# Xbox layoffs reportedly gut Id Software’s coding team and cut 60-70 developers from Obsidian

> **Newsylist Open Intelligence Dossier** · First detected: 2026-07-07 12:29 UTC · Category: Technology · Sources: 16 · Current Velocity: 16

## Executive Summary
Reports indicate Xbox layoffs have severely impacted Id Software's coding team and reduced Obsidian Entertainment's staff by approximately 25%.

## Intelligence Brief
Xbox is implementing layoffs that have reportedly targeted key development roles. According to Video Games Chronicle, the cuts have gutted the coding team at Id Software and removed 60-70 developers from Obsidian Entertainment.


Coverage from IGN, Rock Paper Shotgun, and TheGamer emphasizes that Obsidian has lost roughly a quarter of its staff. Tech4Gamers reports that a developer revealed almost every coder at Id Software was laid off.


Future developments may center on how these cuts affect specific projects, as Rock Paper Shotgun notes a push to focus on series such as Fallout.

## Verified Facts & Key Claims
### How many developers were cut from Obsidian Entertainment?
Reports indicate 60-70 developers were cut, which represents approximately a quarter of the studio's staff.

### Which team at Id Software was most affected?
Coverage specifies that the coding team was gutted, with one developer stating that almost every coder was laid off.

### What is the reported strategic focus following these layoffs?
According to Rock Paper Shotgun, there is a push to focus on series like Fallout.

## Key People, Organizations & Locations
Fallout, Obsidian, Obsidian Entertainment Has Been Hit Hard By Xbox Layoffs, New Vegas, Xbox Has Laid Off Almost Every Coder At Doom Studio Id Software Reveals Dev, Obsidian Reportedly Set, Quarter of Its Staff Amid Xbox Layoffs

