The recent layoffs at Xbox Game Studios, which saw Microsoft cull 3,200 positions, sparked a mass wave of protests from various studios inside the Xbox collective, including powerhouses like Bethesda. It was clear following the layoffs that staff remaining at Microsoft-owned studios were concerned about their future, and following the layoffs, the Communications Workers of America has announced that it has officially ratified a new contract for "nearly 1,900 workers across Blizzard."

The actual contract has not been made public, but, as per the announcement, the new union contract secures wage increases, a hybrid workweek with two remote work days per week, remote work and disability accommodations, and protections against generative AI. Blizzard isn't the only game studio looking to union bargaining as a solution to issues in the gaming industry. Rockstar workers recently formed the Rockstar IWGB Game Workers Union in response to alleged unjust and retaliatory firings of 31 workers and fears of layoffs following the launch of GTA VI.Game Developer reports that Blizzard responded to the contract ratification with the following statement:

Johanna Faries, President, Blizzard EntertainmentWe appreciate the dedication and engagement of our represented employees and the bargaining committees throughout this process, as well as every Blizzard employee whose work continued alongside it. The ratification of these agreements marks a significant milestone and reflects our shared commitment to continuing to work together in support of our teams and our players.

Following the recent confirmation that layoffs related to Asha Sharma's Xbox reset have resulted in significant layoffs at ZeniMax-run studios—amounting to 50% of Id Software's workers and 25% of Bethesda's—OneBGS, the CWA-affiliated Bethesda Game Studios Union, has announced that its workers has organized marches outside Bethesda's studios in Montreal, Canada; Austin and Dallas, Texas; and Rockville, Maryland. CWA representatives said in an email seen by Game Developer that the layoffs have affected as many as 440 unionized workers at Bethesda and ZeniMax, and the union says that the protest will start on July 15 to fight for the rights of its workers.

"Microsoft and ZeniMax leadership have made the devastating decision to slash over 440 positions across BGS, ZOS, id, ZWU (QA) and ZeniMax corporate (including CTO and CSUR). Because we organized and certified our unions, we have hard-won legal rights and protections that non-unionized studios simply do not have. The company wants us to accept this as a done deal and quietly disappear. We won't let that happen. Our next steps are to mobilize. We need every single member visible and unified."

It was recently revealed that Microsoft is planning a massive round of layoffs at its Xbox Gaming division, with several studios allegedly already on the brink of closure shortly after the news of layoffs broke. Now, according to Wccftech, who attended a virtual press conference by the Communications Workers of America (CWA), over 3,500 unionized Xbox employees are preparing to fight back against the rumored layoffs. Right off the bat, Frank Arce, vice president of CWA District 9, kicked things off by declaring that workers at Xbox, unionized or not, "will not be treated as disposable," with developers and former developers from ZeniMax Online, Activision-Blizzard, and Arkane Austin contributing their experiences and hardships in the gaming industry, with everyone in agreement that Xbox employees needed protections against layoffs, including advanced notice, hiring freezes to allow former employees an opportunity of internal transfers, and strong severance packages where layoffs are necessary.

The union will wait until Microsoft announces the Xbox layoffs before calling Microsoft to the negotiations table—although there have apparently already been hushed internal discussions about the future of the aforementioned studios facing closure. Members who spoke at the meeting were adamant that Xbox workers needed certainty, with Blizzard editor, Alison Veneto, saying that "Everyone at Xbox deserves long-term certainty on where they stand should layoffs happen," and others emphasizing the importance of knowing that, in the event that layoffs are necessary, every other avenue has already been exhausted. CWA higher-ups spoke on the discrepancy between Microsoft's announced intentions and its actions, such as lamenting recent AI-inflicted RAM price hikes when announcing the Xbox Series X|S price increases while simultaneously pouring money into AI investment.

Heart Machine, the studio behind Hyper Light Drifter, its spiritual successor, Solar Ash, and its actual successor, Hyper Light Breaker, recently implemented a round of layoffs following the launch of Hyper Light Breaker, and it appears this round of layoffs—the second in recent memory—has not been taken lightly by the remaining developers at the studio. According to a recent report by Game Developer, employees at Heart Machine have officially joined the CWA (Communication Workers of America) in a voluntary bargaining agreement in the name of job security and workers' rights. The union members are reportedly currently evaluating their priorities and what they plan to bargain for, but the developers at the studio say that the justification for joining the union is to be able to protect the craft and the creative collaboration that enables game designers and video game workers to create "something they'd want to play themselves." According to an announcement by The CWA, a majority of workers at Heart Machine signed the unionization agreement, meaning contracts at the studio will now be drawn up with CWA representation.

Unionization has been something of a trend in recent years in the video game industry, with video game voice actors joining the protracted
SAG-Aftra strike in 2024 and 2025 seeking protections against the exact sorts of layoffs that previously affected Heart Machine developers, in addition to protections against the AI systems currently taking over the gaming industry. 2025 also saw the launch of the United Video Game Workers' Union, which seeks similar protections against practices like layoffs in the name of profit. A recent video game industry survey also indicated that as many as 82% of video game workers support unionization, with younger workers responding even more positively. The news of Heart Machine joining the CWA also follows the announcement that EA is cutting an unspecified number of jobs at its Battlefield 6 studios.