Mid Week News: March 25, 2026

Epic Games Announces Massive Workforce Reduction

​The industry is reeling from a "right-sizing" event at Epic Games, with over 1,000 employees laid off this morning. Citing a sustained downturn in Fortnite engagement since late 2025, CEO Tim Sweeney confirmed the company is spending significantly above its earnings. To mitigate losses, Epic is permanently sunsetting three Fortnite modes—Ballistic, Rocket Racing, and Festival Battle Stage—on April 16. Many laid off employees expressed surprise at the move on social media following the news and fans came together in an outpouring of support. Just another sign that large corporation, AAA American studios are struggling in the current marker.

​Microsoft’s "Project Helix" Next-Gen Strategy Leaked

​Internal details regarding Project Helix suggest a radical shift for the Xbox ecosystem under new leadership. The hardware is reportedly a PC-Console Hybrid, designed to run Windows and Xbox titles natively. This "open-box" philosophy aligns with recent moves to sunset traditional marketing campaigns in favor of a hardware-agnostic, mass-market "Game Pass" future. The hardware specifications, price point, and other details remain unknown at this point. Asha Sharma, the new Microsoft Gaming CEO, has also sunset the "This is an Xbox" ad campaign as one our her first moves in the role. The future of Xbox still remains largely uncertain but Sharma appears to moving quickly.

​Nacon Subsidiaries Enter Judicial Reorganization

​Following a string of insolvency filings, Nacon and key developers including Spiders Games, Cyanide, and Kylotonn have entered a court-ordered "Judicial Reorganization." A legal injunction has frozen their debts for 18 months, allowing a "freeze and focus" strategy to ensure the 2026 release of high-profile Cthulhu titles and fulfill existing pre-orders. This comes just weeks after Nacon put out three well received titles: Styx: Blades of Greed, Greedfall: The Dying World, and Dragonkin: The Banished. Hopefully Nacon can get back on track in the coming months.

​PlayStation Shuts Down Dark Outlaw Games

​Sony’s internal portfolio continues to shrink with the reported closure of Dark Outlaw Games. The studio, founded by Call of Duty Zombies visionary Jason Blundell, is the latest victim in a series of "public executions" of Sony-acquired talent. This follows the recent shuttering of Bluepoint Games, raising questions about Sony's long-term ROI on recent acquisitions. This is now the second studio headed by Jason Blundell shuttered by Sony. Interestingly, this studio was only around for around a year and had a main focus on mobile titles. It also appears to have caused a lose of around 50 jobs as well. Wishing the people at Dark Outlaw all the best in their next endeavors.

Market Watch: Marathon vs. REANIMAL

​Early March data reveals a widening gap between AAA investment and indie engagement. While Bungie’s Marathon has moved approximately 1.2M units, it is currently being outperformed in active concurrent players by indie breakout Slay the Spire 2 and the AA horror title REANIMAL. Analysts suggest the $250M+ budget for Marathon may struggle to reach profitability at current engagement levels. Marathon does have a full year of content planned and continues to hold steady player numbers but it does seem to not be the incredibly smash hit that Sony is likely to have wanted.

Quick Hits & Anniversaries

• ​Nintendo: Slashed Switch 2 production targets by 30% this quarter due to $450 price-point resistance in the U.S. market.

• ​Silent Hill: Today marks the 16th anniversary of Silent Hill: Shattered Memories (2010). Concurrently, Konami confirmed Silent Hill: Townfall is on track for a late 2026 launch.

• ​Tekken 8: Bandai Namco issued an emergency apology and confirmed a mid-April patch to address community backlash regarding Season 3 balance.

News courtesy of @pulpculture323 on X