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Id Software laid off 136 people, more than half its workforce, as Microsoft cuts 1,600 roles with another 1,600 Xbox positions still at risk.
Microsoft targeted 77 million Game Pass subscribers. Forza Horizon 5 creative director Mike Brown says the service failed to attract enough users to be viable.
Microsoft's 3,200 layoffs reached id Software, where director Hugo Martin claimed the studio avoided major cuts. Current and former employees are now disputing that assessment.
Todd Howard called Microsoft's Xbox cuts "very difficult for our teams." The Bethesda head noted the impact on staff after recent layoffs and project shifts.
Valve's Steam Machine review calls the hardware a compromised console that shines with indie games yet leaves Sony, Microsoft, and Nintendo in control of living-room play.
Microsoft restored a 25-year-old account to a Dutch streamer after a hack, following sustained player pressure. The incident highlights how little ownership players retain over decades-old digital libraries.
US and Canadian video game unions filed charges with the NLRB accusing Microsoft of bad faith bargaining over Xbox. The complaints center on contract talks with affected workers.
Microsoft says id Tech remains safe after the id Software layoffs. Former staffers say the cuts removed everyone who could maintain the engine.
Microsoft explained why Tony Hawk's Pro Skater 1+2 was pulled from the upcoming Xbox Game Pass schedule. The title was set to arrive but no longer appears on the list.