Microsoft has laid off thousands of workers over the past few years to correct its financial spreadsheets, but "significant layoffs" are on the way for Xbox as part of new CEO Asha Sharma's "Xbox Reset," according to a new report from Bloomberg. In a new Xbox Wire blog post that is a copy-paste of an email sent to Xbox employees globally, Sharma and Xbox chief content officer Matt Booty discuss problems facing Xbox's future and plans to course-correct. Though she doesn't mention layoffs, the messaging in this joint post seems to signal the layoffs Bloomberg reports are incoming, according to its sources within the company. 

Bloomberg reports that, though the exact scale of the layoffs is unclear, they are expected to occur after the close of Microsoft's fiscal year on June 30, alongside significantly slashed budgets for marketing and other areas of the Xbox business. Sharma and Booty say the company will end its fiscal year "at about a 3% accountability margin, down year-over-year," with an annual revenue decline of nearly half a billion during that time alongside a $20 billion spend in ongoing investments in "content, platform, and hardware subsidy," excluding Activision Blizzard King. Critically, a 3% accountability margin means that for every $100 Xbox makes, it keeps $3 as profit, as noted by Bloomberg reporter Jason Schreier over on Bluesky. Sharma and Booty's email reads, "Going forward, this cannot continue." 

In that same email-now-Xbox-Wire-blog-post, Sharma and Booty indicate that Xbox overextended itself during its acquisition spree this generation, potentially hinting at studio closures to course-correct. "We expanded our studio system when we needed a pipeline of content to meet multiple strategies across subscription, streaming, and devices [editor's note: Xbox has made clear it is pivoting away from recent "This is an Xbox" marking to return to exclusivity and a focus on Xbox-developed hardware]," it reads. "In the process, we have found ourselves overextended as we executed on changing strategies in a landscape of more readily available content. We are the fortunate stewards of industry-defining franchises that have enormous potential and player demand, but we have not adequately funded them to compete and win. At the same time, as we saw this past weekend at [the 2026 Summer Xbox Games Showcase], a reliable pipeline of first-and third-party exclusives and new IP is critical to our success. We need to reassess the balance between these and our investment priorities for the next 5 years." 

The Verge reports that its sources suggest the planned layoffs and budget slashes could include a studio closure. 

Elsewhere in the post, Sharma and Booty write about the cost of console storage components, which has risen to five times their cost two years ago, and how Xbox needs a new business model and partnerships for hardware, "as we remain committed to [Project Helix]." The two also write that Xbox's current platform infrastructure "is not built for the battle ahead," with systems too complex and reliant on vendor dependencies to be as efficient as they feel the company needs to be.

"Now we start the next 100 days. It is important to have both optimism and realism as we work to reset the business," the blog post reads. In its final paragraphs, Sharma and Booty write, "For some of you, these realities will be surprising and even frustrating to discover. We won't succeed by hiding hard truths, nor will we succeed by doing the same thing and expecting results. Like the 'everyday wins' mentality from the first 100 days, we will sprint to make progress against hardware, content, experience, and services together." 

This Xbox Wire blog post comes just days after Xbox's big SGF-related showcase, where it revealed that Gears of War: E-Day and Clockwork Revolution will be Xbox console-exclusive titles, alongside a new look at Fable, which will launch on PlayStation 5 as well as Xbox. We also interviewed Matt Booty at Summer Game Fest Play Days to discuss the current state of Xbox, which you can read here. 

[Source: Bloomberg, The Verge]

Platform: PlayStation 5, Xbox Series X/S, PC
Publisher: Sega
Developer: Ryu Ga Gotoku Studios
Release: January 15, 2027

RGG Studios made a name for itself through the narrative action games in the Like a Dragon series. At a cursory glance, Stranger Than Heaven may look like it is simply using the core tenets of RGG’s most famous franchise to deliver the tale of Makoto Daito across multiple eras and cities in Japan. However, after getting my hands on it and speaking with studio head and Stranger Than Heaven executive director Masayoshi Yokoyama, it’s clear RGG is swinging bigger.

In 1915, Makoto arrives in Japan aboard a smuggler ship in Kokura, Fukuoka, one of the world’s largest metalworking hubs. However, it’s also a hub for seedy activities. As the story progresses and Makoto establishes himself in Japan, the locations and eras also progress. The story leading to Tokyo in the ’60s is inevitable, as Stranger Than Heaven tells the tale of the founding of the Tojo Clan, as it will appear later in the Like a Dragon franchise.

