Xbox Spin-Off Rumors, Zelda Ocarina of Time Remake Announced
Jun 7, 2026 — Jun 14, 2026 · 1mo ago
The gaming industry is undergoing a seismic shift as Microsoft grapples with a massive structural reset that could redefine the Xbox brand forever. Meanwhile, Nintendo is capitalizing on its newly launched Nintendo Switch 2 console with blockbuster announcements, even as developers scramble to avoid the looming shadow of Grand Theft Auto VI.
Microsoft Considers Xbox Spin-Off and Layoffs in Major Business Reset
Microsoft is reportedly evaluating a plan to spin off its Xbox gaming division into a wholly-owned subsidiary to ensure long-term sustainability after 25 years of investment . Under the leadership of newly appointed Xbox CEO Asha Sharma and Xbox Game Studios head Matt Booty, the company is preparing for a "business reset" that includes significant layoffs scheduled for July 2026 . This drastic restructuring comes amid a severe hardware components crisis, rising manufacturing costs, and the loss of "millions" of Xbox Game Pass subscribers following the October 2025 price hike .
To stabilize the business, Microsoft is reevaluating its next-generation Project Helix console and fast-tracking development on major franchises like Halo, Fallout, and The Elder Scrolls . The publisher is also shifting its exclusivity strategy, limiting permanent console exclusivity to select titles like Gears of War: E-Day and Clockwork Revolution, while bringing other legacy IPs to competing platforms . In a historic move, Microsoft debuted a PlayStation 5 Pro gameplay trailer for its Halo: Campaign Evolved remake, which will launch day-and-date on PS5, Xbox Series X/S, and PC . Meanwhile, Ninja Theory has cancelled Project Mara to focus entirely on the Hellblade franchise, including a new action-adventure game titled Senua slated for 2027 .
Zelda Ocarina of Time Remake and Xenoblade Genesis Lead Nintendo Switch 2 Lineup
Nintendo dominated the summer showcase season with a massive Nintendo Direct, officially announcing a high-fidelity remake of The Legend of Zelda: Ocarina of Time for the Nintendo Switch 2 launching later this year . Developer Monolith Soft also unveiled Xenoblade Genesis, a brand-new entry slated for 2027, alongside upgraded 4K, 60fps Switch 2 Editions of the original Xenoblade trilogy . To ensure actual players can access the newly launched console, Nintendo has implemented strict anti-scalping measures in Japan, requiring customers to prove they have registered at least 50 hours of playtime on the original Nintendo Switch before purchasing a Switch 2 .
The presentation also featured the long-awaited gameplay reveal of Square Enix's Kingdom Hearts 4, which is confirmed for a simultaneous day-and-date release on PlayStation 5, Xbox Series X/S, PC, and Nintendo Switch 2 . Additionally, Capcom announced Dragon's Dogma 2: Dark Arisen, a massive expansion launching on October 9, 2026, alongside a native Nintendo Switch 2 port of the base game . These major announcements helped overshadow a €35 million settlement Nintendo of Europe agreed to pay over historical Joy-Con drift defects, as well as the quiet conclusion of its Palworld patent lawsuit, which is expected to yield minimal financial damages .
Grand Theft Auto 6 Release Date Triggers Autumn Game Delays
The looming November 2026 release of Rockstar Games' Grand Theft Auto VI is already reshaping the autumn release calendar, forcing developers to shift their schedules to avoid the highly anticipated giant . One More Level has delayed its Soulslike action game Valor Mortis from September to late October, while developer S-Game is taking a bolder approach by keeping Phantom Blade Zero in its late October slot .
Meanwhile, hands-on previews from Summer Game Fest have provided closer looks at several major upcoming titles. Creative Assembly's Alien: Isolation 2 is sticking close to its predecessor's terrifying survival horror roots on PC, PlayStation 5, Xbox Series X/S, and Nintendo Switch 2 . Crystal Dynamics and Flying Wild Hog defended their use of generative AI during the development of Tomb Raider: Legacy of Atlantis, promising that the final game will feature entirely human-crafted content when it launches on the Switch 2 next year . Finally, Capcom confirmed that its Resident Evil Veronica remake will feature a fixed third-person perspective on PlayStation 5, restructuring the original story to align with modern remakes .
Ubisoft Closes Multiple Studios in Global Restructuring Effort
French publisher Ubisoft is executing another major round of layoffs and studio closures as part of an ongoing global restructuring process . The company is shutting down its development studios in Winnipeg, Canada, and Belgrade, Serbia, while proposing further staff reductions at its Barcelona office and San Francisco branch . These combined actions put up to 380 roles at risk across the publisher's global network as it attempts to streamline its operations .
