Senior Editor, News,GameDeveloper.com
July 17, 2026
4 Min Read
Logo via Game Developer / Image via CWA
I took a mid-week holiday on Thursday in the delusional hope of celebrating England's first World Cup final appearance in 60 years. Instead, I spent the day in silent mourning after we somehow managed to snatch defeat from the jaws of victory. Does it still sting? Yes. Did wandering around Manchester's scandi homeware stores and scoffing a chunky mortadella sarnie from my local Sicilian take the edge off? A little.
Usually, I'd try and draw parallels between a plucky England performance and the game industry's ongoing battle against mass layoffs. There's no chance of that this week. While the Three Lions wilted in the pressure chamber of Atlanta, Xbox workers continue to show strength and solidity in the face of adversity by fighting back against the thousands of job cuts across Microsoft.
Rallies were held in several locations this week, including Microsoft's headquarters in Redmond, in protest of the cuts. Labor unions in Canada and the United States have also taken legal action against the Xbox maker for allegedly mishandling the layoff process. Many of those impacted by the decision to oust 3,200 employees before the end of the fiscal year have also spoken out anonymously to underline the scale of the challenge facing those who remain.
Related:ZeniMax Online Studios leadership included in Xbox mass layoffs
There's plenty to chew on this week, so let's get into it.
Unions take legal action against Microsoft for allegedly mishandling Xbox layoffs
via Game Developer // Labor unions representing Xbox workers in the United States and Canada have filed unfair labor practice charges against Microsoft for allegedly mishandling its latest round of mass layoffs. The company is accused of engaging in "coercive actions" and making "unilateral changes" to employee contracts. Xbox claims it reached out to union leaders to begin effects bargaining and "remains committed" to that process.
ZeniMax Online Studios leadership to exit as part of Xbox cuts
via Game File // The Elder Scrolls Online (ESO) developer ZeniMax Online Studios has been shaken from top to bottom by the latest Xbox layoffs. After eliminating hundreds of roles assigned to studio offices in Maryland, Microsoft has also laid off studio head Joe Burba, ESO executive producer Susan Kath, studio game director Rich Lambert, and production director Ala Diaz.
Dead Space co-creator Glen Schofield retires
via Game Developer // Dead Space co-creator Glen Schofield is retiring from the frontlines of game development. The industry veteran also co-directed multiple Call of Duty titles including Modern Warfare 3, Advanced Warfare, and WWII.
Related:Pokemon Go owner Scopely 'reorganizes' Stumble Guys team
UK union launches free resource to decode video game writing contracts
via Game Developer // The Writers' Guild of Great Britain has unveiled a free 'good practice guide' for video game scribes plying their trade in the UK. The digital explainer aims to "demystify" the key contractual terms that video game writers might encounter when agreeing to undertake freelance or full-time work. A handy resource if you're looking for some extra know-how.
IWGB Game Workers union forms 'redundancy taskforce' to defend workers' rights
via Game Developer // The IWGB Game Workers branch is going further to ensure layoffs affecting workers in the video game industry are "legally, justifiable, and fair." The union has formed a new 'redundancy taskforce' to provide more support to members facing redundancy—something that increasingly feels like a forgone conclusion in the current climate.
'The entire thing is going to fall apart:' Inside the latest round of mass layoffs at Xbox
via Game Developer // Laid off Xbox employees are struggling to see a path forward for several key studios following another purge at the hands of parent company Microsoft. Multiple anonymous sources spoke out after being put to the sword to describe the chaos and uncertainty faced by many over the past two weeks. "The institutional knowledge that has been lost or will be lost completely as individuals leave the gaming industry altogether is staggering. Those that are left must be scrambling to pick up the pieces," said one person.
Related:Former Epic Games VP appointed Saber Interactive's chief business officer
GameStop CEO Says Physical Video-Game Sales Are ‘Irrelevant’ to Business
via Bloomberg // During a recent interview with Bloomberg TV, GameStop boss Ryan Cohen said Sony's decision to end physical video game sales in 2028 will be "totally irrelevant" to the retailer's business. "It doesn't matter at all," added Cohen, when asked about the shift away from physical media. It's a quote that's perhaps unsurprising given the chief exec's recent pledge to focus on gaming collectibles.
About the Author
Senior Editor, News, GameDeveloper.com
Game Developer news editor Chris Kerr is an award-winning reporter with over a decade of experience in the game industry. His byline has appeared in notable print and digital publications including Edge, Stuff, Wireframe, International Business Times, and PocketGamer.biz. Throughout his career, Chris has covered major industry events including GDC, PAX Australia, Gamescom, Paris Games Week, and Develop Brighton.
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