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Fallout from Xbox layoffs continues as studios pivot

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Fallout from Xbox layoffs continues as studios pivot

After Xbox revealed that a further 268 roles across Halo Studios, other first-party studios would be cut as part of Microsoft’s restructuring efforts, multiple studios have announced changes, either under the Xbox umbrella or away from it.

Undead Labs, the studio developing the upcoming State of Decay 3 has confirmed that they’re now going independent after more than ten years as an Xbox owned studio. The developer is still working on State of Decay 3 and the game will still be arriving on Xbox Game Pass on day one, despite the studio no longer being owned by Microsoft. The game will also still release on PS5, Xbox, and PC some time in 2027.

After announcing their new independent status on LinkedIn, Undead Labs revealed that they will also be facing jobs cuts, saying, “Unfortunately, today we are also saying goodbye to a significant number of our colleagues. It’s difficult to reach this moment knowing that not everyone who helped get us here gets to make the rest of the journey with us.”

As confirmed by creative director Adam Isgreen on Reset Era, World’s Edge, the developer behind Age of Empires has had almost half of it’s staff laid off in the recent cuts. In his post, Isgreen said, “FYI World’s Edge was not spared completely – just under half the studio was let go – myself included,” and “Been fun, y’all!”

Candy Crush developer King will now be responsible for Microsoft Casual Games, such as Solitaire and Mahjong.



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