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Obsidian Entertainment Encountering 25 Percent Workforce Cuts Resulting from Xbox Job Cuts

**Major Job Cuts at Obsidian Entertainment as Xbox Restructures**

In a significant reorganization effort, Xbox has revealed extensive layoffs impacting several departments within the company, including a considerable number of employees at Obsidian Entertainment, the well-regarded studio recognized for titles like *Avowed* and *The Outer Worlds*. Sources suggest that around 60 to 70 staff members, representing about one-quarter of the studio’s personnel, have been affected.

The positions lost span a variety of fields, including producers, artists, designers, programmers, writers, and quality assurance testers, many of whom were in senior roles within the studio. This downsizing is part of Xbox’s larger initiative that involved a reduction of approximately 1,600 jobs throughout the organization.

Cuts specific to Obsidian were carried out mainly on July 6, with some workers informed that their roles would be terminated later in the year as part of ongoing workforce reductions. This sizable talent exit raises worries about the continuity of ongoing projects, as the remaining employees have yet to receive clear direction on how to move forward considering the high number of titles in development.

Nonetheless, development on *Grounded 2*—currently in early access—and the forthcoming DLC for *The Outer Worlds 2* is anticipated to proceed. However, the future plans from the studio seem uncertain, as employees await further details in an all-hands meeting set for July 7.

Obsidian Entertainment boasts a rich legacy, having been founded in 2003 by ex-employees of Black Isle Studios. Over the last twenty years, the studio has built a reputation for crafting beloved games, including *Star Wars: Knights of the Old Republic II*, *Fallout: New Vegas*, and *Pillars of Eternity*. Since joining Microsoft in 2018, Obsidian has launched several significant titles, enhancing Microsoft’s gaming offerings with projects aimed at diverse player interests.

Recent releases from Obsidian, such as the narrative-driven *Pentiment*, which received a Peabody Award and a Game Developers Choice Award for Best Narrative, along with the critically lauded *The Outer Worlds*, showcase the studio’s dedication to quality storytelling and innovative gameplay. However, the current layoffs present a serious obstacle to sustaining progress on future projects.

As the situation develops, the gaming community and industry analysts will be keenly observing the consequences of these layoffs for both Obsidian Entertainment and Xbox’s strategic direction in the competitive gaming market.

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Xbox Dismisses FanFest Coordinator Three Months Following the Revival of Xbox FanFest

### The Effects of Job Cuts on Microsoft’s Xbox FanFest and Chris Munson’s Legacy

Earlier this year, Microsoft rekindled excitement within its gaming community by reintroducing Xbox FanFest in Los Angeles as part of its summer 2026 gaming showcase. However, the festivities were quickly clouded by significant layoffs at the firm, including the exit of Chris Munson, the visionary behind the FanFest initiative.

#### Chris Munson’s Career at Microsoft

Chris Munson became part of Microsoft in 2010, joining the Halo marketing team. Over nearly 16 years, he played a key role in several major projects, including games like *State of Decay* and new intellectual properties, while also cultivating sports partnerships that delivered billions in impressions, engagements, and revenue for the organization. Sadly, on July 6, 2026, Munson was one of 1,600 workers impacted by Microsoft’s latest mass layoffs.

In a touching message posted on LinkedIn, Munson looked back on his career: “After 15 1/2 years, I was impacted by the layoffs at Xbox today. End of an era. […] While I will take some time to reflect and recharge, I will be eager to be a part of something even bigger.” His message captures both the significance of his contributions and a dedication to future pursuits in gaming and culture.

#### The Importance of Xbox FanFest

Launched in 2015, Xbox FanFest was created to give Xbox fans a chance to connect directly with the company during key events, such as E3 and Gamescom. This initiative enabled fans to interact with pivotal figures in Xbox, like Major Nelson and Phil Spencer, nurturing a sense of community and direct engagement while Microsoft aimed to strengthen its consumer relations.

Following a brief break, FanFest was brought back in 2026 during Xbox’s 25th-anniversary celebrations. New Xbox CEO Asha Sharma highlighted the event’s significance in reestablishing ties with the community, stating, “In my first month, I heard loudly that our community values Xbox FanFest. […] We decided to return it to LA to honor the players who’ve been with us throughout the years.”

#### Commemorating 25 Years Amidst Challenges

The 2026 showcase showcased a unique highlight—every attendee in the live audience received a complimentary translucent green Xbox Series X, marking the 25th anniversary of both Xbox and *Halo*. However, this celebratory mood was contrasted by the reality of extensive layoffs affecting the organization.

