Microsoft’s July 6 Xbox reset moves Double Fine and Compulsion back to management as independent studios, while Ninja Theory and Undead Labs enter new-ownership terms. The Verge reports 4,800 Microsoft layoffs, including about 1,600 Xbox employees.
GameObserver reports that PlayStation Studios removed most PC mentions from its official site copy, adding to speculation about a narrower Sony PC port strategy.
PC Gamer reports that at GDC 2026 on March 12, Rob Pardo urged executives to slow the industry's layoff cycle, arguing that the team behind a successful game is often more valuable than the game itself because it is the team that can build the next one.