Tag: Layoffs

  • Xbox Layoffs Incoming: Insider Tips Major ‘Reset the Business’ Move

    Xbox Layoffs Incoming: Insider Tips Major ‘Reset the Business’ Move

    Key Takeaway

    – Microsoft’s Xbox division is expected to undergo major layoffs after the fiscal year ends on June 30.
    – Xbox will also “significantly” cut its marketing budget and other areas.
    – CEO Asha Sharma stated Xbox revenue has dropped nearly half a billion dollars over the past five years.
    – The exact scale of the layoffs and which areas will be deprioritized remains unclear.

    Another Day, Another Layoff News

    This time, it’s Microsoft employees who are on the chopping block, or so it seems, according to insider information. Specifically, the Xbox division is said to be heading towards mass layoffs, a first under the new leadership of CEO Asha Sharma. Blooomberg’s Jason Schreier has recieved information from people familiar with Microsoft’s strategy, pertaining to upcoming layoffs in the Xbox division. He claims that while the exact scale is unclear, the closing of Microsoft’s fiscal year on June 30 will be followed by major layoffs.

    Xbox Marketing Budget Cuts

    Furthermore, Xbox is also said to “significantly” slash its marketing budget, along with cuts in some other areas as well. This comes shortly after Asha Sharma’s Bloomberg Tech interview, where she candidly spoke about the Xbox business not being in a healthy spot. She mentioned that some changes will have to be made, but did not talk about any restructuring. The Bloomberg report, however, does cite an email sent by her to employees outlining some revenue numbers. It said, “…our annual revenue has declined nearly half a billion during that time (the past five years). Going forward, this cannot continue.”

    Revenue Decline and Future Investments

    It further talks about how things have grown over the past five years and that making the right investments moving forward is crucial. As mentioned earlier, it is unclear what the scale of the layoffs will be and what will get deprioritized. The news follows Ubisoft’s major shakeup, wherein two more studios have been shut down, and another has gone through layoffs, affecting around 380 employees. Blooomberg, Insider Gaming

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  • Snap Cuts 1,000 Jobs Citing AI Impact

    Snap Cuts 1,000 Jobs Citing AI Impact

    Key Takeaway

    1. Snap is cutting approximately 1,000 jobs (16% of its workforce) to reduce costs by over $500 million annually and improve profitability.
    2. The layoffs are driven by AI efficiency gains and aim to streamline operations amid competitive pressures.
    3. The company remains committed to its augmented reality glasses (Specs), continuing development despite activist investor pressure.

    Major Workforce Downsizing in April 2026

    In a significant move, Snap announced laying off about 1,000 full-time employees in April 2026, making up roughly 16% of their entire global team. This decision also involved closing over 300 open roles that will no longer be filled. The company’s plan is to cut down its annual costs by more than $500 million by the second part of the year 2026.

    Strategic Focus on AI and Profitability

    CEO Evan Spiegel explained to his team that the layoffs were mainly to improve AI efficiency within the company. He mentioned that small teams using artificial intelligence tools have already helped improve Snapchat+, ad platform performance, and their infrastructure. AI now accounts for over 65% of new codes being created, which shows a shift towards smarter tech development.

    Furthermore, this restructuring aims to clear the path for Snap to reach net-income profitability. The company has described its current period as a “crucible moment” due to pressures from both big tech competitors and nimble startups, making this reorganization essential.

    Financial and Strategic Implications

    As of the end of 2025, Snap’s workforce consisted of 5,261 full-time employees. According to reports, employees in the US will be granted four months of severance, ongoing healthcare, vested equity, and transition support. They expect the layoffs to cost between $95 million and $130 million, primarily hitting their second-quarter accounts.

    Despite these layoffs, Snap continues to push forward with their augmented reality glasses, called Specs, with a planned launch later in this year. Although investors, like Irenic Capital, pushed to spin off or eliminate the Specs project, which has received a hefty $3.5 billion in funding, the company seems committed to integrating it into its long-term strategies.

    Market Response to the Restructuring

    After the announcement, Snap’s stock price jumped over 11% during pre-market trading, reflecting investor confidence in the company’s restructuring efforts despite the massive workforce cuttings.

