studios . The Montreal-based developer is now actively seeking external collaborations and support work with other entertainment companies to sustain its operations .
Dead Space Co-Creator Glen Schofield Announces Retirement
Industry veteran Glen Schofield has officially announced his retirement from day-to-day game development after a storied 35-year career . Schofield, who served as the general manager of Visceral Games and co-founded Sledgehammer Games, is best known for directing the original Dead Space, Gex: Enter the Gecko, and multiple Call of Duty titles . His final project was the 2022 sci-fi horror game The Callisto Protocol . Reflecting on his career in a video message, Schofield expressed gratitude for having a front-row seat to one of the greatest creative explosions in history .
Assassin's Creed Black Flag Resynced Hits 2 Million Sales Amid Studio Strike
Ubisoft's remastered pirate adventure, Assassin's Creed Black Flag Resynced, has enjoyed a massive launch, selling over two million copies on its first day and setting a franchise record on Steam . However, the commercial success has been overshadowed by labor disputes at co-developer Ubisoft Barcelona . Workers at the Spanish studio have initiated a three-day strike to protest ongoing layoffs implemented by the publisher despite the game's strong financial performance . Developers also revealed that certain iconic combat mechanics from the original game were omitted from the remaster simply because they were deemed lower priority during production .
FromSoftware Confirms The Duskbloods Closed Network Test Dates
FromSoftware has officially announced the schedule for its highly anticipated PvPvE multiplayer action game, The Duskbloods . A closed network test is scheduled to run from August 21 to August 23 on the Nintendo Switch 2, giving players their first hands-on experience with the title . Sign-ups for the limited playtest will open next week, though entry is expected to be highly competitive . The announcement follows the game's initial reveal during June's Nintendo Direct broadcast .
Denshattack Launches on Xbox Game Pass as Tony Hawk is Pulled
Subscribers to Xbox Game Pass received a mix of news today as the service updated its library. The train-skateboarding arcade game Denshattack! has launched as a day-one title on Xbox Series X, Xbox Series S, and PC, earning highly positive reviews for its energetic gameplay and technical performance . However, Microsoft has abruptly pulled Tony Hawk's Pro Skater 1+2 from the July lineup without explanation, just days before its scheduled July 21 release .
