The dust is still settling over Xbox's "big reset" cuts, and will continue to settle for many weeks to come just yet.

Microsoft CFO Amy Hood has led a massive job culling across the firm, with almost 5,000 staffers set to lose their roles over the next fiscal year. 3,200 of those will be in Xbox alone, with some escaping as divestitures. Remaining studios have been "gutted" by some accounts, with massive reductions at Obsidian and id Software, despite success stories in Grounded 2 and DOOM: The Dark Ages.

The silver lining for some is that Xbox execs spent the past few weeks finding buyers for studios Microsoft's CFO lined up to otherwise shut down. One of those is Undead Labs, makers of State of Decay, who have been through hell and back to get to where they are today.

Undead Labs was founded in 2009 and acquired in 2018, as Xbox sought to bolster its exclusive content spread for Xbox. The integration was immediately met with problems.

Undead Labs leader, co-founder, and World of Warcraft alumnus Jeff Strain left the studio in 2019 not long after the acquisition, and then the firm was immediately hit with lockdown regimes heading straight into the Covid-19 pandemic. The disruption was palpable.

Unable to properly incubate State of Decay 3, Undead Labs worked on free updates for State of Decay 2 as Microsoft struggled to properly integrate the studio and teams. Despite State of Decay 3 being announced in 2020, it wouldn't actually enter full development until far later.

These should be mitigating factors when Microsoft's bean counters were looking at ways to reduce costs. But, in Microsoft's typical, disappointingly short-sighted fashion, Microsoft seems oddly unaware of the potential it has in the palm of its hands.

Indeed, as of writing, State of Decay 3 is presently the 28th most wishlisted game on Steam, and comes in higher than Halo Campaign Evolved and Gears of War: E-Day both. As far as Xbox games go, State of Decay 3 is second only behind big-budget blockbuster Fable.

State of Decay 3 was by far my most anticipated Xbox game this side of Clockwork Revolution. The early alpha glimpses we've gotten look incredible, and as an evolving multiplayer title, it has the painfully obvious potential alongside games like Grounded and Sea of Thieves.

It's utterly absurd and frustrating that Microsoft, for whatever reason, weren't able to give them just a bit more time and subsidize their own mistakes. Microsoft banks billions of dollars annually, and there's really no excuse for the disruption and havoc it is imparting onto its teams.

I'm not naïve. I know quite painfully well that in order to get paid, you have to have a business that makes money — at least eventually. But at the same time, Microsoft is also among hyperscalers chasing AI infrastructure expenditure based on theoretical growth, using the models of companies funded entirely by theoretical money.

Of all the cutbacks and nonsensical choices Microsoft has made this week, State of Decay 3 above all, for me, underpins how Microsoft's fiscal management policies all too often make for hasty self-defeating mistakes.

There are arguably projects at Xbox that shouldn't have been greenlit, and there are strategic decisions made that remain utterly questionable for sure — but Microsoft is making so many baffling choices to pay for those mistakes. For me, the fact Xbox has been forced to divest State of Decay 3 really represents the apex of Microsoft's generalized ignorance.

In the future, I look forward to writing about how studios like Undead Labs expanded and became success stories free of Microsoft. But there are many hundreds of developers who might not be so lucky.

Perhaps the thousands of employees that remain at Xbox will benefit from a more focused Xbox managerial structure not spreading themselves so thinly, but it remains to be seen. And perhaps I actually am being naïve here.

Microsoft has created an environment where every FY end in July, we're writing articles like this. Being reminded of missed opportunities, and the human costs of Microsoft's legendarily short-sighted impatience.

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Amid Xbox's restructuring efforts, which will see more than 3,200 jobs cut between now and 2027, with 1,500 layoffs happening immediately, the company has also outlined a bold vision for its future. That's not all, Xbox is also set to part ways with at least four studios, but unlike Sony's closures, these teams are being given a second chance, with some becoming independent and others finding new homes under different publishers. If you haven't caught up with the news yet, Compulsion, Double Fine, Undead Labs, and Ninja Theory are among those affected, while Arkane Lyon's future is a little more complicated. You can read more about Arkane here.

Within Xbox CEO Asha Sharma's statement, she said:

"These changes are about a bigger future for Xbox, not a smaller one... this year we'll invest as much in Xbox as we ever have, but we'll invest with greater focus, greater discipline, and greater clarity, all in service of making Xbox where the world plays and creates."

Alongside those comments, Sharma also stated:

"I want XBOX to be one of the few companies that entertains more than a billion people each day and gives everyone the opportunity to create and connect. I know we can achieve this goal. XBOX has many of the most beloved franchises in entertainment history, talented studios around the world, and we will return to growth in 2027"

To put that into perspective, Xbox currently reaches around one billion players annually. Meanwhile, Steam has roughly 147 million monthly active users, while PlayStation sits at around 125 million monthly active users. Reaching one billion players every single day would require Xbox to grow far beyond anything we've seen from the gaming industry so far.

I'm not entirely sure how Sharma expects to achieve that outside of expanding into regions where Xbox currently has little or no official presence. That includes parts of Africa, South America, and, believe it or not, large parts of Europe, including countries such as Romania. Xbox also doesn't officially operate in markets including Indonesia, Pakistan, and Bangladesh. There are, of course, legal and regulatory hurdles that make expansion into some of these regions difficult, but beyond reaching more countries, I'm struggling to see what else could realistically get Xbox anywhere close to that figure.

Another take would be that Sharma doesn't refer to "players" directly, but instead says that the goal is that Xbox "entertains more than a billion people each day." That reading could expand beyond gaming into other features that Xbox currently supports, like Netflix, YouTube, Twitch, YouTube TV, HBO Max, Jellyfin, PLEX, and the other dozen or so media apps that people use daily.

That more liberal reading of using an Xbox daily is certainly more achievable, at least once you cumulatively sell a billion Xbox consoles.

Maybe I'm missing something, though. If you've got ideas on how Xbox could realistically reach one billion daily players, let me know in the comments, and be sure to take part in our poll below:

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Xbox’s restructuring is here, and we’ve got all the details, which you can find here. I also recently covered reports that State of Decay 3 may no longer be destined for Game Pass, but today we’re talking about Marvel’s Blade, a project whose future is looking increasingly uncertain.

