Duke Nukem Creator Warns Xbox Layoffs Could Become Gaming’s Biggest Ever

Something still feels off at Xbox. After Asha Sharma stepped into the CEO role with early momentum, the company now appears to be entering a far more punishing phase. Sharma acknowledged earlier this month that the situation “isn’t healthy,” and while no single announcement explains everything, the fallout is starting to show.

No major details have been formally confirmed, but the tone coming from outspoken industry figures has turned grim. Duke Nukem’s creator, George Broussard, has issued a warning that suggests the scale of upcoming changes could be unlike anything players have seen before.

Xbox Faces Layoff Fears That Could Make It “Supremely Unpopular”

For weeks, whispers have circulated through the industry about widespread layoffs and potential studio closures at Xbox. The claims being shared suggest that multiple teams and developers could be affected in different ways, rather than one single cut. Those rumors have reportedly started to become reality already, with Compulsion Games—known for South of Midnight—facing departures, and more studios being mentioned as the days go on.

Names frequently linked to the most severe impact include Bethesda, ID Software, and BioWare, with reports describing the situation as a “Massive Bloodbath.” Other studios repeatedly brought up in the same conversations are Ninja Theory and Double Fine. Arkane is also often included in online speculation, though there was at least some attempt to offer reassurance: Bethesda boss Todd Howard reportedly suggested there could be hope for the studio.

As more chatter builds, one insider reportedly referred to the coming wave as “The Big One.” Now, another veteran voice in games has suggested it may end up being the largest mass layoff round the industry has ever seen.

“jfc, I just got word of a list of Xbox studio closures (no, not posting them). If it’s even close to true (and it’s from inside), this will likely be the largest single layoff event in gaming history,” Broussard wrote on Twitter.

He went on to underline what that could mean for the company’s reputation and momentum. “Xbox is going to be supremely unpopular for a very long time and the devastation is going to reverberate like the meteor that took out the dinosaurs,” he added. “On top of all that there will also be layoffs at the studios that remain.”

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In a follow-up, Broussard also indicated he believes Rare may be insulated, pointing to Sea of Thieves and saying it “does quite well.”

Of course, layoffs and closures are only one part of the broader picture. Xbox’s troubles have reportedly been building through other moves as well. Last week, the company raised the prices of its Xbox Series models by as much as $150. Then, more recently, reports surfaced claiming Xbox was stepping back from third-party deals tied to Xbox Game Pass.

Marcus Chen is a gaming journalist and industry reporter with more than 10 years of experience. He covers releases, announcements, and trends across PC, PlayStation, Xbox, and Nintendo, and keeps a close eye on the indie scene and esports. Previously an editor at several gaming publications, he now writes news, reviews, and breakdowns of major industry moments—from big showcases to updates on popular titles. His work is aimed at players who want a clear, fast read on what happened and why it matters.