Epic Cuts 1,000+ Jobs | Sony Closes Dark Outlaw | PAX East Indie Takeover

Epic Games CEO Tim Sweeney confirmed the company is laying off over 1,000 employees, attributing the cuts to a downturn in Fortnite engagement that began in 2025. The layoffs also coincide with the sunset of Fortnite modes like Rocket Racing and the removal of Horizon Chase titles from storefronts.

The move signals a broader strategic retreat from live-service experiments that failed to sustain large enough audiences, even as Epic continues to invest in its core ecosystem.

Sony has closed Dark Outlaw Games, the studio led by Call of Duty veteran Jason Blundell, before it released a single game. The closure underscores a troubling trend where veteran-led teams are being dissolved before shipping any titles.

The shutdown is part of a broader wave of consolidation and cost-cutting across PlayStation Studios, raising questions about Sony's appetite for new internal IPs during a turbulent market period.

Day 3 of PAX East 2026 in Boston saw indies dominate the show floor while some AAA publishers maintained a lower profile. With 300+ exhibitors, the PAX Rising showcase and indie publisher booths drew the longest lines this year.

Notable highlights include ShantyTown's viral success with 30,000+ demo players, Bubsy 4D's unexpected buzz, and strong showings from Ecumene Aztec and Demon Tides. The 'reverse takeover' signals a shifting balance of power at major consumer shows.

Sony has announced global price rises for all PS5 models starting April 2, 2026. In the UK, the base PS5 now costs £570, the Digital Edition £520, and the PS5 Pro nearly £800. This is the second hike in a year and the first to hit the United States.

The increases are blamed on continued global economic pressures, but analysts widely point to the global memory shortage driven by AI datacenter demand as the primary factor squeezing console margins.

Dead by Daylight publisher Behaviour Interactive has acquired The Fun Pimps, the studio behind the zombie survival sandbox 7 Days to Die, which has sold over 20 million copies. The studio will continue to lead development but now with Behaviour's support to expand the team.

The deal adds a proven live-service survival title to Behaviour's portfolio and gives The Fun Pimps access to publishing infrastructure and marketing muscle as it continues to update its flagship game.

Warhorse Studios, developer of Kingdom Come: Deliverance 2, is under fire after a former translator alleged the studio fired translators to replace them with AI to save money. The translator was quoted as saying, 'I feel betrayed.'

The controversy highlights growing tension in game localization as AI tools become more capable. While studios see cost savings, veteran localizers fear quality erosion and job displacement in an already tight market.

The Genshin Impact Version 6.5 Special Program aired on March 27, revealing new 5-star Geo bow character Linnea, new Mondstadt areas including Dornman Port and the Temple of Space, and a rerun schedule for Chasca, Lauma, and Nefer.

The update launches April 8, 2026, and continues the game's expansion of its original region with new boss encounters, a 5-star bow weapon, and seasonal events including Where Waves Meet the Reef.

Krafton has removed the tactical shooter spin-off PUBG: Blindspot from Steam after its servers lasted less than two months. The company described the move as being in line with its policy of using Early Access to quickly validate a game's potential.

The rapid shutdown underscores the brutal economics of live-service shooters, where player retention and monetization must prove out almost immediately or publishers pull the plug.

Alinea Analytics estimates that Bungie's Marathon has sold approximately 1.2 million copies since its early-March 2026 launch, with the majority of sales on Steam and PlayStation 5 a distant second. The figure is well below expectations for a $3.7 billion first-party acquisition.

The tepid launch raises fresh questions about Sony's massive investment in Bungie and whether the studio can deliver the live-service hit needed to justify the acquisition price.

Meta has reportedly laid off approximately 700 employees, with its Reality Labs VR/AR division among those affected. The cuts come even as Meta reported that Quest usage reached an all-time high in 2025, with over 100 titles generating more than $1 million in gross revenue.

The disconnect between growing platform usage and shrinking headcounts reflects broader uncertainty in the XR industry about the path to profitability despite hardware traction.