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  • Tim Sweeney: Epic to Overcome Insurance Challenges for Laid-Off Developer

    Tim Sweeney: Epic to Overcome Insurance Challenges for Laid-Off Developer

    Key Takeaway

    1. Tim Sweeney publicly committed to resolving the lack of life insurance coverage for laid-off employee Michael Prinke, who has terminal brain cancer.
    2. Sweeney clarified that Prinke’s medical condition was not a factor in the layoff due to confidentiality laws, but the company is now working to address the insurance issue.
    3. The situation has ignited broader debates about layoffs, employee healthcare, and company responsibility, especially concerning employees with pre-existing conditions.

    Epic Games Boss Addresses Tragedy

    Tim Sweeney, the head of Epic Games, has spoken out about a sad event where an employee who was laid off recently find out he has terminal brain cancer, and unfortunately, he didn’t have any life insurance. This has caused a lot of upset, but Sweeney promise to help the family now that he knows about it, sharing this via a public post on social media platform X.

    Public Support for the Family

    He revealed that he’s now in touch directly with the family after Jenni Griffin, the wife of Michael Prinke, posted a message that gained attention fast because many people saw and shared it. Sweeney said he will do what he can for them to fix the situation regarding insurance and support, promising to address the problem head-on. He made clear that he was not aware of the illness during the layoffs because of company rules about privacy, but now he wants to make things right.

    Reaction and Updates

    Fast after the news went public, Sweeney responded to the viral post by assuring everyone that health details are confidential and that these medical issues weren’t part of the layoff decisions. He apologized to the public for not anticipating this devastating situation and promised to resolve the insurance coverage for Prinke’s family. Jenni Griffin later shared an update on social media, showing that talks with the right people are underway which might lead to a solution soon.

    Layoffs and Context

    In 2026, Epic Games fired more than a thousand staff because Fortnite’s player numbers dropped and the company was overspending without enough revenue. The layoffs were a move to keep the business stable. Among those let go was Michael Prinke, who had worked for seven years and contributed significantly to documentation and tools for Unreal Engine.

    His wife expressed her frustration on Facebook, saying that because Michael’s brain cancer was a pre-existing condition, he wasn’t able to get life insurance from other sources. This adds a layer of complexity to their financial and emotional struggles during a very difficult time.

    Online Debates and Corporate Responsibility

    The situation has stirred up many discussions on the internet about how companies manage layoffs, especially when vulnerable employees are involved. Many people feel that corporations should be more upfront and compassionate during such process, particularly for those with serious health issues. For now, it seems that Tim Sweeney has taken a step in the right direction by acknowledging the problem and proactively working to support Michael Prinke’s family. His efforts reflect a recognition of corporate responsibility in times of personal crisis.

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  • Eidos Montreal Cancels $100M+ Game After 7 Years in Development

    Eidos Montreal Cancels $100M+ Game After 7 Years in Development

    Key Takeaway

    1. Eidos Montreal laid off 124 employees due to the cancellation of the nearly seven-year, multi-million dollar project ‘Wildlands.’
    2. ‘Wildlands’ was close to completion, in the debugging phase, and set to release later this year, making its cancellation unexpected.
    3. The game’s development faced challenges, including multiple engine changes and narrative uncertainties, leading to its significant budget overruns and the cancellation of other projects like a new Deus Ex installment.
    4. Footage described of ‘Wildlands’ resembled another canceled game, WiLD, featuring open-world, mythical themes, but remains unreleased publicly.

    Recent layoffs at Eidos Montreal spark concerns around their game development strategies

    Recently, Eidos Montreal has announced another round of layoffs, citing “changing project needs.” This move resulted in the dismissal of 124 employees, highlighting recent struggles within the studio. The reason behind this decision was linked to the cancelation of a massive project that had been on the studio’s table for about seven years and involved costs reaching into the nine-figure range.

    Background of the ‘Wildlands’ project

    This ambitious project was named ‘Wildlands’ and, according to sources cited by Insider Gaming, has been in the works since 2019. Throughout its development, the game underwent numerous shifts, including switching between four different game engines. Teams at the studio faced ongoing challenges to keep the project on track, especially when trying to settle on a compelling narrative direction. The budget surpassed one hundred million dollars, leading to the cancellation of other in-progress titles, including a new installment for the well-known Deus Ex franchise.