It wasn’t long ago that my colleague Jez Corden reported Arkane had new leadership under Jerk Gustafsson from MachineGames. While that change actually happened last year and was only made public recently, it initially seemed like a positive sign for the studio. Unfortunately, that optimism has faded.

Now, thanks to new reporting, we know Microsoft is in discussions with the French government "to try and figure out a path forward for the legendary Dishonored maker, with the goal of saving Arkane from closure," while also hoping to keep Blade in development.

Additional reporting from The Verge also claims that Blade is "running over budget." With discussions involving the French government potentially taking months, the future of both Arkane and Marvel's Blade remains very much uncertain.

It’s also revealed that Blade has been delayed, in addition to its budget issues, so it really isn’t looking good for the Marvel franchise.

Outside of State of Decay 3 from Undead Labs, which was my most anticipated game from the affected studios, which includes Compulsion and Double Fine, Blade was probably the project I was most curious about. I mean, it's Blade. Sony has Spider-Man, so Xbox having its own Marvel game always felt like a great fit.

This latest update is concerning, though. Blade has reportedly been in development for over five years, and if it's now running over budget, it's hard not to worry. Given the current state of the industry, it's becoming increasingly difficult to justify projects that spend years in development only to run into repeated delays and budget issues.

As difficult as all this news has been, I genuinely hope everyone affected across Xbox is able to land on their feet. I also hope Xbox can steady the ship and come out stronger on the other side. With that said, let me know your thoughts in the comments, and be sure to take part in our poll below:

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When the first rumors of Xbox's massive 3,200-role restructure started circulating weeks ago, just days after the Xbox Games Showcase, the Xbox community was awash with opinions on how Xbox should handle its lower-performing studios, and deserved criticism awaited the management that had allowed all of this mess to happen.

We've seen this play before: a spreadsheet-driven mega-corp consolidation normally means a beloved studio gets wiped off the map, and its intellectual property is discarded into a black hole, never to see the light of day again.

In a "best of a bad situation" twist, today Xbox CEO Asha Sharma has announced that in an effort to combat Microsoft's losses of 64 cents for every dollar invested in these teams, Compulsion Games and Double Fine are going independent. Ninja Theory and Undead Labs, on the other hand, will transition to new publishers.

No projects have been canceled (yet), no studio doors have been shuttered (yet). These studios now have a lifeline and a chance of survival outside the clutches and "14 layers of management" of Microsoft.

Following all this, I plead with the Xbox community: if you genuinely care about the survival of these studios beyond social media soliloquies, then it's time to put our money where our mouths are and support them.

RELATED: Xbox's big "reset" cuts: Compulsion, Double Fine, Undead Labs, Ninja Theory to leave Xbox — 3,200 roles to be removed

State of Decay 3 is not obligated to launch on Xbox Game Pass

Now, the true test of gaming consumers' loyalty is coming sooner than you think. As we recently shared, State of Decay 3 is no longer obligated to launch on Xbox Game Pass under it's new announced ownership terms. The same reality will likely apply to Ninja Theory's future projects.

This will change the entire equation for the average Xbox consumer. For nearly a decade, Xbox gamers have been conditioned to treat first-party titles as perks of the monthly subscription and haven't had to really weigh up the financials of each individual game purchase. Now this is a model I fully support, and it makes gaming so much more accessible for the majority, but clearly the math isn't mathing enough for Xbox.

Undead Labs could now be stepping out into the competitive wild west if they choose not to launch on Xbox Game Pass. Not giving the audience a chance to try your multiplayer game before buying it is a huge gamble, but if enough people buy it at retail price, it could pay off.

Whether studios decide to launch on Game Pass or not, we as players need to step up.

Vote with your wallet

I want to be clear: this isn't about virtue signaling in the way I see people do all the time about players choosing to use Xbox Game Pass as their main source of gaming entertainment. This is not a lecture. The current economic realities are brutal, and everyone should do what is best for their own budget.

Not every gamer has a disposable $70 (or whatever this game will cost) lying around to drop on a whim, and no one should feel guilty for protecting their own finances. That aside, my message is explicitly aimed at those who can afford it.

If you are a fan who spent the last year screaming on social media about corporate greed, demanding that Microsoft "let their studios cook," you now have a real chance to support those studios. Buying these games at retail on day one, whether on Xbox, PC, or PlayStation, is the clearest way to send a message to the rest of the industry that the work these studios does matter. (Note: State of Decay 3 is currently on the Steam Most Wishlisted games list and has already surged by 1,977 additions this week.)

It proves that mid-sized and experimental games have a viable commercial audience outside the protective bubble of Xbox's checkbook. Or, indeed, if nobody buys the games, it proves that Xbox ultimately made the right decision with these moves.

Xbox has made its new strategy crystal clear: they are slimming down their overly complex corporate structure, protecting their next-gen console hardware, and narrowing their focus to mega-franchises like Halo and Fallout. They want to be leaner, meaner and more profitable.

As for studios like Undead Labs and Ninja Theory, if we want these newly freed studios to flourish, we have to stop treating them like subscription padding and start treating them like creators worth paying for. If you can support them, you absolutely should.

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Microsoft Flight Simulator is a criminally underrated game, mostly because of the implied skill ceiling that realistic sims usually demand. However, it's actually extremely approachable thanks to a wide array of difficulty-tweaking options and a decent training segment that masquerades as a virtual flight school. Of course, a purpose-built controller can also help you feel immersed, but it's a confusing category for newcomers.

So, at the peak of last summer, I met with the engineers and peripheral designers at Honeycomb Aeronautical to see their latest entry-level flight sticks, HOTAS setups, and accompanying rudder pedals, with the mission of attracting new players. However, I was far more interested in a prototype Xbox-style joypad lying on a desk, covered with minuscule throttles and levers, instantly calling it "the coolest f—ing thing I've seen".

That great work-in-progress evolved into the game-changing Echo Aviation Controller, and one of my sole complaints was the lack of Xbox console support (though I knew it was planned for the future). Well, the future is now, as Honeycomb Aeronautical recently announced the Echo Aviation Controller XPC — compatible with XBOX Series X|S and, naturally, Windows PC — with plans to start shipping "from Fall this year".