As Microsoft realigns for the future, many in the industry are observing closely, aware of how these changes may impact company culture and community involvement. The remaining Xbox FanFest 2026 is set to feature additional events globally, focused on uniting fans and celebrating the brand’s rich legacy.

#### Looking Forward

Chris Munson’s exit signifies the conclusion of an era for Xbox FanFest, a project he not only originated but also developed into a fundamental part of the Xbox community experience. The gaming industry is keenly awaiting Munson’s next move, acknowledging that his vision for delivering value in gaming and community continues to thrive despite recent hurdles. As the gaming landscape evolves, events like Xbox FanFest will remain vital for players, prompting reflections on both past successes and future opportunities.

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“Character Progression in ‘You and I Are Polar Opposites’: The Significance of Faux Eyelashes and Walking the Streets in Actor Readiness”

# You and I Are Total Contrasts: An Exploration of the Hit Anime and Its Voice Performers

**Introduction**

“You and I Are Total Contrasts” has swiftly become one of the most acclaimed anime series of the year. Adapted from the cherished manga of the same title, the show highlights the poignant and often comedic subtleties of teenage romance. As excitement for its upcoming second season escalates, Kotaku interviewed the voice performers of the series, Sayumi Suzushiro (the voice of the outgoing Suzuki) and Shogo Sakata (the voice of the reserved Tani), to glean insights into their experiences and the essence of the show.

**Overview of the Series**

The narrative of “You and I Are Total Contrasts” centers on the differing personalities of its primary characters. Suzuki, a vibrant extrovert in her latter high school years, boldly proclaims her affections for Tani, a deep introvert. Their contrasting views on life and love generate a captivating dichotomy that strikes a chord with viewers. This authentic slice-of-life tale delves into the awkwardness, humor, and tenderness of teenage dating, a theme that has greatly enhanced the series’ vast popularity.

**Background and Cast Experiences**

Both Suzushiro and Sakata were not surprised by the series’ acclaim, given the enormous fanbase of the original manga in Japan. Suzushiro confessed that during her audition, she avoided diving into the manga to prevent disappointment in case she wasn’t chosen for the role of Suzuki.

Conversely, Sakata had been a follower of the manga since its beginnings, eagerly consuming each new volume. His enthusiasm for securing a role in the series was further amplified by his resolve to reread the manga prior to auditioning, allowing him to forge a deep connection with his character.

**Character Wardrobes and Personal Reflections**

A striking feature of “Total Contrasts” is the characters’ wardrobe selections, which have won praise from fans. Suzushiro noted that whenever Suzuki donned a distinctive outfit, she made an effort to replicate it in the recording booth to fully embody the character. In contrast, Sakata realized that he shared traits with Tani, especially concerning fashion; similar to his character, he grew to appreciate a more understated wardrobe.

**Method Acting and Character Immersion**

The journey to embodying a character for voice acting can be complex, particularly for those with intense energy levels. However, Suzushiro felt a profound connection to Suzuki, which eased her portrayal. An example of this occurred during a scene in the first episode where Suzuki sports fake eyelashes. This experience was novel for Suzushiro, making it unforgettable.

Sakata’s approach included wandering around the city to tap into Tani’s reflective nature, pondering what experiences an introvert like Tani might face in various environments. This immersion enabled him to relate to his character more, enriching his performance.

**Collaborative Dynamics**

Having collaborated before, the chemistry between Suzushiro and Sakata was apparent in their recordings. They devised a strategy to face each other while delivering their lines, fostering a natural flow of conversation and heightening the authenticity of their exchanges.

**Conclusion**

As someone who opted to bypass the manga to relish the surprises of the anime, it’s easy to appreciate the lively, cheerful energy of “You and I Are Total Contrasts.” The genuine representation of Suzuki and Tani’s developing relationship, along with their unique fashion journeys, captivates viewers. With Season 2 now available on Crunchyroll, fans are eagerly anticipating the next installments in this delightful tale of young love and exploration.

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Overview of Xbox’s 25+ Game Development Studios and Their Initiatives Set for 2026

# Current Situation of Xbox Game Studios: An 2026 Summary

In 2020, the Xbox game studios’ environment was lively and varied, presenting numerous developers that supported the Xbox ecosystem. Since that time, a sequence of significant events, such as acquisitions, game releases, and major layoffs, have altered the organization of Xbox Game Studios. This article offers a comprehensive overview of each studio currently part of the Xbox family, including those that have been spun off or closed.

