Fortune reports that Xbox has layoff rounds planned for October, November and January. CEO Asha Sharma has cut 1,868 people so far as part of plans to reduce headcount by 3,200 over the next year, and Fortune notes layoff plans can change.

The Coalition, developer of Gears of War: E-Day, stands out as one area of uncertainty.
Xbox is internally estimating next-gen Helix consoles at between $1,200 and $1,800.
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Xbox is planning a major overhaul of Game Pass that would let players choose features à la carte, including add-ons for console-only games, cloud gaming and multiplayer, while keeping a tiered structure, Fortune reported, citing people familiar with the strategy. Microsoft has not announced the change.
Xbox CEO Asha Sharma plans a next-generation handheld by the 2027 holiday season and the next Xbox console by holiday 2028, Fortune reports, citing people familiar with the strategy. Microsoft has not confirmed the timeline. Fortune also reports a dispute between the Xbox and Windows teams over the handheld's operating system.
Shrek 2 Remastered launches Nov. 10, 2026 on Xbox Series X|S, a date revealed during today's ID@Xbox Showcase. Aspyr rebuilt the 2004 co-op game with 4K, better textures, an enhanced UI, Photo Mode and Cheat Mode.
Grounded 2 has received the Rot and Ruin Update, which adds the Woodpile area, Centipede boss, Potato Beetle Buggy, painting tools, and Bismuth upgrades. The expansion gives players new exploration, combat, and customization options in Brookhollow Park.
Microsoft has internally projected its next-generation Project Helix Xbox console to cost consumers between $1,200 and $1,800 unless it subsidizes the price, Fortune reported. Xbox CEO Asha Sharma has called affordability a key challenge as AI demand squeezes memory and storage supply.