Now, I usually wouldn't give much time to a standard press release — especially one without a concrete release date — but Honeycomb gets a pass for delivering exactly what I wanted. You'll get TMR and Hall-Effect sensors for drift-free inputs, alongside the strangely addictive experience of flying a replica plane with dedicated controls for landing gear, parking brakes, and flaps. It's more alluring than you might think.

It might look a bit strange at first glance, almost like two controllers fused together, but I warmed up to it extremely quickly, and I still use the original when I'm playing MSFS 2024 on PC over some of the best flight sticks. The only real downside to this XPC edition is that it could make the PC-only Echo somewhat defunct, depending on how much you crave Xbox-style face buttons. I've reached out to the company for any comments they may have on that.

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The dreaded Xbox layoffs have finally been confirmed, and they're pretty brutal. While the restructuring may have been necessary from a business perspective, seeing people lose their jobs is never easy. There's not much I can say other than hoping everyone affected is able to land on their feet.

One of the studios caught up in the restructuring is Undead Labs, the developer behind one of Xbox's most anticipated upcoming games, State of Decay 3.

State of Decay 3 is actually Xbox's most wishlisted game on Steam and currently sits among the platform's top 30 most wishlisted titles. As part of Xbox's restructuring, however, Undead Labs is reportedly being sold to a new owner. That's certainly better than simply shutting the studio down altogether, which is Sony’s go-to strategy, but I can't help feeling that Xbox has missed the mark with Undead Labs specifically.

Fans of Xbox Game Pass may also be disappointed by another reported detail. According to Game File, State of Decay 3 "will not obligate the game to any Xbox-controlling terms, such as having to be on Game Pass."

While that doesn't necessarily mean State of Decay 3 won't launch on Game Pass, it does mean the new owner won't be contractually required to put it there. Depending on who acquires the studio, that could have a significant impact on where and how the game is ultimately released.

As someone who grew up playing Call of Duty Zombies, I've always been a fan of zombie games, including the previous State of Decay titles. State of Decay 3 was certainly one of the Xbox games I was looking forward to the most.

While I'm glad the studio will still exist and, hopefully, get to ship the game, I can't help but feel Xbox has missed a huge opportunity here. Out of Compulsion Games, Double Fine, Ninja Theory, and Undead Labs, all of which are affected by the restructuring, Undead Labs was the studio that had the most promise, at least to me. Knowing it likely won't be part of Xbox going forward just feels like a massive missed opportunity.

Maybe that's just me, though. Let me know what you think in the comments, and as always, be sure to take part in our poll below:

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Amid a historic 3,200-person layoff across Xbox, starting with the 1600 initial layoffs today, our sources confirm the hardware team is seeing the fewest reductions, with a heavy focus on out-engineering the global tech supply crisis.

While today's brutal restructure at Xbox marks a devastating shift for the studios under its umbrella, we can report that at least for now, Microsoft's console ecosystem is surprisingly secure.

According to internal sources, Xbox's dedicated hardware division will see the fewest reductions in the multi-wave layoff event announced by CEO Asha Sharma today. Crucially, the highly anticipated next-generation console, codenamed Helix, remains entirely safe and on track.

RELATED: Xbox's big "reset" cuts: Compulsion, Double Fine, Undead Labs, Ninja Theory to leave Xbox — 3,200 roles to be removed

Rebuilding Xbox around the console players

In Sharma's directive to "rebuild the core", she has spoken plainly about the financial reality at Xbox. That Xbox's rapid software acquisitions and experimental Game Pass bets have failed to yield the margins expected.

To course-correct, Xbox is now pivoting back to its most reliable revenue generator: dedicated console users.

By shielding the hardware division from the brunt of these 3200 role cuts, Xbox hopes to ensure that the physical gateway to its ecosystem remains intact. If it intends to return to aggressive growth in the future, it needs competitive hardware as the foundation.

Battling the ongoing memory crisis

It's no secret that the road to Project Helix isn't without its significant hurdles. The consumer tech industry is currently gripped by a severe global memory availability crisis, which has sharply increased baseline manufacturing costs for next-gen silicon and storage solutions.

Rather than scaling back the console's scope or delaying its timeline, our sources indicate that Xbox’s hardware engineers are trying to tackle margin pressure through aggressive innovation to reduce the total cost of materials.

While the team is largely being spared the mass cuts hitting the software teams, they will still no doubt need to adapt to the operating model as laid out by Sharma, Divisions are being streamlined down to fewer than five layers of management, down from fourteen. Sharma has vowed "we will streamline how we work across our tools, with a cleaner code base, shared services, and 50% reduced vendor spend."

With Helen Chiang stepping into the newly created COO role to oversee end-to-end profit and loss, the hardware division now has a clear mandate: deliver a powerhouse next-gen machine that is financially viable from day one. If console is indeed the most profitable user base, it makes sense to focus here, but can they pull it off?

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Xbox's expected cuts are here, as CEO Asha Sharma delivers on previous warnings that "hard decisions" were on the way.

Microsoft's gaming division is joining broader cuts at the firm, which will see thousands of roles eliminated from across the company in the near to medium term. Preliminary sourcing suggests the initial wave will see 1,500 staffers impacted at Xbox alone, with a total of 3,200 through FY27.

In an email to staff, Xbox CEO Asha Sharma described how Xbox Game Studios are a whole is currently losing 64 cents for every dollar invested in the current climate.

"We are beginning the most significant restructure in XBOX history. After careful consideration, I've made the difficult decision to reduce our team by approximately 3,200 throughout FY27."

As part of the cuts, Microsoft has reached deals with four studios to either go independent or join new management, saving them from closure.

Compulsion, known for South of Midnight, will be acquired by management and go independent again. Double Fine Productions will also go independent, led by Tim Schafer. Undead Labs and Ninja Theory will be acquired by new publishers. Sources told us over the weekend that both Ninja Theory's Senua and Labs' State of Decay 3 will remain fully in production as part of the divestiture deals.

There's a question mark over Arkane and Blade, however. Microsoft is engaging the French government to try and figure out a path forward for the legendary Dishonored maker — with the goal of saving Arkane from closure, and keeping Blade in production. Right now, we can only hope Arkane finds a suitor to help keep the Dishonored and Blade maker afloat.