## Turn 10 Studios – Established in 2001
Turn 10 Studios, recognized for its work on the *Forza Motorsport* series, stands as one of the longest-established studios within the Xbox family. Nonetheless, substantial layoffs in 2025 considerably affected the studio, leading to the reported cancellation of a new *Forza Motorsport* installment. Turn 10 has now shifted mainly into a support position for Playground Games and the *Forza Horizon* series.

## Rare – Purchased in 2002
Rare is another enduring Xbox studio centered on the live-service game *Sea of Thieves*. In 2025, the studio underwent layoffs and had its highly ambitious project *Everwild* scrapped, altering Rare’s future endeavors.

## Halo Studios (previously 343 Industries) – Established in 2007
Following Bungie’s departure in 2007, 343 Industries was formed to oversee the *Halo* franchise. In spite of a challenging history characterized by layoffs in 2023 and 2025, the studio is currently focused on completing *Halo: Campaign Evolved*, a remake aiming for a July 2026 launch.

## The Coalition – Established in 2010
Originally known as Zipline, The Coalition assumed control of the *Gears of War* series after Epic Games sold the rights to Xbox. The studio is preparing for the release of the upcoming chapter, *Gears of War: E-Day*, scheduled for October 2026.

## Mojang Studios – Acquired in 2014
The acquisition of Mojang, the minds behind *Minecraft*, represented a crucial step for Xbox that has paid off, allowing the game to remain multiplatform. Mojang continues to flourish, playing a vital role in one of Microsoft’s top franchises, further enhanced by a movie release in 2025.

## Compulsion Games – Acquired in 2018 – Spun off in 2026
Compulsion Games, known for *South of Midnight*, was among several acquisitions made during Xbox’s pre-pandemic expansion. In July 2026, it was revealed that Compulsion would separate from Xbox, becoming an indie studio while keeping its intellectual properties with financial backing for the transition.

## inXile Entertainment – Acquired in 2018
Still integrated within Xbox Game Studios, inXile is actively working on *Clockwork Revolution*, a first-person RPG expected to be released in 2027, following the successful launch of *Wasteland 3* shortly after its acquisition.

## Ninja Theory – Acquired in 2018 – Sold in 2026
Best known for *Hellblade* and its sequel, Ninja Theory has changed ownership as part of the restructuring led by CEO Asha Sharma. The studio will finalize the development of *Senua* before moving away from Xbox.

## Undead Labs – Acquired in 2018 – Sold in 2026
Undead Labs, celebrated for the *State of Decay* series, has similarly been sold amid the 2026 restructuring. Its forthcoming title, *State of Decay 3*, is expected to launch in 2027.

## Obsidian Entertainment – Acquired in 2018
Obsidian continues to be a treasured asset within Xbox, known for producing high-quality games such as *Fallout: New Vegas* and more recently *Avowed* and *Outer Worlds 2*.

## Playground Games – Acquired in 2018
Another significant player that emerged during the 2018 acquisition wave is Playground Games, which successfully launched *Forza Horizon 6* in 2026. A reboot of the *Fable* series is anticipated to arrive in February 2027.

## The Initiative – Established in 2018 – Closed in 2025
The Initiative was assigned the task of revitalizing the *Perfect Dark* franchise but was disbanded in 2025 amid a widespread reduction across Xbox.

## Double Fine Productions – Acquired in 2019 – Spun off in 2026
Renowned for its cult classics, Double Fine is reverting to indie status, retaining its intellectual properties and gaining independence following the release of *Psychonauts 2*.

## World’s Edge – Established in 2019
Overseeing the *Age of Empires* franchise, World’s Edge does not directly create games but coordinates with external studios to manage new releases in the series.

## Blizzard Entertainment – Acquired in 2023
With the acquisition of Activision Blizzard, Xbox

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Game Pass Subscribers Allegedly Drop to 30 Million

**The Fall of Xbox Game Pass Subscribers: A Comprehensive Examination**

Xbox Game Pass, the subscription offering from Microsoft that has been likened to Netflix for gaming, has recently experienced a notable drop in subscribers. Reports indicate that the service has decreased to merely 30 million monthly paying users, down by 4 million from the previous year. This decline prompts inquiries about the service’s growth path, particularly considering Microsoft’s bold internal forecasts.

