Kinda Funny Games Daily: Video Games News Podcast
Episode: The Fallout of the Xbox Layoffs
Release Date: July 3, 2025
Hosts: Greg “GameOverGreggy” Miller, Tim Gettys, and Blessing Adeoye Jr.
Introduction
In this somber episode of Kinda Funny Games Daily, hosts Tim Gettys and Andy Cortez delve into the troubling news surrounding the video game industry. The focus centers on significant layoffs at Microsoft’s Xbox division, project cancellations, and the broader implications for the gaming community. Despite the heavy topics, the episode also touches on some positive updates and engages with listener super chats towards the end.
Major Layoffs and Project Cancellations
Microsoft’s Xbox Layoffs
The episode begins with Tim Gettys announcing a challenging day filled with unsettling news: "It's not gonna be a fun one. Mostly bad news about the video game industry." (00:00)
According to Sean Carey at True Achievements, over 9,000 employees across various Microsoft divisions, including Xbox, have been laid off. This massive reduction has led to the shutdown of significant initiatives:
- Perfect Dark: A long-awaited title by Rare, now canceled.
- Everwild: An unannounced MMORPG from ZeniMax, also canceled.
Departure of Key Personnel:
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Matt Fryer, head of ZeniMax Online Studios, announces his departure after 18 years, expressing confidence in the new leadership:
“While I won't be working on the game anymore, I will be cheering you on...” (09:00) -
Louis O'Connor, executive producer at Rare, and Greg Nails, legendary designer, are also leaving the company.
Impact on the Industry
Andy Cortez shares his distress over the layoffs:
"It feels like we're just reading the tea leaves of this and... it is not a." (10:58)
He emphasizes the emotional and professional toll on the affected employees, highlighting the unpredictability and instability now pervasive in the industry.
EA’s Battlefield 6 Ambitions
The discussion shifts to EA’s ambitious target for Battlefield 6, which aims for 100 million players—three times more than its best-selling predecessors. Tim Gettys cites Conan McCarr at Eurogamer:
"EA's executive leadership has reportedly set a goal of 100 million players for the upcoming Battlefield game..." (08:38)
Skepticism Surrounding the Goal:
- Past performances, such as Battlefield 2042 reaching only 22 million players, fuel doubts.
- Comparisons to Call of Duty Warzone, which achieved 100 million players in about a year, but under different market conditions.
Andy Cortez is highly critical of these numbers:
"It should. It just shows you that, like, it doesn't matter. It intelligence doesn't matter..." (30:19)
He argues that the expectations are unrealistic and rooted in a lack of understanding of the current gaming landscape.
Build a Rocket Boy’s Struggles
Build a Rocket Boy (Barb), a Scotland-based developer, faces severe challenges following the disastrous launch of Mind’s Eye. Sources from IGN report that around 300 UK employees have received redundancy notices due to:
- Poor game performance with only 26 concurrent players at the time of reporting.
- Negative user reviews and numerous bugs.
- Allegations of sabotage, with CEO Leslie Benzies blaming both internal and external factors for the game's failure.
Tim Gettys summarizes Benzies’ statement:
"I was being told that our publisher has canceled funding... we're working quickly to support our team." (30:19)
Andy Cortez expresses frustration over the situation:
"It's insane that we're in this space... Legends in the industry being shuttered." (43:47)
Romero Games Closure
Another blow to the industry comes with the closure of Romero Games, a subsidiary of Microsoft’s Xbox. According to Jordan Midler at VGC:
- Over 75 developers from the Ireland-based studio are affected.
- The cancellation stems from Microsoft pulling funding, not direct layoffs.
- The studio was working on a first-person shooter using Unreal Engine 5.
Tim Gettys reflects on the broader impact:
"Is that going to continue, Andy, funding Kojima's OD? Are we going to hear that that's canceled?" (42:00)
Andy responds with disbelief:
"I really don't believe that anybody is safe through any of this." (43:49)
Good News: Helldivers 2 Arrives on Xbox
Amidst the bleakness, Helldivers 2 is announced for Xbox Series X and S on August 26, priced at $40, as reported by Xbox Wire. Tim Gettys views this as a positive development:
"What this means is very promising for the multiplayer community and cross-platform play." (44:40)
Andy Cortez appreciates the move:
"This is a great move and I like that we're seeing the willingness from Sony to do something like this." (45:08)
The collaboration between Sony and Xbox publishers is seen as a beacon of hope amidst the turmoil.
Rumors: Phil Spencer’s Retirement
A rumor suggests that Phil Spencer, CEO of Microsoft Gaming, plans to retire following the next-gen console launch. Sourced from Tom Henderson at Insider Gaming and echoed by ghostaccounts on social media, the rumor lacks official confirmation. Tim Gettys expresses his expectation for Spencer’s departure:
"Given today's recent blood bath of layoffs, I'm with all this not a surprise." (48:42)
However, listener skepticism remains high, with some chats debunking the claims.
Last of Us HBO Series Changes
In a surprising turn, both Neil Druckmann and Holly Gross announce their departure from the creative aspects of the Last of Us HBO series:
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Neil Druckmann:
“I’ve made the difficult decision to step away from my creative involvement in Last of Us on HBO…” (52:12) -
Holly Gross:
“I’ve decided to take a step back from my day-to-day work on HBO’s Last of Us to make space for what comes next.” (52:12)
The hosts speculate on potential reasons, including creative differences or a focus shift towards upcoming projects like Intergalactic the Heretic Prophet.
Street Fighter Movie Casting
In lighter news, Cody Rhodes has been cast as Guile in the upcoming Street Fighter movie, as reported by Deadline:
- The cast choice is met with excitement, although concerns about maintaining character accuracy are raised.
- Blessing Adeoye Jr. expresses enthusiasm:
“I can't wait for this goddamn movie.” (53:34)
Listener Super Chats Highlights
The episode concludes with a series of listener super chats providing diverse perspectives:
- Condor (56:06): Points out Trenchant failures from Build a Rocket Boy.
- Nico (56:06): Criticizes Xbox’s fluctuating strategies.
- Trent (56:06): Highlights the loss of talent and its long-term effects.
- EBO (56:06): Suggests that game cancellations are for tax write-offs.
- Brookie (56:06): Asks about upcoming reviews for Jurassic World Rebirth.
These comments underscore the community’s concerns about industry instability and the future of game development.
Conclusion
The episode of Kinda Funny Games Daily paints a grim picture of the current state of the video game industry, dominated by massive layoffs, project cancellations, and the exodus of key talent. While there are glimmers of hope, such as the release of Helldivers 2 on Xbox, the overarching sentiment remains one of concern for the industry's sustainability and the well-being of its workforce. The hosts engage thoughtfully with listener feedback, reinforcing the communal impact of these developments.
Note: All timestamps correspond to their position in the provided transcript.