Beyond that, to meet the reductions Sharma has described every department at Xbox will see some form of layoffs and restructuring. Microsoft's executive layers want to reduce middle management across the board, in attempts to help Xbox move more quickly. Minecraft and Candy Crush's King will begin reporting in to Xbox's c-suite directly, for example, with a view of making them more competitive against incumbents like Roblox and things like Monopoly Go respectively.

There's also an effort to bring some of Xbox's remaining studios into closer collaboration, focusing on some of the firm's bigger franchises and potential. Xbox CEO Asha Sharma has been transparent about wanting to focus on things like Halo and Fallout. We could see studios like Obsidian dust off their Fallout mantle, for example.

What about Xbox hardware? It has been suggested to me that Xbox's hardware team will see the least amount of reductions, with Microsoft still intent on shipping Xbox hardware and Xbox Helix.

Microsoft's next-gen Xbox Helix console has been in production for some time, although the structural equations have been hit hard by the memory availability crisis gripping all of consumer tech. Regardless, I'm told Microsoft will soldier on with Helix and Xbox hardware in general. Microsoft is still intent on following Xbox CEO Sharma's plan to "rebuild the core," with a focus on Xbox's most profitable users: those on console.

A sad day for Xbox, and the industry in general

It's painful to me that Microsoft's bean counters wouldn't let Xbox hang on just a bit longer with some of these studios. It's hardly Undead Labs' fault that their integrations were defeated by Covid lockdowns and previous management leaving. State of Decay 3 for example has more wishlists on Steam than some of Xbox's other tentpole projects. It easily, in my view, has potential to be even bigger than similar multiplayer titles like Grounded or Sea of Thieves. It has been a long and expensive road to get here for sure ... but the rewards were literally just around the corner. Couldn't Microsoft have stayed the course just a bit longer on some of this stuff? Microsoft's penchant for giving up at the last hurdle is ceaselessly irritating.

Xbox gave some of its studios freedom to explore new IPs and experimental titles, which while virtuous, potentially hurt their capability to return positive news to those higher-ups working the spreadsheets. It's also difficult to argue against Asha Sharma's notes to staff about not wanting to compete with indie developers. It is a strange universe where Microsoft, the juggernaut, is building games that would otherwise be produced by comparatively far, far smaller teams with non-existent marketing budgets.

It's hard to deny that Xbox has massively dropped the ball on things like Fallout and Halo. Hindsight is 20/20, but imagine if the Fallout TV show had a mainline Fallout game to complement its popularity? Cyberpunk 2077 just hit 40 million copies sold, and is seeing another player count bump from integrations in Wuthering Waves and Cyberpunk Edgerunners Season 2 on Netflix.

RELATED: Xbox, please let your studios cook
RELATED: Inside Xbox's margin crush

Some of these plans revolve around laying the ground work to take advantage of these squandered opportunities. It should lead to a stronger Xbox in the years to come. But at the same time, it's staffers paying the price for previous decisions — whether owing to managerial mistakes, evolving user behavior, or macro-economic factors that nobody could really predict. It's not fair, is it? For all those impacted, it's just another round of needless chaos in our cold, AI-funny-money-powered economy.

"These changes are about a bigger future for XBOX, not a smaller one," Asha Sharma noted to employees. "The next decade of gaming will be larger, more global, and more creative than anything we've seen before. This year, we'll invest as much in XBOX as we ever have, but we'll invest with greater focus, greater discipline, and greater clarity, all in service of making XBOX where the world plays and creates."

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Appreciate how hard it is to write the name Erling Haaland and literally anything nice. The World Cup star plays for Manchester City, whom I am programmed to despise, as well as England's next opponents, Norway.

But, I know a man of undoubted class when I see one, and Haaland fits that bill because, like us, he's an XBOX man. Some of the games he's playing won't be too surprising, but at least one of them might be.

The video below via yoxic on X walks us through Haaland's Xbox, some of his favorite games, and yes, as a man of class, he also has the Xbox Series X mini fridge.

I had a mild panic when I read the caption before seeing the video before calming down when "Modern Warfare 2" does, in fact, refer to the original Call of Duty: Modern Warfare trilogy, not the reboot. I've met plenty of people who would agree on the old game and essentially nobody who would pass such lofty praise on the newer one.

There's no surprise to hear GTA 6 is most anticipated, though, fun fact, Haaland was only 13 when GTA 5 was first released. In the time between games he's grown up and become the most feared striker on the planet. Puts it into perspective how long we've been waiting!

Shoutout for Minecraft, too, another of the titles taking its place on Haaland's XBOX alongside the extremely obvious EA FC games.

Reaction on social media is plentiful, but the replies tagging Xbox CEO Asha Sharma and marketing chief Aaron Greenberg feel valid. One of the best known football players on the planet is basically doing free marketing here. If XBOX has any sense, they'll reach out about a partnership. Lord knows we could use some positivity.

There's a precedent for that, too. Darts sensation Luke Littler is also a proud XBOX player, which was soon followed up by an official partnership. All the youngsters out there that love Erling Haaland need to know he loves XBOX. It's a no-brainer!

That's enough from me, though. Time to lock in on the World Cup Quarter-Finals. England vs. Norway. We've got to get the man back home and on his XBOX as soon as possible!

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On this episode of the Windows Central Podcast, Zac and senior Xbox editor Jez Corden sit down to discuss the current state of Xbox, and where the business is headed.

It has been a wild month since Asha Sharma took the reins as Xbox CEO. While the team has been working to re-capitalize the brand and bring back some big-name exclusives, the narrative over the last week has taken a sharp negative turn. Between heavy rumors of Microsoft looking to sell off or close down certain first-party studios, console price hikes hitting shelves, and a massive rethink of what the next-gen hardware looks like, we wanted to figure out what’s actually going on with Xbox as a business.

In this episode, we break down the brutal economic realities hitting the industry. From the "RAM apocalypse" destroying console profitability to how free-to-play giants like Fortnite and Roblox have completely upended the old hardware subsidy model. We also look ahead at the next-generation "Helix" console, discussing whether Microsoft can actually deliver on its open Windows/Steam ecosystem vision if the hardware costs a grand, and what Sony's shift away from physical media means for the future of discs.