## Multi-Source Evidence Table
| Source Outlet | Headline | Published (UTC) | Verification URL |
|---|---|---|---|
| GameSpot | Some Of The Most Impressive Gaming Tech Ever Wasn't Enough To Save Devs From Xbox Cuts | 2026-07-07 16:09 | [Source Link](https://news.google.com/rss/articles/CBMivAFBVV95cUxORFI0cWloVVZqM0RMNWdSY2JpUnQxRUwtSVJBaEh3OGlvVFl6c01MZ2p3RlBZUW5hekpfRzI3dktjTzlJY3h0QUVfZGN1dlVXWEhSSmlOZFZaS3lZTDBoMU85THJONGtTTkdiQ1JQaGZzY2hVcHR6amxVa2Ewb0VQNXFGb0xiTmJqV0JXYzFOZS12SkxjdGlzSWcteU1WMHoyYVE2S19kSU1TcUlDQ2djNDJMOFViaGloQVYwbg?oc=5) |
| Windows Central | DOOM dev reacts to Microsoft's Xbox and id Software layoffs: "We hope our pain was worth it" | 2026-07-07 16:09 | [Source Link](https://news.google.com/rss/articles/CBMi7gFBVV95cUxQdnRlRGZudV8wX0NQLTFHdkpDdXhfNnQ5Z0JDaG5QTnZsc2xqc0RoTkxiWnF6MUJvMENjSE1hS1otTjJ2LUxMbThZYTRobTFkdURqaGM4NlFvbGZVeXNUdDZ0eHZoQk9GQ2h3N0pCSXViekJNNnR4UkU0ZnFDRnk5QWxvX3ZHLTF6eG03LVhXN2FucEc1SnpUQnFFVDlsdzNtM0tCY3lHOUpDbmcxOGxPeDkzLUctNjNhRXhfQTVkZFQyODBHbmRudWJXcmE3MTNncTBadkRGWnluWGlXWnUxUm04N0dKVk9xbUFoQ093?oc=5) |
| Engadget | Doom Developer Id Software Is Reportedly Losing Half Its Staff | 2026-07-07 16:09 | [Source Link](https://news.google.com/rss/articles/CBMinAFBVV95cUxQazdHZjkzVEM4V2ZXWlRBNFpJLVhSSlJjOUVxMTZNeUQ5QlFtRmFXSGJRZklKYjh1SGpGeWZvZjdXWmgxQldkYVdnaW9nNFMyTjhxSVYweWoweFgxTjRJYVJzQzZYY2lSRllaUXBoakhXVDUyOTJMbHFlZkxucndDZURYcncyLVdLNlNhMXVCLTY0ZGNVU0pjV0FXX3A?oc=5) |
| Ars Technica | Bethesda, id Software reportedly hit hard by Microsoft layoffs | 2026-07-07 16:09 | [Source Link](https://news.google.com/rss/articles/CBMiowFBVV95cUxNYjVCdTQ4WkZqV011eTY0UnBYaXpBTTJ6ZDVHb0hzbUZFQllZMm9vMTR5M29teHdwUUlxT1FPWnBfTF9kaWk4TXlNOFA0TWFKdHgycC16bzRyU01yaFI4OVRxR3pRUGJnckRzUDR2ZUN1ajZOUHFlbmI4Q2dzWHpjUFlBWGYyWTl2VUhIVktHY2ZyVmZMU0tOdW1abHRaTEpodVV3?oc=5) |
| The Verge | Doom developer id reportedly cut in half as part of Xbox layoffs | 2026-07-07 16:09 | [Source Link](https://www.theverge.com/games/962223/doom-id-software-xbox-layoffs) |
| Insider Gaming | Former Obsidian Dev Labels Layoffs ‘Microsoft Sacrificial Rituals’ | 2026-07-07 09:40 | [Source Link](https://news.google.com/rss/articles/CBMijgFBVV95cUxNNUZZSDVIUV9oZ3JpcnM4eV81MG5RWHRlT1I4Z04xSzBtSzZPcmFQZEh6SWtVT3N2Z1pIenhRT0NTV29jcXFFSFdOci1RSDJDclNmMXU4NFUtSFplaGljUzUzekkxTU4yUjdPc09pRndhSmNqbTZXeUdaaElnWVBwcU5JZXNaVTk5X1NGckZn?oc=5) |
| TechPowerUp | Xbox Layoffs Decimate Id Software and Obsidian | 2026-07-07 09:40 | [Source Link](https://news.google.com/rss/articles/CBMiiAFBVV95cUxOb1VwR0oydVZxUHFOZ2U3YngyeFc1SFNOeU5aTmNrbzJZdThhV0JKMmgtTWV2MXBBVDJjdU4xNXpzN3U5UndFWThNYTdId2lURFlUNWQ5SmMzYTVaZ3FUb1Q3YTdpM3FkbWJJVldXQ1VmS0xnTC15SFhOU1RfWm9ZbVcwd2VVakJ00gGOAUFVX3lxTE1aaDEtcTkzeUI4VWRUOVZScWt2M2Z4V3lhX0tSdFlLUW94ay1Qa0NYbDl5UnhreFFkUlVXNGpIb25rRUgzbkxEWGxyaDNBSnRJTzVFVmxpLVVBREVNVnYyQlV1UGdTc3VYNmpwODBmVU4zYmdMUG1OWHZaR1QxMkM2alMxenotRHR2SU1nZHc?oc=5) |
| Polygon.com | Fallout: New Vegas and Avowed dev hit hard in bloodiest week in Xbox history | 2026-07-07 09:40 | [Source Link](https://news.google.com/rss/articles/CBMilgFBVV95cUxOR3BIRlRtUUVObnlsZkNYRVdOUjAyblFqdHJrWHV1eVYwbFZMcGdoWnJfbnZ4aXA2M3YwMjR2RGk3bkF5dE9WY012eTJrVnJweS1EdmtWamd3aENPUzFCUUFPeUVGSDRqWHVqUlEtVFVaY2ZCUng5QmVUSXB6b2piNWNfVUlwOFprRlJMRjRJLU4yYUhlNVE?oc=5) |
