Microsoft is currently undergoing significant changes, including large-scale layoffs and studio sell-offs. Part of a corporate "reset." Recent developments confirm that studios Ninja Theory and Undead Labs are being sold, while Double Fine and Compulsion are becoming independent entities. However, the future of Arkane Lyon, the studio behind the long-anticipated Blade game, remains unclear as it enters a phase of "required consultation" with its local Works Council in France.

In the wake of significant layoffs at Xbox, a former developer from the Halo franchise has recounted an experience that highlights disconnect within the gaming industry's leadership. Dan Callan, who worked as a mission designer on Halo 4, took to Bluesky to share a story from a demo he presented for Don Mattrick, the then-head of Xbox. During the demo, as Callan showed the Mantis, a new mech featured in Halo 4, Mattrick posed an unexpected question regarding an entirely diffe