• [01:34] Podcast Introduction
• [03:17] The State of Xbox Leadership & Business Health A look at the whirlwind of changes under new Xbox CEO Asha Sharma, transitioning from the strategy of Phil Spencer and Sarah Bond, and balancing last year's record profits with the harsh reality of incoming corporate cuts.
• [06:42] Microsoft-Wide Headcount Reductions & AI Capital Spending Discussion on how massive investments into Artificial Intelligence infrastructure are forcing headcount reductions and belt-tightening across all of Microsoft, including Azure, Surface, and Xbox.
• [11:34] Studio Closures, Sales, and the Fate of Big IP Jez discusses rumors regarding potential studio sales or closures (such as Ninja Theory and Undead Labs) and how Microsoft is trying to find buyers to save projects like State of Decay 3 rather than flat-out canceling them.
• [16:37] Is Xbox Becoming a Subsidiary? The hosts debate the pros and cons of Microsoft potentially spinning off Xbox into a more independent subsidiary, drawing comparisons to how LinkedIn and Skype were handled.
• [22:55] 'Ramageddon' and the Broken Console Subsidy Model How skyrocketing RAM and component prices mean both Microsoft and Sony are losing hundreds of dollars per console. The hosts explain how the rise of casual, non-monetizing players on free-to-play games has broken the traditional model of selling hardware at a loss.
• [28:32] The Death of Physical Media & Disc-less Futures Analyzing Sony’s shift away from physical disc drives and predicting whether the next-generation Xbox Helix will completely eradicate physical discs due to supply chain economics.
• [30:54] Next-Gen Consoles: Power, Pricing, and Lifespans A realistic projection of what the PlayStation 6 and Xbox Helix will look like, predicting premium price tags ($1,000+) and a much longer cross-gen lifespan for the Xbox Series X/S.
• [34:58] Xbox Helix: Open Windows Platform vs. Closed Box Jez outlines the original plan for Helix to function as an open Windows device supporting Steam, and how Microsoft's new Chief Strategy Officer, Matthew Ball, is rethinking that approach due to the financial risk of players buying the hardware but only spending money on Steam.
• [43:31] Grandfathering the Series X/S Family Exploring the possibility of the next generation skipping clean architectural cut-offs, instead grandfathering the Series S and Series X as budget tiers alongside the premium Helix.
• [52:12] The Unsustainable Cycle of AAA Game Development Zach and Jez express frustration over 6+ year development cycles, ballooning West Coast production budgets, and why smaller global studios (like Bloober Team) are building games more efficiently.
• [57:35] Code Name 'Positron': Xbox Disc-to-Digital Tech Jez details a leaked upcoming platform feature that allows users to insert a physical disc once, permanently claim a digital license to their Microsoft account, and only lose it if that physical disc is registered by someone else.
• [01:04:12] Redemption of the 2013 Xbox One Vision A retrospective on how the highly criticized 2013 Xbox One vision (all-digital, heavy DRM, licensing pools, multi-media focus) was actually correct, just poorly messaged and ahead of its time.

Have a question you want us to answer on the podcast? Send it to us at [email protected]

Hosts:

• Jez Corden
• Zac Bowden

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Xbox is celebrating it's 25th anniversary this year, something that's easy to forget within the deluge of seemingly bad news right now. While they've already announced the snazzy Xbox Series X25 as a homage to the original Xbox, I do wonder if there will be more for fans that doesn't include laying down a wedge of cash. Something not unlike the Xbox Year in Review but for our entire time with Xbox.

Well, we needn't wait to see if Xbox has such a thing in store, because the folks over at True Achievements have done it again with its #Xbox25 Milestones tool. Simply click here to be taken to True Achievements and link your Microsoft account, and you'll see all of your stats in one neat timeline and infographic from the start of your journey with the Xbox 360 (when achievements were first introduced).

A blast from MY past

The True Achievements #Xbox25 Milestone infographic is displayed within an Xbox 360 Blades dashboard skin for maximum nostalgia, and is a really cool reminder of my own journey with the Xbox ecosystem.

I never actually owned an OG Xbox myself, and was staunchly PlayStation up until my 4-year-old (at the time) decided to put around 7 discs into my PlayStation 3 at once, rendering it overfed and useless.

My infographic reflects this: the Xbox 360 launched in 2005, but I didn't unlock an achievement on it until this incident in 2012. At the time, because the PS3 had a Blu-ray player, it was cheaper to get a second-hand Xbox 360 instead, and I never looked back.

I'm also reminded that the first game I 100% completed on Xbox was Skylanders: Spyro's Adventure in August 2013. So, obviously, I'll be among the many excited for this to become a backward-compatible title, if such a thing is possible!
Would love to know your guys most interesting stats from the Xbox 360 era up until now, leave a comment below with your results or jump into our subreddit (link below) and share your own infographics!

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Xbox is having major changes, slated to go live in full this Monday from what we've heard.

Xbox CEO Asha Sharma has been signalling for weeks that Xbox's studios need a "reset." As Microsoft's gaming empire has struggled in the new economy, Xbox is pursuing a variety of cuts, sell-offs, and potential team mergers in order to reduce costs. Studios like Undead Labs, Double Fine, Compulsion, and others have reportedly been in negotiations with Xbox about what their futures' look like, and for some, that future might be bleak in the short term.

The Verge reported that one of those studios up for negotiations was Arkane Studios, currently working on Marvel's Blade. Arkane is known for Dishonored and Death Loop, but has struggled to find its footing arguably under Microsoft. Blade was a chance to change that, but The Verge's reporting suggested that Microsoft was actually considering closing the studio.

This latest update suggests that Microsoft may have found an alternative path.

Spotted by Timur222 on X early this morning, it seems that MachineGames co-founder and studio director Jerk Gustafsson has taken over leadership of Arkane Studios. Arkane's president, Leonard Bendel, has resigned. The leadership change over happened a few days ago, on June 30th, according to a legal notice on French enterprise information site Pappers.fr.

Indeed, at least from my end, I've heard there's no plans to actually end development on Blade, although there's clearly some major potential restructuring going on here.

