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Xbox Reset Looming, Zelda Ocarina of Time Remake for Switch 2

Jun 8, 2026 — Jun 15, 2026 · 1mo ago

The video game industry is undergoing a massive shift as Microsoft prepares for a sweeping organizational reset of its Xbox division amid rising hardware costs. Meanwhile, Nintendo has energized players with a blockbuster lineup of announcements for the newly launched Nintendo Switch 2, including a highly anticipated remake of a classic. These contrasting fortunes highlight a rapidly evolving landscape where publishers are forced to make drastic strategic pivots.

Xbox Reset Looming as Microsoft Faces Hardware Crisis and Studio Closures

Xbox is closing down Hellblade creator Ninja TheoryXbox Memo Predicts over 5x Increase in Storage and Memory Costs by Holiday 2027The VergeDigital Foundry

Microsoft is reportedly planning a massive "Xbox reset" that could result in the closure of several prominent game development studios, including Hellblade developer Ninja Theory, while others like Compulsion Games and Double Fine Productions negotiate to spin off into independent entities The VergePC GamerPush SquareGamesIndustry.biz+1. This turmoil follows a leaked internal memo from Xbox CEO Asha Sharma and Matt Booty outlining a "Next 100 Days: Xbox Reset" strategy to combat a severe components crisis, with storage and memory costs predicted to increase fivefold by holiday 2027 Digital FoundryIGN.

The financial pressure has already impacted the business, with Xbox Chief Strategy Officer Matthew Ball confirming that Xbox Game Pass lost "millions" of subscribers following the October 2025 price hike to $29.99 per month Pure XboxEurogamerThis Week in Video Games. To stabilize the business, Microsoft CEO Satya Nadella is demanding faster turnaround times on major Bethesda Game Studios franchises like Fallout and The Elder Scrolls, while leadership explores radically different business models, including cheaper hardware and ad-supported subscription tiers Push SquarePure XboxEurogamerVGC+1. Amid these challenges, high-profile departures have hit the division, with Xbox Game Studios head Craig Duncan and chief of staff Louise O'Connor both stepping down Game DeveloperGamesIndustry.biz.

Zelda Ocarina of Time Remake and Xenoblade Genesis Lead Nintendo Switch 2 Lineup

The Legend of Zelda: Ocarina of Time's rumoured Switch 2 remake is real, but all we're getting is a teaser for nowZelda: Ocarina Of Time Remake Is Real, And It's Launching This YearEurogamerNintendo Life

Nintendo has officially announced a full remake of the legendary Nintendo 64 classic The Legend of Zelda: Ocarina of Time for the Nintendo Switch 2, scheduled to launch later this year EurogamerNintendo LifeThe Verge. While the debut teaser trailer showcased a high-fidelity, realistic visual style, a briefly leaked description on Nintendo's official website suggests the game will remain highly faithful to the 1998 original's "timeless gameplay" Nintendo LifeIGNNintendo LifeVGC.

Alongside the Zelda reveal, developer Monolith Soft announced Xenoblade Genesis for a 2027 release on the Nintendo Switch 2, supported by upgraded 4K, 60fps Switch 2 Editions of the original trilogy launching to bridge the gap VGCIGNAutomaton WestNintendo Life+1. Third-party support is also ramping up, with Square Enix revealing the first gameplay trailer for Kingdom Hearts 4, which is confirmed for a simultaneous day-one release on PlayStation 5, Xbox Series X|S, PC, and the Nintendo Switch 2 PC GamerRock Paper ShotgunNintendo LifeGematsu. To ensure actual fans can secure the newly launched console, Nintendo has introduced strict purchase conditions in Japan, requiring customers to prove they have registered at least 50 hours of playtime on the original Nintendo Switch to buy the multi-language model This Week in Video GamesNintendo Life.

Grand Theft Auto 6 Release Date Triggers Autumn Game Delays

"GTA is like the ogre" - It's an "odd" year to release a video game, says A Plague Tale studio AsoboValor Mortis Gets Short Delay to Avoid September's Onslaught of Game ReleasesEurogamerIGN

The looming launch of Rockstar Games' Grand Theft Auto VI in November 2026 is already causing a massive traffic jam in the autumn release calendar, forcing developers to adjust their schedules to avoid the highly anticipated giant EurogamerPush SquareEurogamer. One More Level has delayed its Soulslike action game Valor Mortis from September 24 to late October to escape the congestion, while developer S-Game is taking a bolder approach by keeping Phantom Blade Zero scheduled for late October IGNEurogamerEurogamerPush Square.

Meanwhile, hands-on previews from Summer Game Fest have offered a closer look at upcoming titles, including Alien: Isolation 2, which retains the slow-burn tension and brutal stalker AI of the original survival horror classic Push SquareNintendo LifeVGC. Additionally, previews for Tomb Raider: Legacy of Atlantis revealed modernized gameplay for Lara Croft's original 1996 adventure, though developers Crystal Dynamics and Flying Wild Hog had to defend their use of generative artificial intelligence during the design process PlayStation BlogIGNEurogamerPush Square.

Ubisoft Closes Studios and Electronic Arts Launches In-Game Advertising

Ubisoft is closing multiple studios, resulting in up to 380 job lossesUbisoft are reportedly laying off up to 380 staff, as the Assassin's Creed publisher closes two studios and restructures anotherVGCRock Paper Shotgun

Ubisoft is executing another major round of layoffs and studio closures as part of its ongoing global restructuring, shutting down its development offices in Winnipeg, Canada, and Belgrade, Serbia VGCGamesIndustry.bizRock Paper Shotgun. The French publisher is also restructuring its Barcelona office to focus exclusively on the Rainbow Six franchise, putting up to 380 roles at risk across its global network Rock Paper ShotgunGamesIndustry.biz.

In a controversial move to scale marketing capabilities, Electronic Arts has officially launched "EA Advertising," a new platform designed to integrate brand ads directly into active gameplay for sports titles like EA Sports FC and Madden NFL Game DeveloperEurogamerVGC. Conversely, Capcom is walking back some of its monetization strategies, announcing plans to discontinue the deluxe edition of Dragon's Dogma 2 and withdraw many of the controversial, time-saving microtransactions that drew heavy criticism at launch Eurogamer.