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Xbox's October: more layoffs, a departing COO, Arkane's deadline and an $1,800 console

Four Xbox stories from one week, side by side. What Microsoft has said, what is only reported, and which dates to watch in November.

By Leonida Desk
High-confidence report Reported by a top-tier outlet. Not an official statement.

In one week, Xbox was reported to be planning three more rounds of layoffs, lost its first chief operating officer, was reported to have set a closure deadline for Arkane Lyon, and was reported to be pricing its next console at up to $1,800.1234 Some of this is confirmed and some rests on a single magazine report. Here is each story with what it rests on.

More layoffs, in three rounds

Fortune reported that Xbox plans further layoff rounds in October, November and January 2027, citing people familiar with the plans who said the plans could change.1 That would continue a restructuring Microsoft confirmed in July, in which 3,200 Xbox employees will eventually lose their jobs.5

The numbers so far: over 1,600 jobs went in July and 268 roles in September, which leaves about 1,600 still to come, spread into early 2027.6 Fortune also reported a Game Pass overhaul in which players would “choose features à la carte, including add-ons for console-only games, cloud gaming, and multiplayer”.7

The COO who lasted three months

Helen Chiang, who led Minecraft and spent 21 years at Microsoft, was promoted to Xbox’s first chief operating officer in July. She left on 23 October.2 Xbox CEO Asha Sharma’s memo was two sentences: “Helen Chiang is leaving Microsoft today. I’m grateful for her years of service and wish her well,”8

Microsoft would not explain the exit: “We don’t discuss individual personnel matters,”9 A source told Eurogamer that Chiang was allegedly terminated for policy violations. Eurogamer could not verify that, and neither can we.10

Arkane Lyon’s deadline: 13 November

The studio behind Dishonored and Deathloop reportedly has until 13 November to find a buyer, according to Le Monde, with 217 jobs at stake.3 The date comes from French law: a company with more than 1,000 employees must spend three months looking for a buyer before it can close an operational arm.11 Microsoft’s only comment was: “We continue to explore various options for Arkane as part of the ongoing French consultation process”.12

Arkane Lyon is the last studio whose fate is open. Double Fine, Undead Labs and Compulsion Games went independent, and Ninja Theory is likely to close after two acquisition deals fell through.13 Nobody has said what happens to its Marvel’s Blade, which The Verge previously reported was over budget and aiming for 2027.14

Project Helix: up to $1,800

The same Fortune report says Microsoft plans an Xbox handheld for holiday 2027 and the Project Helix console for holiday 2028.15 Its internal estimate puts Helix at $1,200 to $1,800 for consumers, unless Microsoft subsidises it.4 It also describes a disagreement between the Xbox and Windows teams over the handheld’s operating system.16

How firm is each story?

Story Rests on How firm
3,200 Xbox job cuts Microsoft, July5 Confirmed by Microsoft
Rounds in October, November, January Fortune’s sources1 Reported; plans could change
Chiang leaves Sharma’s memo8 Confirmed
Why Chiang left One unnamed source10 Unverified
Arkane deadline of 13 November Le Monde, unions3 Reported; Microsoft did not deny it12
Helix at $1,200 to $1,800 Fortune, internal estimates4 Reported; unsubsidised estimate

Context

A price that high is less strange than it sounds. The Xbox Series X launched at $500 and now costs $800, and the Series S has gone from $300 to $500.17 Eurogamer puts that down to the AI-driven shortage of memory and storage, which has pushed up the price of consoles from all three makers.18 Helix at $1,200 would still be a 50 percent jump on today’s Series X.19

What to watch

Whether a layoff round lands before the end of October, as Fortune’s timeline suggests.1 Who replaces Chiang: Sharma’s memo did not say. And 13 November, when Arkane Lyon’s search for a buyer is reported to run out.3

Footnotes

  1. Eurogamer: Xbox reportedly planning three more rounds of layoffs, with the first wave coming as early as this month, 2026-10-21. ↩ ↩2 ↩3 ↩4

  2. The Verge (games): Xbox’s first chief operating officer is out after just a few months, 2026-10-23. ↩ ↩2

  3. Eurogamer: As devastating Xbox “reset” continues, Dishonored studio Arkane Lyon reportedly only has until November to find a new buyer before it’s closed, 2026-10-23. ↩ ↩2 ↩3 ↩4

  4. Eurogamer: Xbox’s next-gen console to reportedly cost up to $1,800, with a Helix handheld coming in 2027 and a full release in holiday 2028, 2026-10-21. ↩ ↩2 ↩3

  5. Eurogamer: As devastating Xbox “reset” continues, Dishonored studio Arkane Lyon reportedly only has until November to find a new buyer before it’s closed, 2026-10-23. ↩ ↩2

  6. Eurogamer: Xbox reportedly planning three more rounds of layoffs, with the first wave coming as early as this month, 2026-10-21. ↩

  7. Rock Paper Shotgun: Further Xbox layoff rounds reportedly planned for this month, November, and January, while a Game Pass overhaul is in the works, 2026-10-21. ↩

  8. The Verge (games): Xbox’s first chief operating officer is out after just a few months, 2026-10-23. ↩ ↩2

  9. The Verge (games): Xbox’s first chief operating officer is out after just a few months, 2026-10-23. ↩

  10. Eurogamer: Xbox’s first chief operating officer Helen Chiang leaves Microsoft just three months into the job, 2026-10-24. ↩ ↩2

  11. Eurogamer: As devastating Xbox “reset” continues, Dishonored studio Arkane Lyon reportedly only has until November to find a new buyer before it’s closed, 2026-10-23. ↩

  12. Eurogamer: As devastating Xbox “reset” continues, Dishonored studio Arkane Lyon reportedly only has until November to find a new buyer before it’s closed, 2026-10-23. ↩ ↩2

  13. Eurogamer: As devastating Xbox “reset” continues, Dishonored studio Arkane Lyon reportedly only has until November to find a new buyer before it’s closed, 2026-10-23. ↩

  14. Eurogamer: As devastating Xbox “reset” continues, Dishonored studio Arkane Lyon reportedly only has until November to find a new buyer before it’s closed, 2026-10-23. ↩

  15. The Verge (games): Microsoft reportedly plans Xbox handheld in 2027, next-gen console in 2028, 2026-10-20. ↩

  16. Eurogamer: Xbox’s next-gen console to reportedly cost up to $1,800, with a Helix handheld coming in 2027 and a full release in holiday 2028, 2026-10-21. ↩

  17. Eurogamer: Xbox’s next-gen console to reportedly cost up to $1,800, with a Helix handheld coming in 2027 and a full release in holiday 2028, 2026-10-21. ↩

  18. Eurogamer: Xbox’s next-gen console to reportedly cost up to $1,800, with a Helix handheld coming in 2027 and a full release in holiday 2028, 2026-10-21. ↩

  19. Eurogamer: Xbox’s next-gen console to reportedly cost up to $1,800, with a Helix handheld coming in 2027 and a full release in holiday 2028, 2026-10-21. ↩

  • Xbox
  • Microsoft
  • layoffs
  • Arkane
  • Project Helix