    Development status and unexpected cancellation

    Even though the game was nearing its completion stage and was reportedly in the debugging phase, its sudden cancellation comes as a surprise to many. The game was expected to be released later this year, which makes the decision to scrap it quite unexpected. The setback reflects the unpredictable nature of high-budget game development, especially when project scopes expand beyond initial plans.

    Imagery and gameplay details

    Footage of ‘Wildlands’ allegedly showcased an open-world, third-person action adventure. The visuals bore a resemblance to another canceled game, WiLD by Wild Sheep Studio. In the game, players followed River, a teen from the group named Spiritbounds, who could harness magic and ride mythical creatures. Sadly, Insider Gaming reports that they cannot share the footage publicly, as their source prefers to keep it discreet.

    • Cost of the project: Over $100 million
    • Development duration: About 7 years
    • Number of layoffs: 124 employees
    • Game status before cancelation: Near completion, in debugging phase
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  • Epic Games layoffs: developer with terminal brain cancer loses life insurance

    Epic Games layoffs: developer with terminal brain cancer loses life insurance

    Key Takeaway

    1. Epic Games’ layoffs caused severe personal consequences, including the loss of life insurance for employees battling critical health issues.
    2. The termination of life insurance due to layoffs directly impacted Michael Prinke, a cancer patient, leaving his family in financial and emotional distress.
    3. The situation highlights the human toll of corporate decisions made in response to business challenges, underscoring concerns about accountability and compassion.

    Epic Games’ layoffs lead to tragic consequences for employee battling cancer

    Recently, the video game industry has seen an increase in layoffs, but the one from Epic Games was especially heartbreaking. The company, famous for Fortnite, laid off about 1,000 staff members because of a significant decline in player activity projected to continue into 2025, which led to higher costs than profits. The CEO Tim Sweeney stated that these layoffs were necessary to keep the business going, offering workers four months of severance and six months of health coverage in the US. Despite these efforts, stories of the impacted employees are emerging, with one family suffering immensely.

    The personal story of Michael Prinke

    Michael Prinke, who had worked as a programmer and technical writer at Epic for nearly seven years, was among those who lost his job. His wife, Jenni Griffin, took to Facebook to explain how the layoffs worsened his already serious health predicament, as he is fighting terminal brain cancer. Because he was employed full-time, he had company-provided life insurance, giving some peace of mind for his family’s future. But, with his job lost, this vital coverage was cut off instantly. She shared heartbreaking details, stating that his pre-existing condition now disqualifies him from getting new life insurance anywhere else, leaving her feeling helpless and overwhelmed.

    The toll of the layoffs on a family

    Jenni Griffin wrote about the grim reality they now face: how to pay for a funeral, keep their home, protect their child, and care for their dogs. She shared a picture of a brain MRI showing an aggressive tumor in the frontal lobe, pleading with Epic’s decision-makers for help. She emphasized that Michael isn’t just another employee; he’s her husband, their child’s father, and a beloved person. Their limited time together makes her desperate to find support, hoping that someone from Epic, who approved the layoffs, would understand the human impact of their decision.

    Epic’s response and hope for support

    While Michael’s health insurance remains active for now, losing his life insurance leaves his family vulnerable, especially during such a critical time. His wife expressed her fears about their future but also shared that, since her post, Epic staff have reached out. An update indicated that discussions are underway with the relevant parties at Epic, with a promise to provide more information soon, likely by Tuesday. She ends with a plea for compassion, wishing the decision-makers recognized how their choices affected real lives and hope that assistance may be forthcoming.

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  • Epic Games Cuts 1,000 Jobs to Stay Afloat Amid Challenges

    Epic Games Cuts 1,000 Jobs to Stay Afloat Amid Challenges

    Key Takeaways

    1. Epic Games is experiencing significant layoffs, with over 1,000 employees let go due to declining Fortnite engagement and financial struggles.
    2. The company is implementing over $500 million in cost-saving measures, including cuts to contracts, marketing, and open positions.
    3. The gaming industry is facing broader challenges, such as lower consumer spending and slower growth, impacting companies like Epic Games.
    4. Epic Games has a history of overcoming tough periods, but it remains uncertain if they can navigate their current challenges successfully.
    5. Laid-off employees in the U.S. will receive health insurance for six months and a severance package of at least four months’ salary.