Arkane is based in France, with MachineGames based in Sweden. Microsoft is investing in MachineGames following the success of Indiana Jones, but also on the basis of the popularity of the Wolfenstein franchise. Indeed, Microsoft is actually developing a TV show based on Wolfenstein with the Fallout TV producers for Amazon — which fits heavily into Asha Sharma's trans-media vision for Xbox. Wolfenstein 3 is in production to that end, according to our sources, with the goal of the TV show and game complimenting each other Fallout TV-style.

What this leadership change means for Arkane overall remains to be seen. Xbox is expected to join Microsoft in general with broad cuts from as early as Monday next week. Every studio and team is likely to be impacted in some form, as are teams across Windows, Azure, and so on more broadly.

Could this leadership change signal that Arkane is going to merge with MachineGames to forge a bigger overall studio? Is Jerk Gustafsson being promoted across with the intent of the studios remaining separate? It's hard to say for sure right now. Given the holiday weekend in the United States, I doubt we'll be able to get comment from Microsoft in the near term.

In any case, I'm choosing to take this as a positive sign for Blade and Arkane, despite rumors of its potential closure.

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Hideo Kojima, I'm sure, needs no introduction. He rose to fame as the creator of the Metal Gear Solid franchise before leaving Konami to establish his own independent studio, Kojima Productions, which has since gone on to create Death Stranding.

Another thing that needs no introduction is the long-rumored Xbox layoffs, restructuring, and everything that comes with them. While that could reportedly lead to studio closures and Microsoft pulling out of publishing agreements, as we've already seen with IO Interactive's Project Fantasy, there is at least one game that appears to have avoided the chopping block.

To say pulling funding for Kojima's OD would have been beyond idiotic is probably the understatement of the year. Then again, we live in a time where PlayStation has decided to abandon physical media, with Xbox seemingly poised to follow suit, so at this point I'm kind of at a loss and feel like just about anything could happen.

Fortunately, according to a new report from IGN, Kojima's OD is still safe. We actually heard about the game quite recently following the Xbox Games Showcase, when Entertainment Weekly published a full page of interviews and details regarding all things Xbox, and within that, it also included some words from Kojima that gave us a few fresh details. Nothing major, mind you, but enough to confirm the game is progressing well, and perhaps more importantly, that Xbox CEO Asha Sharma remains fully behind the project.

We've also heard reports that Xbox isn't actually reducing its overall investment in games. Instead, it's becoming far more selective about where that money goes. Here's what Xbox told Bloomberg:

"[Xbox is] taking a fresh look at where we invest so we're focusing on our highest priorities... We're not reducing our overall investment in games. We expect to invest about the same in content as we did last year. What's changing is where we're investing and the kinds of projects we're backing."

Despite being a bit of a wimp when it comes to horror games, I'll definitely be keeping an eye on OD. It is Kojima after all, and I'm glad it's reportedly managed to survive the Xbox funding chopping block. With that said, let me know your thoughts in the comments below, and as always, be sure to take part in our poll!

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As the dust settles after the Xbox Showcase and Summer Game Fest, I began reflecting on the games I checked out. One thing became increasingly apparent to me over the past few weeks: the game I found myself thinking about most is Remedy's upcoming Control Resonant.

The Control franchise forms the core of the 'Remedyverse,' which shares canon with Alan Wake, FBC: Firebreak, and potentially Quantum Break too (if Microsoft ever gives up the IP ...).

The original Control passed me by somewhat. I felt like it started a bit slow and for whatever reason, the game never gripped me. But after playing Resonant, I went back to Control and its DLCs, and played it religiously to completion in a single weekend.

Remedy's worldbuilding is second to none, and while Control itself wasn't perfect, Remedy is once again taking some unexpected risks with its sequel, Resonant, by completely flipping the gameplay style.

I didn't want to write this preview until I had the context of the Control universe in full. The rabbit hole runs incredibly deep in this world of parallel dimensions, quantum phenomena, and warped aberrations. Mysterious conspiracies, fourth-wall bending tropes, and hefty Twin Peaks, SCP, and X-Files inspirations made Control an unexpected hit with myself.

It's with humility that I admit I underestimated Control Resonant's potential. After going hands-on and getting myself immersed in the harrowing responsibilities of the Federal Bureau of Control, Resonant is now one of my most anticipated upcoming Xbox games.

The Hiss is spreading

The main character of Control is Jesse Faden on paper, but I would argue that really it's the Federal Bureau of Control itself in a lot of ways. The FBC is a secret U.S. organization that tracks, researches, and contains anomalies. Fans of the X-Files and SCP Foundation will find familiarity immediately here, but Control's mysteries tend to revolve around extra-dimensional phenomena and entities above all.

In the base game, Jesse arrives at the FBC headquarters to find her brother, taken by the organization when they were children. As she arrives, she finds their HQ on lockdown, with hundreds of agents driven violently insane by a mysterious extra-dimensional signal.

Without giving away too much for those who haven't played, very early on, Jesse ends up as the director of the Federal Bureau of Control, and becomes endowed with a variety of telekinetic powers and extra-dimensional weaponry. Jesse also finds her brother, Dylan, although it's hardly what you'd call a happy reunion.

Indeed, in Control Resonant, you take command of Dylan Faden, almost directly after the events of the previous game — and the threats are bigger than ever.

The mysterious signal that drove the Bureau's agents violently insane has spread beyond The Oldest House HQ and into Manhattan proper. Known as The Hiss, it turns regular folk into disturbed, murderous shadows of their former selves. And in Resonant, it seems to stronger and more deadly than ever.

CONTROL Resonant works incredibly well with action RPG elements

Change of central protagonist meets change of central gameplay style in Control Resonant.

The Faden siblings were experimented on and researched by the FBC for their Parautilitarian powers, which essentially gives them command of some of the Control universe's extra-dimensional physics. They're super heroes in short form, and their abilities make up the basis of gameplay in both titles.

The original was similar to Quantum Break with its physics-bending abilities mixed with gunplay. Resonant leans far more heavily into kinetics and melee combat, giving Dylan a variety of close-quarters capabilities that, to me, felt more intuitive in motion than Resonant's predecessor.