Though this is a major connection to RGG’s flagship franchise, the team didn’t go out of its way to add nods to the series of games that it leads into. Similarly, just because this exists in the same world and carries a similar aesthetic doesn’t mean combat feels the same. Instead, Stranger Than Heaven adds a much more intentional style of fighting that primarily utilizes the shoulder and trigger buttons; the right and left shoulder buttons are mapped to control Makoto’s right and left arms, respectively, while the triggers control his corresponding legs. You can also dodge and block directionally to land brutal counterattacks, or squeeze both triggers to grab or tackle opponents.

It sounds complex, but I played through three encounters across three eras, and by the time I finished the fights, the mechanics were singing. The first fight saw Makoto unarmed against a group of standard men in Kokura in 1915, while subsequent encounters took me to 1929 Kure and 1943 Osaka with weapons in tow. Using a large crowbar for crowd control was enthralling, and my final challenge was a one-on-one knife fight against a brutal swordsman. Though the earlier battles allowed me some degree of brute-force success, the Osaka fight against the swordsman required me to be patient and precise with my parries; one false move could cost me the vast majority of my health bar. In fact, it took me seven tries before I successfully ended his reign of terror in the streets of Osaka.

Seeing RGG develop various combat systems in parallel – two distinct Like a Dragon fighting systems, the directional combat in Stranger Than Heaven, and fighting-game mechanics in the recently unveiled Virtua Fighter Crossroads – is impressive. Not unlike its protagonists, this studio can master varied fighting styles. “It’s not really about the systems; it’s about the experiences,” Yokoyama says. “You’re able to customize the experience to fit the story, like it’s an extension to accentuate it in the best possible way. That’s why, for example, in Like A Dragon 7, we went for the turn-based system, because until then, we were having these stories where it’s single-character fights, but for Ichiban Kasuga, his story was that of fighting with friends to achieve a goal. So for that, a turn-based, party-based system just felt right. It’s the same thing for Stranger Than Heaven: having the system we chose of really tense, visceral battles really just fit the character and fit the story.”

 

RGG Studios’ reveals at Summer Game Fest gave new meaning to the word “Stranger,” as the cast was revealed to include not only Snoop Dogg, but also the late Tupac Shakur, who has been dead for almost 30 years. The reaction in the gaming community was mixed, with many questioning how respectful it was to include the legendary rap artist in the role, and if the likeness would be handled with care. After Snoop Dogg was cast in the role of Orpheus, Makoto’s best friend, the hip-hop artist recommended Tupac’s likeness for the role of Amaru. RGG worked closely with Snoop, Shakur’s likeness owner, Amaru Entertainment, and Shakur’s family and intend for his depiction to honor the rapper without disrespecting him.

I did not get to see Amaru in my gameplay, but it does assuage initial worries that the studio didn’t involve anyone from the late rapper’s family. We won’t know for sure until Stranger Than Heaven is out early next year, but Yokoyama’s caution on the topic gives me hope.

Platform: Switch
Publisher: Nintendo
Developer: Nintendo
Release: July 2, 2026
Rating: Everyone

Rhythm Heaven has been one of the more underserved Nintendo franchises over the last decade and a half. Excluding the compilation-style 3DS release in 2015, the last all-new entry in the franchise arrived in 2011 on Wii, meaning it’s been around two and a half full console generations since we last played a brand-new game in the series. That changes soon with Rhythm Heaven Groove on Switch, and we had the chance to get our hands on the franchise-reviving entry.

Rhythm Heaven Groove features the largest collection of rhythm-based minigames in franchise history, with more than 80 solo games and more than 30 multiplayer games across cooperative and competitive modes. On top of that, players can unlock access to a mini rhythm-based RPG called Beatspell.

In the single-player mode, the sheer variety of games on offer is impressive. Yes, they’re all rhythm-driven, but each brings a different gameplay mechanic, and perhaps more importantly, a new earworm with which to play along. Hoop Trundling puts you at the end of a line, tasking you with following the rhythm of those in front of you as you jump through incoming hoops. Brolly Good Show adds some complexity by having you open and close your umbrella in time with those next to you. Disc Dog was one of the more challenging ones, as you needed to jump to catch a frisbee seven beats following a toss. The final challenge in the first collection is Feeding The Beast, where you control a dinosaur-like creature eating plants to the beat. 

Once you complete all games in a collection, you unlock the Remix, which combines the preceding games into one song. Unified by the song’s beat, I enjoyed how it kept me on my toes, even in the first collection. I can’t wait to see how it ramps up in difficulty and chaos as the games themselves become more involved.