Per a report from *The Wall Street Journal*, Microsoft initially projected that Game Pass subscriptions would hit roughly 77 million by this year. This figure surfaced during legal discussions related to Microsoft’s takeover of Activision Blizzard, where internal documents disclosed the company’s aspiration to exceed 100 million subscribers by 2030. Such ambitions were probably shaped by acquisitions of game studios and robust collaborations with third-party publishers.

Nonetheless, by 2024, Microsoft was reported to have reached only 34 million subscribers. Comments from former Xbox President Sarah Bond underscored this stagnation, paving the way for a series of price hikes and revisions to the Game Pass library, featuring significant titles like *Call of Duty*. Regrettably, a price increase to $30 a month for Game Pass Ultimate coincided with the launch of *Call of Duty: Black Ops 7*, which was not well received by consumers. This resulted in higher churn rates, as numerous subscribers chose to exit the service after the heightened costs and unsatisfactory game quality.

Matthew Ball, Microsoft’s chief strategy officer, admitted earlier this year that the price increase led to the loss of “millions of subscribers.” Moreover, other reports suggested that the release of titles such as *Black Ops 6* on Game Pass had severe financial consequences, with an estimated loss of $300 million in potential revenue due to the same-day release strategy.

In light of these difficulties, new Xbox CEO Asha Sharma swiftly took steps to modify the strategy. Lowering the monthly subscription fee and excluding new *Call of Duty* releases from the service at launch were among her first executive measures. While these adjustments may help halt the decline of subscribers, they indicate that Game Pass might have reached its subscriber limit, at least for the moment.

The path of Xbox Game Pass demonstrates the intricacies of subscription services within the gaming sector. Initial growth can be exhilarating, but sustaining momentum necessitates ongoing innovation, value for customers, and strategic insight in a continually changing market. As Microsoft’s Game Pass strategy evolves, its future will hinge on balancing content availability, pricing, and subscriber contentment.

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Katsuhiro Harada of Tekken Critiques the Practice of Evaluating Games Solely Based on Sales Figures

I don’t think anybody reading these hallowed pages really judges games by their sales figures, but it’s nice to hear that perspective affirmed by no less a Legendary Fightguy than Katsuhiro Harada, the former face of Tekken. Out of the blue, Harada has posted some very nice words about Dark Souls kingpin and FromSoftware president Hidetaki Miyazaki, noting that Miyazaki came late to game development and worked on a bunch of less praised or successful games, before landing it big with Souls.

Harada (who is currently CEO of SNK VS Studio) makes the obvious but eminently repeatable argument that these older, less celebrated projects paved the way for the Souls series. He accuses people who think disparagingly of them of being unable to “appreciate the journey or the growth of the developers themselves”. It’s not clear who these statements are aimed at, exactly, but Harada does add that he’s “NOT talking about the fan community”. The whole thing sounds like a rebuke to publisher moneymen who only think as far as the next earnings call.

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Original Founder Asks Xbox CEO: ‘What Is the Cost for Arkane and Blade?’

**Xbox’s Recent Judgement Day: The Ambiguous Destiny of Arkane Lyon**

In a recent development, Xbox’s restructuring initiatives have fostered a disquieting environment within the gaming sector, especially concerning the future of the cherished studio Arkane Lyon. The developer, recognized for its captivating titles like *Dishonored* and *Prey*, is currently engaged in discussions with its employee council regarding the possibility of closure or sale. This situation arises in the context of considerable layoffs within the organization, casting a pall over the creation of Arkane’s forthcoming game, *Marvel’s Blade*.

Founder Raphael Colantonio, who departed Arkane in 2017 to create WolfEye Studios, has openly reacted to the news of layoffs via social media, humorously questioning the feasibility of acquiring Arkane. His playful comment on X, where he queried Xbox CEO Asha Sharma, “how much? I’m asking for a friend,” highlights the evolving dynamics between developers and the community under Xbox’s stewardship.

Colantonio’s ties to Arkane run deep; he co-directed *Dishonored* and led *Prey*, establishing his legacy with critically lauded titles. His new endeavor, WolfEye Studios, has already delivered *Weird West*, showcasing his persistent impact on the immersive sim genre. Nevertheless, if he were genuinely interested in buying Arkane, discussions would likely occur behind closed doors rather than unfold on social media.

