Gaming News Digest — July 8, 2026
Published:
Top news
Starfield — After Microsoft's "bloodbath," Starfield is no longer Todd Howard's golden child. ZeniMax is narrowing its focus to Fallout, Doom, and The Elder Scrolls, axing a fifth of the workforce and selling studios, while Starfield support gets dropped from the priority list. The future involves betting on proven classics under a hard austerity regime.
Microsoft — Microsoft admits Minecraft was a cash cow subsidizing other divisions. Now Asha Sharma makes Mojang report directly to her, and money is about to flow: Microsoft was losing to Roblox by underfunding Minecraft, so the plan is to turn it into a modern, competitive ecosystem. All announced games are safe.
Undead Labs — Undead Labs leaves Xbox, and State of Decay 3 may skip Game Pass. The studio officially splits from Xbox as part of a large reorganization, with development continuing under full funding, but independence puts the game's day-one subscription launch at risk. Fans now await the legal verdict.
Obsidian Entertainment — Obsidian Entertainment is cutting a quarter of its staff, 60-70 employees, including The Outer Worlds' art director. Most were laid off July 6, with more by year-end. Survival mode and Avowed expansions are still in production, while other games are on hold. Staff hope for clarity at today's meeting.
Double Fine — Double Fine and Compulsion Games are going independent again, thanking Xbox for it. After the biggest Xbox restructuring ever, the studios got their game rights back. Over 3000 staff will be cut, five studios sold or spun off. Double Fine and Compulsion are among them, walking away with their IP intact.
Game Pass — Game Pass subscriber numbers have dropped to 30 million, down from 34 million in February 2024 and 37 million in 2022. According to the Wall Street Journal, growth has stalled despite Xbox's focus on Game Pass and multiplatform releases. Activision Blizzard documents had projected 77 million by 2026 and 100 million by 2030.
Fallout — Bethesda is shifting focus to its biggest series: Fallout, Elder Scrolls, Doom, Quake, and Wolfenstein, after massive Xbox layoffs. Studio head Jill Braff told staff the old model of each studio going solo no longer works due to rising expectations and tougher competition. Arkane is leaving the corporation, and even id Software was hit by cuts.
id Software — Rumor: id Software has laid off 95 of 200 employees, including "most if not all" programmers, per 3D Realms founder Scott Miller. The studio behind DOOM, Quake, and the id Tech engine may lose core expertise. A 10-12 hour DLC for DOOM: The Dark Ages drops today, but George Broussard says "id is essentially gone," just a support team now.
State of Decay 3 — Undead Labs has been sold, and State of Decay 3 no longer has to launch on Game Pass. The sale removes the subscription requirement, with the new owner to negotiate separately. The buyer is TBA this summer. Alongside Undead, Xbox is parting ways with Ninja Theory, Double Fine, and Compulsion. The game hits PC (Steam), PS5, and Xbox Series in 2027 with text localization.
Cyberpunk 2 — Cyberpunk 2 stays strictly first-person, as creative director Igor Sarzhinsky confirmed that third-person view would break immersion and turn it into a different game. Despite fan requests, this approach doesn't simplify development: real-time non-linear scenes cost three times more than classic cutscenes. For CD Projekt RED, it's a deliberate choice for quality and deep immersion.
Obsidian — Chris Avellone believes Obsidian is still working on Avowed 2. The ex-creative director claims the sequel is far enough along that recent Xbox layoffs won't kill it. George Ziets is reportedly the lead writer, and the art style might change after the original art director Matt Hansen got cut. No official word yet.
No Rest for the Wicked — Moon Studios announced that their grim action-RPG No Rest for the Wicked has sold 2,000,000 copies. Despite a rocky launch full of bugs and performance issues, the devs turned it around with regular patches and content updates. The game is currently in Steam Early Access, with a full release on the way.
Epic — free & deals
Epic Games discounts — Today's Epic Games Store discounts include -85% on Zero Hour, -77% on Treasure Hunt: Secret's End, -75% on Hypnospace Outlaw, -70% on The Caligula Effect 2, and -65% on Crysis Remastered. These deals are available for a limited time.
Spotlight
Batman: Arkham Origins Blackgate - Deluxe Edition — Explore the grim halls of Blackgate Prison as Batman, unraveling conspiracies using stealth and gadgets in dynamic 2.5D action. This is a direct continuation of Arkham Origins, revealing darker chapters of the hero's past. Details
BepInExPack for The Last Stand: Aftermath — This modding framework allows players to tweak mechanics, add content, and take full control of the game. It's a must-have for those looking to customize their experience. Details
Threezero DLX AOE Lockdown figure — Fresh in-hand photos of the Threezero DLX AOE Lockdown figure have been shared by collectors, showing the figure from all angles. The detailed shots highlight the craftsmanship of this collectible. Details
Elon Simulator 2019 — In this dynamic shooter, you play as Starman on a journey to Mars, shooting or dodging objects to survive. Different items cause varying damage, making some far more dangerous than others. Details
Ruthless Water — Survive in an abandoned mansion by exploring dark locations, hiding from a stalker, and using items to survive. The game features dynamic lighting, unpredictable enemy behavior, and an unexpected finale. Details