    Although Epic Games is known for much more than just Fortnite, any decline in this key game’s popularity seems to affect the whole company. Currently, the American firm employs over 4,000 people while managing the widely used Unreal Engine, the Epic Games Store, and numerous games. The titles released by Epic Games Publishing include Fall Guys, Alan Wake Remastered, PC Building Simulator 2, End of Abyss, among others. Unfortunately, troubles that started in 2025 are still causing difficulties for them.

    Layoffs Announced

    A message sent to employees at Epic yesterday stated:

    “We’re letting go of more than 1000 Epic employees today. I regret that we find ourselves in this position again. The drop in engagement for Fortnite that began in 2025 has resulted in us spending much more than what we earn, and significant cuts are necessary to keep the company afloat. This layoff, along with over $500 million in identified savings through contracts, marketing, and closing certain open positions, helps us to create a more secure future.”

    Industry Challenges

    The message also discussed challenges faced across the industry, like lower spending and slower growth, along with stricter cost measures. It pointed out some unique difficulties for Epic, such as the ongoing effort to provide appealing Fortnite content each season and the initial phase of re-entering the mobile market while optimizing for that platform.

    Historical Context

    Additionally, the note reflected on the tough periods Epic had in the 1990s during the transition from 2D to 3D with Unreal 1, in the 2000s as they developed console games like Gears of War, and in 2012 when they shifted to online gaming with Paragon and Fortnite. It remains uncertain if they can overcome these challenges yet again.

    In the United States, employees who are being laid off will receive health insurance coverage for six months, along with a severance package that guarantees at least four months of their base salary.

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  • Ubisoft Employees Plan Mass Quit Ahead of Layoffs After Game Cancellations

    Ubisoft Employees Plan Mass Quit Ahead of Layoffs After Game Cancellations

    Key Takeaways

    1. Ubisoft has canceled six more games and anticipates further layoffs, leading to rising employee frustrations.
    2. Employees are openly criticizing upper management through internal communication channels, a rare occurrence in game studios.
    3. Many developers are actively seeking new job opportunities and planning to leave Ubisoft, anticipating significant talent loss.
    4. Since September 2022, Ubisoft has laid off over 3,500 employees and plans to cut an additional 2,400 jobs by March 2028, creating job instability among remaining staff.
    5. Changes in workplace policies, such as mandatory in-office work five days a week, are contributing to employee dissatisfaction and impacting their family lives.

    After six more Ubisoft games have been cancelled and with more layoffs on the horizon, frustrations are rising. Tom Henderson from Insider Gaming has shared that employees are openly voicing their discontent with the leadership. Many developers, rather than waiting for the next wave of job cuts, are getting ready to leave the company.

    Internal Communication Issues

    In a post on his social media, Henderson noted that “Ubisoft’s internal communication channels are full of workers criticizing upper management and demanding changes.” He pointed out that such direct criticism, which is likely visible to upper executives, is uncommon in game studios.

    Exploring New Opportunities

    Some employees are looking into new job opportunities, while others are speeding up their planned departures. Even though they still have jobs at Ubisoft, many are particularly active on LinkedIn, searching for new positions. Henderson predicts that “Ubisoft is going to see a significant loss of talent, even without the upcoming layoffs.”

    Restructuring Concerns

    Henderson also commented soon after the company’s latest restructuring plans became known. Since September 2022, Ubisoft has already laid off over 3,500 employees, shrinking its workforce to below 17,100. He anticipates that around 2,400 additional job cuts will happen by March 2028.

    Recently, Ubisoft has closed studios in both Stockholm and Halifax and reduced staff in Abu Dhabi. The developers who remain are surely feeling the strain of job instability. Furthermore, many of the games they have poured years of work into will never be released. For example, the remake of Prince of Persia: The Sands of Time has been in development since 2020.

    Commuting Changes

    Workplace policies could also be a reason behind the growing discontent. As part of its cost-reduction efforts, Ubisoft is requiring employees to commute to the office five days a week. Even if some can work remotely on a limited basis, this shift can significantly impact their family lives.