Dylan wields an aberrant tool which can transform into a variety of melee weapon forms. In the demo, I only had access to a couple of abilities, but more unlock as you play much like in the original. The basic hack n' slash horizontal slashery felt good, but not as good as the two-handed heavy hammer which can flatten enemies into paste — although the wind up can leave you vulnerable.

It's hard to say for sure how Control Resonant will play out across the course of its campaign. I wonder how Resonant will approach aspects of the original proved controversial with some critics. I loved getting lost in the dimension-breaking mind-fuckery that was The Oldest House, but some felt the map layout was confusing and convoluted, hurting the game's pacing.

Resonant takes place in Manhattan, warped and decimated by The Hiss signal. Dylan Faden can platform and hover from the outset, making for rapid city traversal almost reminiscent of games like InFamous or Prototype, albeit in a more linear, focused fashion. Indeed, this isn't a sandbox title, but the urban spread makes for a wider playground than its predecessor's oft-claustrophobic office-style haunts.

My demo concluded with a boss battle against a gigantic (and rather haunting) disembodied head. It wasn't quite soulsian in delivery as so many melee-oriented action games seem to want to emulate these days. It felt old school hack n' slash to me, in a good way, with well-telegraphed attack patterns that were easy to follow even on the higher difficulties. It also felt like a marked improvement from some of Remedy's previous attempts at boss battles, that's for sure. It makes me wonder just how many of them will pop up throughout the campaign.

I didn't expect Remedy to be able to pull off this type of gameplay so confidently. No guns in sight, slashing and hammering enemies into particulates felt effortlessly fun, but what really grips me about Resonant and Control in general is Remedy's painstaking approach to world-building and strong character treatment.

Dylan is an interesting character. We don't see too much of him in the original overall. But growing up as a lab rat in a nightmare-inducing Federal black hole is going to make for uniquely interesting hang-ups.

Also, Control already left several dozen (or more) unansered questions in its wake. Who or what is The Board? What is The Hiss, and what does it want? If indeed, anything at all? Jesse and Dylan's relationship doesn't seem as clear cut as being mere siblings either ... and the very nature of the Federal Bureau of Control itself is dripping with intrigue and conspiracy.

And I love it.

Control represents one of the most immersive universes I've gotten into in recent years. I know I'm late to the party, and regret that my attention-addled brain couldn't push through the slower-paced early segments sooner. Control Resonant was the perfect antidote — thrown head-first into apocalyptic chaos from the outset, in a world dripping with as much mystery as it is style.

Do not sleep on CONTROL Resonant

Control Resonant is launching in a very busy month, with lots of high-profile games in its orbit. Onimusha, Blood of the Dawnwalker, Wolverine, Silent Hill: Townfall, Minecraft Dungeons 2 ... just to name a few.

I'm surprising myself to say that Control Resonant will be the first of the September heavy hitters I intend to play this year.

If you like the look of it, I implore you to give Control and its DLC expansions a real go beforehand. The world building for me is what really makes Control a standout title, even if some other aspects of it aren't quite at the level you might want from a fully priced title. As an X-Files kid, there's just so, so much to love here, and the clandestine Federal agency angle remains a timeless trope that really sparks the imagination. Whether you grew up with Twin Peaks, the X-Files, or SCP, or even creepypasta in recent years — Control is at its best when it taps into that contemporary mythos.

Resonant may give Control's industry-leading worldbuilding the gameplay it deserves to match.

CONTROL Resonant launches on September 24, 2026 on Xbox Series X|S and Xbox PC with Xbox Play Anywhere, PS5, and PC via Steam.

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Ah yes, one of Xbox's most acclaimed studios, known for games like Fallout: New Vegas, Grounded and The Outer Worlds, is shutting down... oh wait, never mind. It's just the Xbox rumor mill spinning up another baseless claim.

Forgive the sass, but it's becoming exhausting. Yes, I'm fully aware a major shake-up is underway at Xbox, and we all have every right to be on the edge of our seats. At the same time, though, I'd quite like to enjoy my hobby of gaming without feeling like the entire industry is crumbling around me every other day.

The initial rumor that Obsidian could be facing closure came from The Game Business. The rebuttal, however, came from none other than Bloomberg's Jason Schreier, whose reporting is not something to ever bet against.

Schreier took to BlueSky, stating: "Despite a report this morning, I can confirm that Obsidian is not in negotiations to avoid shutting down. Plenty of details are still up in the air surrounding the layoffs (picture will be clear on Monday), but Xbox is keeping Obsidian, according to people familiar with the situation."

For what it's worth, our sources have not once indicated that Obsidian was part of the cadre of studios facing closure or selling, but Schrier's info is all you need here to know that it's likely bogus info.

It seems we won't have to wait much longer to find out what actually happens at Xbox. On the one hand, I'm relieved that the uncertainty might finally be coming to an end. On the other, I'm already worried for my fingers as I frantically cover whatever unfolds. I might have to invest in one of those finger grip strengtheners in preparation ...

I will say, the fact so many people believed Xbox could potentially close Obsidian speaks volumes about the level of distrust currently surrounding the brand. Clearly something within Xbox needs to change. I just hope those impacted by whatever happens land on their feet, and that the damage isn't as severe as many are fearing.

With that said, do let me know your thoughts in the comments, and as always, be sure to take part in our poll below.

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Xbox Helix is in flux, and it's not entirely Xbox's fault, although it might be their parent company's.

The RAMageddon is here, and everything and anything with a chip in it has seen price increases. PlayStation, Xbox, even the iPhone is getting crazy price increases. The AI build-out is leading to inflated memory prices, as hyperscalers like Microsoft, Amazon, and Google race to become key players in the space.

For us, and for Xbox Helix, the downside (are there any upsides?) is price increases. The low-powered Xbox Series S has virtually hit price parity with the launch versions of the Xbox Series X and PlayStation 5.

It has huge RAMifications (lol, pun) for Xbox Helix, PlayStation 6, and consumer tech in general. Xbox is already supposedly rethinking the entire console business model as a result.

Rethinking Xbox Helix

So, what's going on with Xbox Helix? Recently, quotes from Xbox's new Chief Strategy Officer, Matthew Ball, specifically come from The Game Business, which has some great industry interview content you should definitely check out.

