Union Video Game Workers ‘Extremely Disappointed’ With Xbox Leadership Following Layoffs (Gaming News Roundup)

Microsoft laid off 1,600 employees across its Xbox division this week, including hundreds of union video game workers represented by Communications Workers of America.

The workforce reduction comes in addition to what new CEO Asha Sharma calls the “most significant restructure” in the Microsoft division’s history. Microsoft announced approximately 4,800 total job cuts across the company Monday, including the 1,600 Xbox employees.

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“When Microsoft sought to grow its video game division, corporate executives made an agreement with video game workers and their union, CWA, to respect their right to organize for a new day for workers across Microsoft’s video game studios,” said CWA President Claude Cummings Jr. “Although our union signed neutrality agreements with Microsoft, we have been extremely disappointed by a company that has slow-walked our members at the bargaining table, making CWA members wait for the protections of a union contract.

“But make no mistake – whether our members have a contract in hand, or are still at the bargaining table, CWA members at Xbox have the power and protection of union membership,” Cummings Jr. continued. “When Microsoft decides to treat the workers who built Xbox as expendable, it should know who they’re dealing with. This is not just a fight with the thousands of workers across Xbox; it’s a fight with each and every member at CWA — hundreds of thousands of people strong.”

More than 3,500 Xbox workers have formed unions with CWA since 2022, when Microsoft agreed to a neutrality framework that allowed workers to make that choice. Now, bestselling Xbox games like “Doom,” “Quake,” “Elder Scrolls” and “Fallout” are made with union-represented labor.

See more gaming news from this week in the roundup below.

GAME UPDATES/DLC

“Disney Dreamlight Valley” launched its first Adventure Pack, inspired by Disney’s celebration of 100 years of Winnie the Pooh.

New characters Winnie the Pooh, Piglet and Eeyore are now available in “Disney Dreamlight Valley: Honeyglow Woods.” Players can discover the Hundred Acre Wood-inspired biome through quests, new activities and exclusive rewards. 

The game is now available on PC, Playstation 4, Playstation 5, Xbox One, Xbox Series X|S, Nintendo Switch, Nintendo Switch 2, Mac and Apple Arcade. Anyone who plays by July 22 will receive the exclusive Rainy Day Winnie the Pooh Dream Style.

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The “Overwatch” franchise, originally developed by Blizzard Entertainment, is set to transfer service to Nexon in South Korea starting Aug. 12.

Coinciding with the release of “Overwatch” Season 4, registration and account linking for the PC game are now open. “The Nexon team has been working closely with Blizzard to provide a service that enhances the ‘Overwatch’ experience through Nexon’s best-in-class live operations and hyperlocalization,” Nexon’s CEO and president Junghun Lee said in a statement.

The news comes after Blizzard Entertainment and Nexon entered a publishing agreement back in March, with their collaboration focusing on hyper-localized content in Korea.

Walter Kong, Blizzard Entertainment’s SVP head of development of live games/mobile, added in his own statement: “Opening registration is an exciting step forward as we approach the August launch of Nexon’s service for ‘Overwatch’ on PC in Korea. Together with Nexon, we are proud of the high-quality, tailored experience we are building for players in Korea, and we are excited to usher in this new chapter for the Korean ‘Overwatch’ community.”

“Overwatch” originally released in 2016 and draws over 100 million lifetime players worldwide. Blizzard Entertainment is also known for franchises “Warcraft,” “Overwatch,” “Diablo” and “StarCraft.”

LIVE EVENTS

The Pokémon GO 10th Anniversary Celebration will be streamed live on the Pokémon GO Twitch channel on July 9 at 6:15 p.m. EDT.

@MYSTIC7 on YouTube, @awesomeadamtv on Twitch and @landoralpha on TikTok will also be streaming the broadcast.

Fans who tune into the broadcast for a continuous 30 minutes will earn Pokémon GO digital rewards through Twitch Drops.

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Nintendo will give early access to new games at San Diego Comic-Con 2026 on July 23-26.

Attendees at the con can try the newly announced active game “Nintendo Switch Sports Resort” on Nintendo Switch 2, which will release to the public on Oct. 22, or “Splatoon Raiders.” 

Fans can also enter to compete against social media creator The Rizzler in “Nintendo Switch Sports Resort” on July 23.

Across the convention center and downtown San Diego, Nintendo will host additional competitions, solo challenges and surprise activities.

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iam8bit and SEGA of America announced the 35 Years of Speed: The Sonic Art Exhibit.

The exhibitions will take place Sept. 4–6 during PAX West in Seattle and Sept. 26–27 in Los Angeles. Each will showcase original works from more than 30 artists reimagining iconic moments, characters and worlds from Sonic’s history, alongside artwork from SEGA’s archives.

The gallery will also display fan art contributions to a visual compilation of the Sonic universe. A select few artists will be shown at the exhibitions, and standout submissions will be selected for a “best of” visual showcase. Submissions open today.