    As Ubisoft’s stock continues to drop, the future of the publisher is more uncertain than ever. Both investors and the remaining staff have doubts about the company’s strategy to save an additional €200 million. This move might not resolve the leadership issues that have troubled the company through its challenging times.

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  • Square Enix Announces Mass Layoffs Following Generative AI Expansion

    Square Enix Announces Mass Layoffs Following Generative AI Expansion

    Key Takeaways

    1. Square Enix is laying off hundreds of employees in the UK and US, focusing on marketing and IT roles.
    2. The company aims to enhance efficiency in Q&A departments, targeting them for job cuts.
    3. Square Enix is partnering with the University of Tokyo to integrate generative AI into game development, aiming to automate 70% of Q&A processes by 2027.
    4. Concerns arise among employees about job security due to AI potentially replacing human roles.
    5. Previous layoffs in 2024 did not significantly impact the company’s financial performance, with mixed results in the latest financial statement.

    Square Enix has become the newest significant game publisher to reduce its workforce. Known for its Final Fantasy series, the company is letting go of hundreds of employees in both the UK and the US. This decision follows the firm’s commitment to increasingly adopt generative AI technology.

    Job Cuts Announced

    According to Video Games Chronicle, Square Enix president Takashi Kiryu talked about the job cuts during a global video call. While exact figures are not disclosed, it is estimated that as many as 140 workers in London may be losing their jobs. The layoffs will impact various positions across the company’s offices in Europe and the United States, particularly affecting roles in marketing and IT. The indie game division, known as the Collective, might face significant reductions as well.

    Focus on Q&A and Efficiency

    The report from VGC also highlights that Q&A departments are among the areas targeted for layoffs. This has raised concerns among gamers, especially in light of another recent announcement. The company’s latest financial report outlined efforts to make the Q&A process in game development more efficient.

    Square Enix is collaborating with the Matsuo-Iwasawa Laboratory at the University of Tokyo to boost its use of generative AI. Q&A plays a vital role in assessing a game’s user-friendliness, and AI technology is expected to streamline the challenging bug-testing tasks. By the close of 2027, the company aims to automate approximately 70% of these processes.

    Concerns About Job Security

    Workers are worried that AI’s integration will progressively replace human roles to increase profits. Xbox Gaming has made significant investments in this technology, launching projects like Muse, which they say are designed to support creators rather than replace them. Nonetheless, employees at King, the developer behind Candy Crush Saga, have reported that colleagues were laid off due to the implementation of such tools.

    Previously, Square Enix had also made cuts in Europe and North America back in 2024. These actions, however, did not significantly alter the company’s financial situation. In the latest financial statement, the results were mixed; while operating income rose by 6% compared to the same timeframe last year, net sales fell by 23.7%.

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  • Amazon Plans Up to 30,000 Corporate Layoffs for Profit Growth

    Amazon Plans Up to 30,000 Corporate Layoffs for Profit Growth

    Key Takeaways

    1. Amazon is planning to lay off up to 30,000 corporate employees, primarily in operations, devices, services, and human resources.
    2. The layoffs are part of a broader cost-cutting strategy initiated under CEO Andy Jassy, aimed at improving operational efficiency and productivity.
    3. Affected employees will be notified next week, but exact details about severance packages and support for job searches are not yet available.
    4. The layoffs could lead to project delays, hiring freezes, and centralized internal services as the company seeks to streamline teams.
    5. More information about the specific teams impacted by the layoffs is expected to be released in the coming days.

    Amazon is gearing up for a big corporate shakeup that could lead to the loss of up to 30,000 office jobs, according to a report by Reuters, which cites sources in the know. The layoffs are projected to begin next week, mainly targeting corporate divisions like operations, devices, services, and human resources.

    Significant Workforce Impact

    If the numbers mentioned are accurate, these job cuts would make up a major part of Amazon’s corporate workforce. Reuters describes the total as being in the low tens of thousands and indicates that the teams affected will be notified as the company rolls out its plan. It’s important to mention that these insights come from unnamed sources, and Amazon has not issued any official statements at this moment.

    Broader Cost-Control Measures

    This potential layoff strategy follows previous job cuts across various sectors within Amazon, reflecting a wider trend of cost-cutting within the tech industry. Under the leadership of CEO Andy Jassy, the company has emphasized a need to streamline decision-making, cut down on red tape, and enhance productivity, possibly through automation and AI. Management has previously suggested that these changes could alter the structure of corporate teams.