On the topic of wider hardware challenges, specifically around memory, Ball described a scenario where Xbox is effectively rethinking that Helix and the console model in general can actually be in the new economy.

"We are working very hard to rethink everything that we can about Helix, which is a console we are committed to shipping, and we are very cognizant of the ways in which we need to change as a company to make sure it is affordable, to make sure that it’s flexible."

"We are working hard to rethink what the console model can look like, not in an exclusionary way, but in an additive way. [...] But… we are working very hard to figure out the best way to navigate it for a way that works for everyone, that does not ask too much on players, but also doesn’t detract from other investments that we need to make."

So, affordability is top of mind for them. The Steam Machine recently dropped at over $1,000 despite its relatively modest power draw, lending credence to the idea that the PS6 and Xbox Helix could be even more expensive.

Memory costs are not expected to abate in the near future. Lenovo is suggesting that prices will never come down, and they may well be right, given the monopolistic nature of the industry. There's a lawsuit for price fixing going on right now, but I digress.

Previous Xbox President Sarah Bond suggested Xbox Helix would be a premium product. Xbox confirmed it would support installing games from other storefronts, like Steam. That it would also have backwards compatibility with all existing Xbox games, even if it'll be a Windows-first machine.

Herein lies the core dilemma for Xbox, in my view.

An open "Xbox" with Steam, etc. could be insanely expensive ...

How can Xbox subsidize an open "PC?" It destroys the affordability model typically associated with console gaming. Steam itself has said that, since SteamOS is "open" to other stores and isn't a closed box, they have to sell it as a PC.

Xbox is already running into this dilemma with the Xbox Series X|S to some degree. Games that are completely "free" like Fortnite are becoming increasingly prevalent as consumer spending sentiment is squeezed. Since Xbox is selling its hardware at a loss, they are subsidizing some of the biggest games in the world like Roblox and Fortnite, and not receiving a penny. More users than ever are playing free-to-play titles and not spending anything. So, Xbox selling hardware at a loss to this cohort represents effectively giving money away — so that Roblox, Fortnite, etc. can make money. That's obviously not sustainable.

This is why Microsoft and others are exploring ads to help subsidize the cost of the box, particularly when a user is defaulting to "free" games.

But extrapolating from that, what happens if, with Xbox Helix, players default away from Xbox altogether? It's unlikely casual players on Roblox and Fortnite are going to upgrade on day one anyway. But, with Steam on the box, there's a real risk here: What if users bought Xbox Helix, which Microsoft would traditionally sell at a loss, only to play via Steam or the Epic Games Store instead?

In that universe, you'd have to sell Xbox Helix for gaming PC prices. None of this seems viable if the intent is to make Helix affordable. Xbox CEO Asha Sharma has previously suggested the plan is to move ahead with an open PC-like Xbox, but I have to wonder how they plan to reconcile that with gunning for affordability.

PlayStation has already suggested that its PS6 will not be sold at a loss. The volumes that PlayStation typically sells consoles allow them to cut competitive deals for components like memory, but even Apple has had trouble keeping costs down lately. Apple has an absolute iron grip over its supply chain; Xbox is comparatively a smaller, far more niche player, even if it can wield its attachment to Microsoft as a bludgeon.

We saw the consequences of being a smaller player in the component supply chain with the Steam Machine, which is far more expensive than people were hoping for.

I can foresee Helix potentially moving in a few different directions here as a result, if not a combination of several.

Here are the possibilities and speculations summarized, and definitely take them as speculation.

• Xbox Helix could be very premium, costing over $1000, due to the memory rout that will continue for years.
• Microsoft will probably use some proprietary tech via AI super resolution and so on to squeeze more juice out of a "cheaper" build to keep costs down.
• Could Xbox Helix end up not being significantly more powerful to cut costs, but instead some kind of Xbox Series X+ or Xbox Series X Pro?
• "Niche" features like the disc drive will be removed to help cut costs.
• Could Microsoft ship a "cheaper" SKU without storage at all so some could leverage their existing Xbox Series X|S CF Express storage cards? Or other existing M2 / NVME drives they have lying around?
• Now that the hardware will be too expensive, Microsoft may be exploring closing the ecosystem again, removing Steam from the equation — otherwise it'll need to be gaming PC-priced.
• Microsoft could do some kind of "deal" with Epic Games Store or other third parties to share revenue. Steam obviously wouldn't do that (it doesn't need or want to help Xbox here.)
• Could Microsoft lock third-party stores behind a paywall or ads to keep the upfront Xbox costs down? (Although this would be monstrously unpopular, I feel.)
• Perhaps Xbox Helix will be closed out of the box, but let you bring your own Windows license to open it up.
• Microsoft will revive Banjo to help sell a billion units. Okay, maybe not on that one.

Xbox's 'X' factor?

Whatever Xbox does with its platform, there needs to be some kind of X factor here. The current Gen-X / Millennial cohort of gamers is aging out of gaming to some degree, and Gen-Z and younger seem to primarily want free-to-play experiences powered by things like Fortnite and Roblox.

The traditional console players have neglected the younger cohorts chasing older, more spendy gamers, and as a result, sacrificed a generation of compound nostalgia.

With Xbox CEO Asha Sharma's social media and platform expertise, I have to wonder if there won't be some kind of "fun" innovations down the line. Under Phil Spencer, Xbox has become a bit of a boring and traditional "software as a service" platform that outsourced the joy to game developers. But historically, platforms have offered a bit more than that — Steam and Nintendo have focused a lot on making their platforms fun and social, while Xbox and PlayStation have generally fled from such things.

One thing is for sure: I don't think Xbox can "win" by simply emulating PlayStation. They need an X factor, some kind of big innovation that cannot be ignored.

Having an Xbox console with Steam support sounds great on paper, but the economics demand hardware profits upfront — will people pay a premium for an Xbox-branded Windows PC? The RAMageddon has destroyed this opportunity potentially. Game Pass never became the X factor Microsoft hoped it would be; neither did Kinect, nor Xbox Play Anywhere, nor Cloud Gaming.

It'll be interesting to see how Xbox finds its way through this incredibly challenging time, where instant gratification is demanded, cheap and affordable mobile access has become the default, and forever-platform games have become dominant. I definitely don't have the answers. I hope Xbox does.

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