| Yahoo Finance | Obsidian Hit Hard By Xbox Layoffs, With 25% Of Devs Cut From Studio | 2026-07-07 09:40 | [Source Link](https://news.google.com/rss/articles/CBMinwFBVV95cUxPV0hBeEhrUXk3S0x6dVUwenctUVJsbU1iSWVMT2VGUmhwQ1BsUmtLcURvV3ljOE5WM0NkX0plbGhqSzQ5UTZhRDJpSkpBYnlnbVVVeVRoLXUzWC11OEpPRGJQblBKNG04bWRFWVZnYkE1RGRVanl6UmJkMUM3R2QwdUIzWko4T2dVWEdZUy1FSnQ0NUhTcnl0TjdPUm1nYVU?oc=5) |
| GamingBolt | The Outer Worlds 2, Avowed Studio Hit by Layoffs, Affecting 25 Percent of Employees | 2026-07-07 09:40 | [Source Link](https://news.google.com/rss/articles/CBMirwFBVV95cUxOMmdhcG94eUFLckVKX2V2Mzd0X3hVaXhfaVVweFU1NmJza2FrQXUyOGhyd25RbnRHQ2szRWp0eHd0aXVLeEU1NzB4RURMV2J6NWx2eDVZLVI5ZEhCSE9zU3l0dHBjeHBhajBGWm1jdWYwdGY2OGIzWFY0aU1NYVMtc1R4MzZCMDg0UHNHbWJ5dDJvVnhFcVJUXzBXRk1pd0lhMzktRlRiejBOTnFaWUdN?oc=5) |
| GameDev.net | Report: Multiple Xbox game studio heads negotiating with Xbox to avoid closure | 2026-07-07 09:40 | [Source Link](https://news.google.com/rss/articles/CBMiREFVX3lxTE05RXo3OFdNRjRVdUFBQlhCMXFla212Nk5FYXozYW5VWjk3OUdxUUpyYlRRV01ZbTVBZnpXRXJyTWVaY3lV?oc=5) |
| TheGamer | Obsidian Entertainment Has Been Hit Hard By Xbox Layoffs | 2026-07-07 09:40 | [Source Link](https://news.google.com/rss/articles/CBMijAFBVV95cUxOV1htSVY2T1FhNkl2YmRnd3ZZTDR6MHZVZlgxWUNCS0psSnBiZDlwdXJSaktKbEFOZVF4OE10TGh3WVZqdEVSRFV0TEN4RWFiSFBrQzBjQTIxbHhZbF9TSXRXVW5vaDNkV3d0S2gwWlp4dHZzUktLTjZMRl9mUl9Cd3NnY0RKTU5zU0hvMg?oc=5) |
| Rock Paper Shotgun | Xbox's layoffs come with a push to focus on series like Fallout, so naturally New Vegas devs Obsidian have reportedly lost around a quarter of their staff | 2026-07-07 09:40 | [Source Link](https://news.google.com/rss/articles/CBMikwJBVV95cUxOWXppNGtPT3htbUNDTU5qd0pBRl83cWhadmx3MHE5LU9iaEdWWWNxb3pGSXFWaHBLLWdEOGxLMjZ6ODJZV2NWVWQtYUVuWV9uajNMNThNTzMxckoxNnpxS3Q5cHFvWWt4NURLeC11V196QzhlaHV5RmJMVHIzZnhzWXVnMFVFTnNmbHdwaDdIbnNnRHlfbWxpcnlXTVdwVngtMkhnTHdBT0dVTml1QTV4NDlZc25rdXZiNm5lY3prOEhCMllxZTIwUDItOVk5dzJ0WGJWM1VrajU0b0ZpNnA0U1YyMFpXLWhFd0swUnYxWThwV3N5SEN4bEdmelVjeGloRVhNb0hnUDRaS2p1a0g0ZUZlUQ?oc=5) |
| Tech4Gamers | Xbox Has Laid Off Almost Every Coder At Doom Studio Id Software, Reveals Dev | 2026-07-07 09:40 | [Source Link](https://news.google.com/rss/articles/CBMib0FVX3lxTFAtRHBQVUEweEkwRG50OW5ndjd0TDQ4SVdGaXYwaXUwSy1FQ0dQRVQxOWQ2RFd1RWtMdW8xZC1lOGJ1ckJlb2s2RVV4TXhkVDZhZUhOUjdGMmRmMkdhWGZHSW5XS0VoNHZMT3BLTnl3cw?oc=5) |
| IGN | Obsidian Reportedly Set to Lose a Quarter of Its Staff Amid Xbox Layoffs | 2026-07-07 09:40 | [Source Link](https://news.google.com/rss/articles/CBMi9wFBVV95cUxNZVIxdy1acWJoUmxmazJHcWdONi13YU9nZ3FoZ2FFa2lnMFY3bWpJeVBMYjJ1azJONWpEMHZCbWNFV1dTcGlVZ2FEWGxDSmV3emRYeU8yeVp4NWlQcmlEel9JUFhLcXlRTHl5OEZXTnlyMFRIZ1p6ME9JamluVVpUTVFlaFdpZ0dTSzNmbWhHS01nSVA4MGNsNko0Rm9fQ3VTZmVFYVM4aDR5T0xGVFVvLUo3OHhmMGZpVjdlNWNPZkJhTGx5Ry1obVlRVnNVTldqcHp1V1pUdmQwLWsyTXFpNER4d1I0bFNQNWJxWkF2MFlydFFDLXZ3?oc=5) |

---
*Canonical Source: https://www.newsylist.com/trend/2026-07-07/xbox-layoffs-reportedly-gut-id-software-s-coding-team-and-cut-60-70-developers*
*Synthesized by Newsylist Open Intelligence Engine under E-E-A-T journalistic standards.*