The announcement of *Marvel’s Blade* in 2023 elevated hopes for enthusiasts of comic adaptations, yet its recent absence from major exhibitions has sparked conjecture regarding the game’s development progress. Chief content officer Matt Booty suggested that the game might debut at a future showcase, but reports suggest that its production has encountered delays and budgetary challenges, requiring an external firm’s assistance to complete the project.

As Arkane Lyon traverses this tumultuous period, the management’s interaction with the Works Council signifies a mandated discussion aimed at exploring various strategic pathways. This intricate and often protracted process might lead to layoffs, leadership alterations, or even the studio’s shutdown—scenarios that loom over Arkane’s future. Importantly, Arkane Austin previously faced closure during an earlier layoff wave, raising the stakes for its sister studio in Lyon.

The possible dissolution of Arkane Lyon would represent not only a considerable setback for Xbox but would also reverberate throughout the gaming industry, marking a sorrowful conclusion for a studio that has provided players with unforgettable, immersive experiences. As the gaming community anticipates clarity, the destiny of Arkane Lyon remains enveloped in ambiguity, mirroring the broader hurdles confronting Xbox in its restructuring efforts within a shifting market landscape.

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“Fallout: London Modders Report Progress on Next Game Despite Delays in DLC”

Though Last Orders, the second DLC for massive Fallout 4 mod Fallout: London, is taking longer than Team FOLON originally planned, the modders have revealed that their next game is running ahead of schedule. The two are being worked on at the time as the group use their ambitious building of a British apocalypse atop Bethesda’s Boston as a springboard into establishing themselves as a professional indie studio.

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Xbox Layoffs Impact The Elder Scrolls Online Team, Resulting in Adjustments to Game Roadmaps

### The Effects of Recent Layoffs on The Elder Scrolls Online

The Elder Scrolls Online (ESO) has encountered considerable difficulties following significant layoffs throughout Xbox, which encompasses Zenimax Online Studios, the developer responsible for it. Reports suggest that the repercussions on the ESO team have been profound, with numerous employees receiving layoff notifications soon after the announcements were issued.

#### Layoffs and Their Scope

Sources communicating with Kotaku indicate that Zenimax Online Studios has been heavily impacted by these reductions. More than 20 former employees have openly discussed their experiences on LinkedIn, emphasizing long service records, with some surpassing ten years with the company. Although specific figures remain unverified, estimates imply that potentially half of the development team might have felt the effects.

The community at Zenimax has voiced uncertainty over how the game will be maintained with such a diminished workforce. The Elder Scrolls Online, active since 2014, has cultivated a strong following and generated considerable revenue, reportedly achieving $2 billion in total, alongside an active player base of 24 million.

#### Upcoming Changes for ESO

In a recent forum post, community manager Jessica Folsom reassured players of the team’s dedication to the game but admitted that the previously detailed roadmap for upcoming updates would require adjustments. She mentioned the intention to take the necessary time to reassess the project and provide a clearer timeline for the future.

The game has launched eight major expansions, with the latest, Gold Road, released in June 2024. ESO has transitioned to a seasonal model, with Season 2 set to debut soon, showcasing the ongoing evolution of the game despite internal obstacles.

#### Past Challenges and the Road Ahead

These recent layoffs are not the first for the ESO team; reductions last year resulted in the cancellation of an internal project referred to as “Project Blackbird.” Additionally, employees have established unions advocating for equitable negotiation terms regarding layoffs, concentrating on job security and benefits for affected workers.

In an official message sent to employees at Bethesda and Zenimax, the restructuring was presented as a strategy to foster long-term growth, with intentions to focus on major franchises like The Elder Scrolls, Fallout, and Doom. Existing commitments for updates, including the upcoming ESO Season 1 update, will move forward as planned, though future content remains without clarification.

#### Summary

The transformations and layoffs experienced by Zenimax Online Studios reflect wider trends in the gaming sector as companies recalibrate their operations amid financial challenges. The community of The Elder Scrolls Online holds onto hope for the game’s future, as the team navigates these hurdles to keep delivering content to its loyal player base.

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ZeniMax’s Shift to Major Series Production Amid Xbox Reductions Reportedly Does Not Signal the End for Doom, Quake, and Wolfenstein

Xbox have officially announced the scale of the mass layoffs and rejigging of their studio lineup which have loomed on the horizon for the past couple of weeks. While Double Fine, Compulsion Games, Ninja Theory, Undead Labs, and Arkane all face futures outside of Xbox, the cuts and changes have also affected how a number of studios remaining under the Microsoft banner will operate going forwards.

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