Each minigame provides a familiar yet unique challenge, and ends with an assessment of how you did. If you do well enough to earn the “Amazing” rating, you get a medal. I made it my personal goal to get medals for every rhythm game I was able to play, and sadly, I only fell just shy in the second part of my single-player gameplay when we jumped ahead to the third collection of games. There, I played two games: Slice N Dice and Hop, Stop N Roll. Slice N Dice put me in control of a woman chopping veggies in her kitchen, while Hop, Stop N Roll turned me into a lucky cat figure hopping and rolling in time with other cats. Both were more demanding than the games in the first collection, which meant more fun for me.

In multiplayer, I played two games with a group of four players. Cake Wait is a competitive game where a timer counts down from 10 and everyone needs to press a button as close to when the clock hits 0 as possible. This resulted in some tense moments between players, because the clock disappears as the seconds tick away, serving as a strong test of timing. Then, in Ninja Bodyguard, the four of us worked together to protect a carriage from archers. This experience was less tense but delivered the same rhythmic fun as the other games, but with an added layer of camaraderie.

My gameplay session ended with Beatspell, the unlockable RPG-style mode built into Rhythm Heaven Groove. After earning a certain number of medals, new chapters of Beatspell become available. I played through the first two chapters. As encounters progress, you tap different commands as the beat progresses around a diamond chart. Each command casts a different spell. For example, tapping B on one corner, then A on the next, casts the flame spell to deal damage to the enemy you’re facing. However, if you add down on the d-pad on the half-beat between them, it instead casts Cure on yourself.

After taking down two monster boss battles, my session ended. I have always enjoyed Rhythm Heaven, and I’m beyond happy that the Switch’s popularity has enabled Nintendo to take more chances on dormant franchises. I’m excited to see how the single-player offerings play out as you get deeper into them, and I look forward to busting this game out at future friend gatherings.

Ubisoft has announced a new wave of organizational restructurings resulting in the closures of two studios and hundreds of layoffs. 

As reported by Insider Gaming, the publisher sent an internal message to staff stating how it has been evolving to “simplify how it operates, reduce its cost base and strengthen the company for the long term.” To that end, it has shuttered its studios in Winnipeg and Belgrade.

Ubisoft Winnipeg opened its doors in January 2019 and served as a support studio for titles such as Rainbow Six Mobile, Far Cry 6, and Assassin's Creed Valhalla. Winnipeg's closure has reportedly impacted 65 employees. Ubisoft Belgrade had existed since 2016 and worked on several titles, including the recently revealed Assassin’s Creed Black Flag Resynced. Roughly 100 employees are reportedly impacted.

Additionally, layoffs have been announced at Ubisoft Barcelona (51 employees) and Ubisoft San Francisco (the exact number of impacted employees is unknown, but was described by Insider Gaming as being “dozens”). The publisher also announced plans to restructure the Barcelona studio to focus on Rainbow Six projects. In total, Ubisoft’s internal message states that up to 380 employees may be affected, according to the message obtained by Insider Gaming. 

Today’s news is the latest development in a company-wide restructuring that has persisted since 2024. It follows the formation of subsidiary Vantage Studios to manage the Assassin’s Creed, Far Cry, and Rainbow Six franchises and an organizational “reset” announced in January that led to several game cancellations, including the long-awaited remake of Prince of Persia: The Sands of Time.

In the past two years, Ubisoft has shuttered studios in Leamington and Halifax and disbanded the internal team responsible for the well-received Prince of Persia: The Lost Crown due to underwhelming sales. Ubisoft also proposed layoffs at studios such as The Division developer Massive Entertainment and Trials developer RedLynx. Ghost Recon developer Red Storm Entertainment lost 100 employees in March and, while still in operation, has ceased active game development.

Today's news comes after Summer Game Fest, where the publisher showcased upcoming titles such as Assassin's Creed Black Flag Resynced and Rayman Legends Retold. While it has other Assassin's Creed projects in the works, as well as the long-in-development Beyond Good & Evil 2 and Splinter Cell remake, it's unclear what Ubisoft has in the pipeline in the foreseeable future. 

Game Informer has contacted Ubisoft for comment and will update this story should we receive one. 

This past weekend at Summer Game Fest 2026, I played a new movement first-person shooter from 1047 Games, the developer behind Splitgate and its polarizing sequel. Empulse, the studio's new multiplayer title, channels Titanfall 2 in the best ways. Players fight over control of a hulking, pilotable mech by using grapple hooks, wall-running tech, and P.A.I.N.T. grenades that splatter the map with special effects.

Empulse releases on Steam via Early Access on June 24 for $19.99 and is also available to play during Steam Next Fest beginning June 15, 2026. Watch the video below to learn more about why I enjoyed playing Empulse at Summer Game Fest. 

Splitgate Dev's New FPS Channels Titanfall 2 In The Best Ways:

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