Xbox cuts 3,200 jobs 🎮 Red Rover layoffs 💼 Scopely backs Studio AuKnow 💰

Top Stories

Xbox restructures: ~3,200 roles cut across FY27, four studios move to new ownership (4 min read)

Xbox will eliminate ~3,200 roles across FY2027 (1,600 immediately) and move four studios — Compulsion, Double Fine, Ninja Theory, and Undead Labs — to new ownership, citing margins 3-10x below peers. Management flattens to 3-5 layers; announced first-party games are unaffected. (Xbox Wire)

Enginefall developer Red Rover Interactive is making layoffs (3 min read)

Red Rover Interactive is laying off an undisclosed number of employees across its Newcastle and Oslo offices. The studio, formed by veterans from Funcom, Bohemia Interactive, and Lockwood Publishing, has raised $20 million since launching three years ago, including a $15 million Krafton-led round in 2024. The restructuring aims to place the company on "sustainable footing" as it advances development on Enginefall, its player-driven crafting shooter currently slated for 2026 and wishlisted by over 300,000 Steam users. (Game Developer)

Saudi Arabia-owned Scopely continues its mobile investment spree with Umamusame: Pretty Derby director's new company Studio AuKnow (2 min read)

Scopely, owned by Saudi Arabia's Savvy Games Group, made a strategic investment in Studio AuKnow, a new mobile studio founded by Takuma Akitsu, former director of Umamusume: Pretty Derby. The move is part of Scopely's continued investment in the Japanese market, following its $3.5 billion acquisition of Niantic in 2025. Studio AuKnow's team includes developers who worked on Pokémon Pocket, Onmyoji, Final Fantasy VII Rebirth, and Sonic World Adventure; the studio is currently developing a new mobile IP and hiring across multiple roles. (Eurogamer)

Business & Finance

What kind of PS6 could justify a $1,000 price tag? | Opinion (8 min read)

Sony's next-gen PS6 is expected to cost over $1,000 at launch due to component pricing pressures, more than double the PS5's launch price. An asking price that high requires hardware that's a significant departure from current gen to justify the cost to consumers. (GamesIndustry.biz)

Studios & People

New studio //18.bravo is aiming for a "radically different approach" to game development (2 min read)

Robert Bowling, former Infinity Ward creative strategist, launched //18.bravo, a new LA studio rejecting live-service models. The studio ties leadership pay to employee success, shares profits with external talent, and commits to open-sourcing assets and legal frameworks if it closes. (GamesIndustry.biz)

Policy & Labor

Steam Rules Must Change, Developer Says, After Players Praise Bitesize Game But Are Allowed to Refund It Anyway (2 min read)

A developer of the short indie game Paddle Paddle Paddle criticized Steam's refund policy after experiencing a 21% refund rate despite 90% Very Positive reviews. The developer noted players completed and praised the game within Steam's two-hour refund window, calling for policy changes to protect shorter experiences. (IGN)

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