Xbox Restructuring, Grand Theft Auto VI, Studio Layoffs

Sep 22, 2026 — Oct 22, 2026

Across late September and October, studio cuts and Xbox’s reorganization define the industry backdrop, while established franchises draw attention through major reveals, updates and remasters Xbox WireGame DeveloperIGNVGC. Grand Theft Auto VI remains a central focus as Rockstar’s marketing campaign advances alongside leak threats and tighter rules for fan-made content Push SquareEurogamerEurogamer.

Xbox Layoffs Reshape Microsoft’s Studio Strategy

Continuing Our ResetBethesda boss confirms Obsidian will remain a "distinct" teamXbox WireGamesIndustry.biz

Microsoft’s latest Xbox restructuring eliminates 268 jobs and puts development of the next mainline Halo under Activision, while World’s Edge faces cuts, Ninja Theory enters consultation ahead of a proposed closure and employee-owned Undead Labs reduces staff Xbox WireEurogamerGamesIndustry.bizTechRaptor+4. Obsidian Entertainment’s reporting line moves to Bethesda, but its leadership, creative identity and existing roadmap remain in place GamesIndustry.bizEurogamer.

The cuts extend beyond Xbox: Liquid Swords files for bankruptcy after employees reportedly go unpaid for two months, Ubisoft proposes closing RedLynx and cutting positions at Ubisoft Singapore, and Supermassive Games eliminates more than 70 jobs GamesIndustry.bizPure XboxPush SquareRock Paper Shotgun+3. Xbox-related layoffs have exceeded 5,750 across three years, underscoring the scale of the restructuring Game Developer.

Further Xbox layoffs are reported as planned, with 1,868 job cuts made and 3,200 planned overall; Microsoft is also reportedly considering a modular Game Pass subscription and targeting a next-generation handheld for holiday 2027, followed by Project Helix in 2028 EurogamerPush SquarePure XboxRock Paper Shotgun+2. Those proposals leave the shape of Xbox’s workforce, subscriptions and hardware strategy in flux.

Grand Theft Auto VI Marketing Advances as Leak Threats Escalate

GTA 6: All the Major New Details Revealed Today, Including Animal Species, Side Activities, and Fast TravelGTA 6 will simulate hurricanes, rainbows and persistent, dynamic clouds, among other efforts to make you stop doing crime and become a weather nerdIGNRock Paper Shotgun

Rockstar keeps Grand Theft Auto VI scheduled for November 19, 2026, while its latest preview adds new activities, animal species and fast travel to a map described as twice the size of Grand Theft Auto V’s IGNPush SquareVGC. The preview also highlights localized weather, including persistent rain, tropical storms and hurricanes, while the marketing campaign brings game-inspired cars to Miami Rock Paper ShotgunIGNPush SquareIGN.

The marketing push unfolds alongside reports that a group identifying itself as CyberLeek threatened to publish an alleged full playable build after footage attributed to the group circulated online EurogamerVGCGamesIndustry.biz. Rockstar also tightens restrictions on unofficial story expansions, combined maps, unauthorized ports and projects using third-party intellectual property EurogamerIGNRock Paper Shotgun.

A reported PC release in the first quarter of 2027 remains unconfirmed by Rockstar, while the announced release date remains November 19, 2026 GematsuEurogamerVGC. The game’s approach to launch is therefore defined both by a growing official campaign and an ongoing effort to control unofficial material.

Game Studios Take Divergent Approaches to Generative AI

Jagex pull Runescape trailer and apologise for genAI use after complaints about six-fingered knights, pinning the blame on a "trusted external partner"Sega claims it’s being ‘very cautious’ about AI and won’t use it for creative workRock Paper ShotgunVGC

Jagex pulls a RuneScape 3 trailer after complaints about generative-AI imagery, saying an external partner used the art without the studio’s knowledge and breached its anti-AI rule Rock Paper ShotgunVGC. Sega says it will not use AI for creative aspects of game development, while Capcom plans to evolve RE Engine into an AI-generation game engine VGCPush SquareThe VergeEurogamer.

Epic Games reportedly delays an unannounced shooter featuring Marvel and Star Wars characters while directing developers toward an AI-first approach to generated code and art The VergeRock Paper ShotgunEurogamer. The debate also affects how games reach audiences: Sega temporarily removes Total War: Shogun 2 - Complete Edition amid AI-use accusations, and indie developers restrict public demos over concerns about AI-assisted copying EurogamerEurogamerRock Paper ShotgunGame Developer+1.

Bungie Restores Destiny 2 Content as Shooters Broaden Their Formats

Bungie Restoring Destiny 2 Vaulted Content And Teases New ContentBungie Says More Destiny Is Coming, Months After Ending Support for Destiny 2TechRaptorIGN

Bungie plans to restore vaulted Destiny 2 campaigns, destinations and raids, including content from the game’s first four years, saying the material “never should have been ripped away” TechRaptorPush SquareGematsu. The reversal follows the end of ongoing Destiny 2 support and comes as Bungie acknowledges that Marathon has not attracted as many players as hoped IGNEurogamer.

Marathon is set to retain its competitive PvPvP mode while adding lower-intensity options, a social hub and a new area called Perimeter EurogamerIGNRock Paper Shotgun. Embark Studios also tests an opt-in PvE mode for Arc Raiders, allowing players to face hostile machines without damaging one another Rock Paper ShotgunEurogamer. Both games’ changes point to continued experimentation with how extraction shooters balance competition and cooperation.

The Witcher 3, Zelda and Cyberpunk 2077 Extend Major Franchises

All versions of The Witcher 3 "that exist in the world" will be upgraded with the free Remastered edition todayThe Witcher 3 hits its highest-ever Steam concurrent player count following Remastered launchEurogamerGamesIndustry.biz

The Witcher 3: Wild Hunt Remastered arrives on PlayStation 5, Xbox Series X|S, PC and Nintendo Switch 2 as a free upgrade for existing owners, with more than 70 changes across visuals, gameplay and accessibility EurogamerPure XboxNintendo LifePure Xbox. The update sets a new Steam concurrent-player record for the game, although players also report performance, audio and lighting issues GamesIndustry.bizEurogamerThis Week in Video Games.

Nintendo’s The Legend of Zelda: Ocarina of Time remake launches on Nintendo Switch 2 on November 5, with previews showing redesigned puzzles, updated controls and new dialogue Nintendo LifeIGNIGN. CD Projekt Red’s Cyberpunk 2077 update 2.5 is scheduled for October 22 on PlayStation 5, Nintendo Switch 2 and Xbox, adding cross-platform mod support alongside new combat and customization features Rock Paper ShotgunThe VergeEurogamer.

Jagex announces RuneScape 4, a new MMO built in Unreal Engine with no release date, while RuneScape Reignited is scheduled for December 2 This Week in Video GamesIGNTechRaptorRock Paper Shotgun+2. The franchise plans range from near-term remasters and updates to projects still years from release.

End of the monthly overview · 5 stories from 14 outlets