Microsoft Announces Xbox Game Pass June 2026 Lineup Amid Reports of Studio Closures
Microsoft has announced the Xbox Game Pass June 2026 Wave 2 lineup of games, which includes titles such as EA Sports FC 26, RV There Yet?, Winds of Arcana: Ruination, and Call of Duty: Vanguard. This revelation comes amidst unconfirmed reports of potential studio closures, including Ninja Theory, Double Fine, and Compulsion. The company's gaming division is undergoing a 'reset' by new Xbox boss Asha Sharma, driven by financial scrutiny, including a reported 3% accountability margin and a decline in annual revenue despite significant investments.
Microsoft has announced the Xbox Game Pass June 2026 Wave 2 lineup, with several titles slated for release during the latter half of June and early July. The new additions include EA Sports FC 26, RV There Yet?, and Winds of Arcana: Ruination. Additionally, the 2021 title Call of Duty: Vanguard is set to join Game Pass this month, alongside Junkster, which released on June 16, and Abyssus on June 25.
This announcement is set against a backdrop of reports concerning potential studio closures and mass layoffs within Microsoft's gaming division. Specific studios such as Ninja Theory (developer of Hellblade), Double Fine (developer of Psychonauts), and Compulsion (developer of South of Midnight) are reportedly negotiating with Xbox to prevent closure. Some studios may have the opportunity to pursue independence, potentially alongside layoffs.
The situation follows a "reset" of the gaming business by new Xbox boss Asha Sharma, which has reportedly led to high-profile departures, including Xbox Game Studios boss Craig Duncan. Microsoft is also said to be accelerating development on new The Elder Scrolls, Fallout, and Halo games while considering restructuring or spinning off its gaming branch.
Financially, Microsoft's gaming business is reported to have a 3% accountability margin, a decrease year-on-year. According to a memo from Sharma, the company has invested over $20 billion in content, platform, and hardware subsidies (excluding Activision Blizzard King) over the past five years, yet its annual revenue has declined by nearly half a billion during that period. Microsoft CEO Satya Nadella has stated that the Xbox team needs to "innovate both in hardware, as well as in the games, going forward in an economically viable way," noting that more monetization of Xbox games occurs on YouTube than at Xbox.
Past strategic adjustments for Game Pass include a 50% price increase in October 2025, which reportedly led to the loss of millions of subscribers, followed by a subsequent price cut as one of Sharma's initial strategy changes. The reported layoffs are anticipated to take effect by June 30, coinciding with the end of Microsoft's financial year.
(Source: IGN)