    The layoffs are part of a larger attempt to improve operational efficiency and shift resources toward key initiatives. According to the sources, some positions might be combined or redefined, while others might be eliminated entirely. However, specifics regarding severance packages, support for finding new jobs, and precise timing were not detailed in the report.

    Financial Considerations

    While cutting jobs can significantly reduce payroll costs, it often comes with immediate restructuring expenses, potential interruptions for teams working on ongoing projects, and might even impact daily operations. Companies that engage in extensive layoffs typically use the savings to redirect funding toward important areas or investments.

    The impact of these layoffs will differ across various teams. Projects linked to long-term product strategies may face delays or cancellation, hiring freezes could be prolonged, and internal services might be centralized to minimize overlap in roles as the Seattle-based tech giant seeks to enhance overall efficiency.

    Traditionally, Amazon tends to inform employees about layoffs before making public announcements, so more information is likely to emerge in the coming days as the news spreads and teams begin to receive formal notifications. For workers and observers, the next few days should shed light on which parts of Amazon’s vast operations are most affected and how the e-commerce and data center giant plans to assist those impacted.

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  • Firaxis Games Faces Layoffs Amid Civilization 7 Development

    Firaxis Games Faces Layoffs Amid Civilization 7 Development

    Key Takeaways

    1. Firaxis Games experienced layoffs in September 2025, confirming job reductions due to restructuring and optimization efforts by publisher 2K.
    2. Notable staff members affected by the layoffs include senior quality assurance tester Logan Blackwood and lead character artist Matthew Davis, who shared their experiences publicly.
    3. Firaxis employees, including writers, are actively seeking new job opportunities in the gaming industry following the layoffs.
    4. The layoffs come after the mixed reception of Civilization VII, which faced criticism for its user interface and the New Ages system, resulting in a low Steam rating.
    5. Despite critical acclaim for Marvel’s Midnight Suns, the game was deemed a commercial failure, which may have contributed to the difficulties and restructuring at Firaxis.

    The developer known for creating the Civilization series, XCOM, and Marvel’s Midnight Suns, Firaxis Games, has faced another round of layoffs in September 2025. This adds to the trend of job reductions that are sweeping through the gaming industry.

    Confirmation of Layoffs

    Publisher 2K has officially confirmed the layoffs at Firaxis Games. However, the exact number of staff members who lost their jobs is still unclear. The first reports about the layoffs emerged from social media posts made by affected employees.

    Notable staff members, including senior quality assurance tester Logan Blackwood, lead character artist Matthew Davis, producer Maya H., and artist Daniella Zeman, shared their experiences of job loss online.

    Job Seekers Emerge

    A writer from Firaxis announced on LinkedIn:

    “I am one of the layoffs at Firaxis, and I am looking for full-time writing positions at other studios. I’m a very flexible writer who contributed to Civilization VII and Marvel’s Midnight Suns during my nearly five years at the company. I urge you to consider my former coworkers who were also let go.”

    A spokesperson from 2K confirmed the job reductions to Rock Paper Shotgun, stating:

    “We can confirm there was a staff reduction today at Firaxis Games, as the studio restructures and optimizes its development process for adaptability, collaboration, and creativity.”

    Challenges Post-Release

    These layoffs follow a challenging time for Firaxis, especially after the launch of Civilization VII in February 2025, which received mixed reviews from both players and critics.

    The game’s user interface and the controversial New Ages system were particularly criticized. According to SteamDB, Civilization VII has a Mixed user score, with a Steam rating of 47.30%, indicating that 24,643 out of 46,667 reviews were negative.

    Take-Two Interactive CEO Strauss Zelnick acknowledged the difficulties faced by Civilization VII at its launch, stating that such issues are common for the series. Despite Firaxis’s attempts to enhance the game based on community feedback, including adding new content, it continues to perform poorly, likely influencing the recent restructuring.

    Marvel’s Midnight Suns, which was released in 2022, garnered a Very Positive rating on Steam, with 81.4% positive reviews. However, despite its critical success, it was considered a commercial failure, as it did not meet sales expectations, which was attributed to a complicated DLC structure and an unfortunate release window.

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