After a week of new games, here are more games
Hey, readers.
The week after not-E3 is usually a quiet one, from my experience. It’s the week when media embargos start to lift and previews from the various outlets get published, so it’s a slow roll of information about games that the public learned about the week prior.
If you want to know more about games like Alien: Isolation 2, Resident Evil Veronica, Stranger Than Heaven, or Tomb Raider: Legacy of Atlantis, there’s some excellent coverage out there.
Fun fact: The June 2026 Nintendo Direct was the most-watched presentation from Summer Game Fest week! Even with all the debates around the Ocarina of Time remake trailer, Nintendo still does the numbers.
And speaking of upcoming games, Steam Next Fest has returned, so if you aren’t overwhelmed by choice, you can try literally thousands of demos for upcoming Steam titles. Browse around and see if any games you’ve never heard of pique your interest!
We’ll only be doing one big news story today, because it’s a big one. And remember, you too can participate in this newsletter by submitting any questions about video games and the games industry for me to explain to you in a future issue!
This issue will fill you in on:
The fates of three Xbox studios are in the air
Microsoft’s gaming brand seems to be on fire (again)
Image source: Xbox Wire
Not even a week after Microsoft was celebrating the “return of Xbox” in its summer showcase, CEO Asha Sharma and COO Matt Booty sent out an ominous memo to employees—a memo that has been shared by the Xbox team publicly. Long story short, revenue from the Xbox division has declined by about $500 million per year, and in the executives’ words, “this cannot continue.”
You didn’t need to be an industry expert to read between the lines of the memo and surmise that layoffs and studio closures were inevitable, as Sharma and Booty wrote about reassessing its business and describing the company’s forthcoming initiatives as a “reset.” If I had to guess, heads were probably spinning within Xbox’s several internal studios, with people wondering if they’ll still have a job soon.
What followed in the subsequent week was utter confusion and panic revolving around everything Xbox. Reports initially claimed that Compulsion Games, the studio behind South of Midnight (an acclaimed game that takes place in the Deep South and just won a Peabody Award), would be closing down.
Reports were amended to add that Compulsion, along with Hellblade studio Ninja Theory (which just announced its new game Senua) and Double Fine, the beloved studio behind Psychonauts, Brutal Legend, and last year’s Keeper, are at risk of closure and in negotiations with Microsoft about their fates. The possibility that any or all might spin off might sound like good news, but such a move would likely still result in massive job losses.
Who knows what is happening to these studios at this point, but amidst the messaging chaos, Double Fine’s social media team at least put out a tongue-in-cheek post consisting of a single emoji, if that means anything.
Can things get any worse for Xbox?
Around the same time, it was reported that Xbox Game Studios boss Craig Duncan and his chief of staff, Louise O'Connor, both departed the company. Duncan was only in that position for less than two years; he previously acted as studio head at Rare (another Microsoft-owned developer).
Microsoft CEO Satya Nadella also spoke pretty openly about Xbox’s troubles in a recent talk, saying that the corporation has to turn the Xbox brand “into a sustainable business” and even remarked that “there's more monetization of Xbox games happening on YouTube” than at Microsoft.
Another report even claimed that one option that Microsoft is considering is spinning off Xbox entirely, and that one of Sharma’s initiatives is to ramp up production on new entries on Xbox’s blockbuster franchises of Halo, The Elder Scrolls, and Fallout.
Is there ANY reason to even consider getting an Xbox at this point?
In 2026, buying a new Xbox Series X or Series S doesn’t seem like a worthy investment, if you ask me. A Series X ranges from $650 to $800, depending on storage capacity, and the highest tier of Xbox Game Pass—probably the only tier of that subscription worth having if you want to play trending games—is $23 a month (and that’s after the price got slashed).
Pretty much every big game you can play on Xbox is playable on PC, PlayStation 5, or even Switch and Switch 2. In what looks like a desperate attempt to boost its brand, Xbox is once again putting out exclusives, namely Gears of War: E-Day and Clockwork Evolution, but that might be too little and too late.
There are a ton of reasons not to get into Microsoft’s ecosystem. If you’re a Windows user, you’re probably already tiffed (at the very least) toward the corporation’s relentless forays into AI. Microsoft has also received backlash for its role in providing cloud and AI services for the Israeli military, leading to BDS (Boycott, Divestment, Sanctions) targeting Xbox.
Replay: What else happened?
A screenshot from Unrailed 2. Image source: Steam
Other news hits
Not to be outdone by Microsoft, Ubisoft initiated another round of layoffs and closed two studios located in Winnipeg and Belgrade. It’s also restructuring its Barcelona studio. All in all, it’s an estimated 380 people losing their jobs, reports say. And this isn’t even the first time this year Ubisoft has laid workers off.
The digital eShop on the original Nintendo Switch is infamously sluggish, but after more than nine years, a new firmware update finally fixes it. It actually runs like a respectable storefront now.
In case you forgot that we’re in late-stage capitalism, EA has launched a “platform” to help big-name brands advertise within their games. If you thought that ads in Madden, EA Sports FC, and The Sims were annoying enough, brace yourself.
Honestly, this kind of feels like a throwback—remember those weird in-game Obama campaign ads back in 2008 and 2012? No? Probably for the best.
Patents for new consumer technology have a good chance of never seeing the light of day, but this patent for PlayStation controller buttons that harden and soften based on gameplay is too interesting to ignore. There are obvious jokes to be made, but you won’t read them here.
There’s a Dead by Daylight movie in the works by Blumhouse, and it found a director in Thordur Palsson. He’s an Icelandic filmmaker whose credits include the Netflix show The Valhalla Murders and a 2025 movie called The Dammed. No, I haven’t heard of either of them, unfortunately.
Big new game releases include…
One game I particularly enjoyed during the early days of the pandemic was Unrailed, a co-op construction game that tasks you and your friends to build a railroad for a constantly moving train. It almost felt like Overcooked with trains for me. Almost six years later, Unrailed 2: Back on Track (Switch, Switch 2, PC, PS5) is out, and it brings new biomes, a map editor, bosses, a competitive mode, and a lot more to ensure some railroad madness.
Check in with us next week for more gaming news! Cross your fingers that it won’t be as dire.
Take care,
Chris Compendio
