// GAMESPOT — GAMING
This Week In Games Was Bad, But Next Week May Be Worse
While it can seem like every week feels bad in the games industry, this past week felt especially awful. You're not wrong for thinking so, too, and the start of this week wasn't that great either. But what if I told you that it could get even worse? It doesn't sound possible, but trust me, it appears it definitely could.
Let's look at what happened last week.
On June 22, news broke that Ubisoft co-founder Claude Guillemot died in a plane crash on June 19. His brother, Yves Guillemot, paid tribute to the late co-founder in a statement, saying that Claude "helped shape Ubisoft with an entrepreneurial spirit, curiosity, and unwavering optimism." This was quite unfortunate news to start the week.
In the background of this announcement has been the drama surrounding Santa Monica Studios' upcoming action-adventure game God of War: Laufey, with gamers blaming "gender" for the game's narrative decisions despite the PlayStation-owned developer building toward Laufey for almost a decade now.
You also had CD Projekt Red--the publisher, not the developer--talking about how its reputation still hasn't fully healed following the disastrous launch of Cyberpunk 2077, an Ocarina of Time fan project shutting down for fear of "Nintendo ninjas," and the announcement of the Steam Machine's $1,000 price tag--which the internet had a lot of thoughts about.
June 23 came with some bombshell news. Alongside the confirmation that Lords of the Fallen II was delayed to avoid Grand Theft Auto 6's imminent release and an EA executive saying that the company's embrace of AI saw a "real rise of creativity," Rockstar Games announced that GTA 6 won't ship with a physical disc at all. The internet wasn't too happy about this news, and some retailers said they're refusing to carry physical copies of the game now.
Things started to get particularly bad on June 25. News began circulating that the looming Xbox layoffs were about to start, with South of Midnight developer Compulsion Games reportedly being hit first. That same day, Bungie let go of "most" of the Destiny team and "some" of the Marathon staff in a massive layoff. Justin Truman, the head of Bungie, also stepped down after less than a year on the job. And then, Microsoft announced that Xbox consoles will get a price hike in August, and hinted at another increase coming in 2027 or 2028--capping off a bad day with worse news.
Now fast-forward to the last couple of days.
On June 29, Activision began promoting Call of Duty: Modern Warfare 4--which drops on October 23--by reminding you that it won't launch on Xbox Game Pass during its first year. This isn't necessarily new news, as Microsoft announced in April 2026 that new Call of Duty titles won't hit the subscription service going forward. However, it's still a blow when the last two entries--Black Ops 6 and Black Ops 7--both landed in the vault day-one. Now, if you want to play Modern Warfare 4 or any new Call of Duty, you either have to pay full price for the game or wait one full year if you have an active Game Pass subscription. It's odd, considering Microsoft acquired Activision--and Call of Duty--for $69 billion in 2023, but the decision could be because putting the mega-hit military shooter on Game Pass came at a loss.
On the same day, Sony tried to temper expectations for the PlayStation 6, clarifying that it won't sell hardware at a "significant" loss anymore. Basically, the company is warning that the PS6 won't be cheap at all. On the other side of the coin, reports came out that the Xbox-owned studio Undead Labs, developer of the State of Decay franchise, is at risk of closure. (It's worth noting that several other Xbox Game Studios, like Double Fine and Ninja Theory, are also at risk unless a buyer is found.)
Microsoft came with even more hits on June 30, as Hitman developer IO Interactive suffered layoffs after funding was pulled from the studio's in-development fantasy RPG. As if things couldn't get any worse that day, a report sugge