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Microsoft Job Cuts Hit Game Development - DTNSB 5053
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Microsoft Job Cuts Hit Game Development - DTNSB 5053

Sony is bringing one of its exclusive titles to the Xbox Series X|S for the first time, and Dr. Niki talks about why we should welcome biodegradable robot overlords.

Starring Jason Howell, Huyen Tue Dao, Tom Merritt and Dr. Niki.

JASON: This is the Daily Tech News for Thursday, July 3, 2025. We tell you what you need to know, follow up on the context of those stories and help each other understand.

HUYEN: Today Dr. Niki tells us about biodegradable robots and we have more details on Microsoft’s big layoffs and it has a lot to do with gaming. [19:48]

I’m Jason Howell,

I’m Huyen Tue Dao

JASON: Let’s start with what you need to know with the big story.

BIG STORY

Microsoft Makes Deep Job Cuts Across Xbox Division, Cancels Games
Blizzard is giving up on its Warcraft mobile game amid layoffs
Microsoft is Shutting Down The Initiative and Cancelling its Perfect Dark Reboot
Microsoft Addresses Phil Spencer Retirement Rumor

JASON: Yesterday, Tom and Jenn talked briefly about news that Microsoft was laying off close to 4% of its employees, or around 9,000 workers. Now we know a bit more about what that means in a few related stories.

Bloomberg reported that hundreds of employees were let go from the company's gaming division. This follows another round of layoffs last January when the company let go of around 6,000 employees across its different vertical. Phil Spencer told employees that workers eliminated in Xbox will be given the opportunity to apply for open roles across Microsoft Gaming and given priority for those positions.

Along with these cuts comes news of the direct impact on games projects.

  • The Initiative, the company's US-based studio, will shut down and with it, the Perfect Dark reboot that's been in development since 2018.

  • Rare is reportedly cancelling development of Everwild after first being announced in 2019.

  • Blackbird, an MMORPG from Zenimax Online Studios, is canceled.

  • Blizzard announced its free-to-play mobile game Warcraft Rumble will no longer receive new content.

On a positive note, none of the first-party games shown by Microsoft at its Xbox Games Showcase this year are being cancelled.

Finally, there had been rumors after the cuts were announced that Phil Spencer, CEO of Microsoft Gaming, was preparing to retire after the release of the next-gen Xbox with plans to have Sarah Bond, President of Xbox, succeed him. Phil directly addressed the rumor on X stating it was “made up.” Xbox head of Comms Kari Perez also told The Verge “Phil is not retiring anytime soon.” So, the Xbox legend isn't going anywhere—breathe that sigh of relief.

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JASON: There’s more we need to know today, let’s get to the briefs.

BRIEFS

Sony Brings Helldivers 2 to Xbox Series X|S
HUYEN: Sony is making history by bringing a PlayStation-exclusive title, Helldivers 2, to Xbox for the first time. Developed by Arrowhead Game Studios, the game was previously available on PlayStation 5 and PC, and will now launch on Xbox Series X|S on August 26, 2025, with full cross-platform play. Seen by many as one of the best games of 2024, Helldivers 2 features cooperative, sci-fi gameplay and allows players across all platforms to team up. Pre-orders are now open, featuring bonus content for early buyers.

Samsung seems to have leaked its own trifold phone design
JASON: Samsung seems to have accidentally revealed its upcoming trifold phone design through animations found in the latest One UI 8 software update. The device, labeled “Multifold 7” in the animation files, seems to feature a unique dual-hinge system that allows the two outside panels to fold inward while the center panel acts as the cover display. This differs from Samsung’s own prototype hardware shown in the past with a design that folds in a Z-shaped approach. The Huawei Mate XT Ultimate Design, which launched last September, also has a Z-shaped folding mechanism. Samsung’s Unpacked event takes place on July 9 so it’s possible we could find out more very soon.

Google rolls out its new Veo 3 video generation model globally
HUYEN: Google is now rolling out its massively popular Veo 3 video generation model to more than 159 countries. Paid subscribers of Google’s AI Pro plan can access the model to create up to 3 new videos per day. Google also shared that they are working to bring image-to-video generation into the Gemini app.

Netflix is Reportedly Exploring New Live Content With Spotify
JASON: Netflix is reportedly in talks with Spotify to expand its live programming, looking toward projects like music awards shows, live concerts, celebrity interviews, and quick-turnaround documentaries. Netflix is looking to attract new audiences and advertisers in its partnership with Spotify. Netflix has already experimented with live content with weekly WWE Raw broadcasts, the Mike Tyson–Jake Paul fight, and the 2025 Screen Actors Guild Awards.

Right to repair bill in Texas has been signed into law after winning by a landslide victory, with not a single vote against it
HUYEN: Texas passed right-to-repair legislation, becoming the seventh state to do so with unanimous approval in both the House and Senate. Starting September 2026, Texans and local repair shops will have legal access to manuals, parts, software, and tools to fix digital devices sold in the state that cost more than $50. The law excludes medical devices, vehicles, game consoles, some circuit boards, and anything involving trade secrets. Most handheld PCs and consumer electronics are included. The law does not regulate pricing on the replacement parts or tools.

FaceTime in iOS 26 will freeze your call if someone starts undressing
JASON: Apple’s iOS 26 introduces a new FaceTime safety feature that will automatically freeze both audio and video when nudity is detected during a call. FaceTime will display a warning once nudity is detected, giving users the choice to resume the call or end it. The function appears to be active for all users in its current beta form, not just on child accounts. It’s unclear whether Apple will keep it that way or limit it to younger users in the final release.

Google’s fix for Pixel 6a battery overheating issues arrives next week
HUYEN: Google plans to roll out its mandatory fix for Pixel 6a phones starting July 8, 2025. The company is seeking to address battery overheating concerns by pushing out an update that reduces battery capacity after 400 charging cycles to lower the risk of overheating and the potential of fire incidents. A notification will be sent to users at 375 cycles alerting them of the upcoming change. Google is also offering free battery replacements for eligible users with impacted devices.

Chuck E. Cheese is opening arcades for adults
JASON: Chuck E. Cheese is launching “Chuck’s Arcade,” a spin-off concept designed for adults. The arcade will house classic cabinets along with modern games and yes, the animatronic characters will be there too. Adults can win prizes, get their hands on retro merch, and of course, buy lots of beer. Ten locations have already opened in cities like St. Petersburg, Tulsa, El Paso, and St. Louis.

HUYEN: Those are the essentials for today. Let’s dive a little deeper.

IN DEPTH

JASON: Sadly, robots are not immortal, and there’s some surprising reasons why they shouldn’t be, beyond the obvious hedge against them taking over. Dr. Niki explains why we need biodegradable robots. [TRT 7:47]

PROMO

HUYEN: What do YOU want to hear us talk about on the show? One way to let us know is in our subreddit. Submit stories and vote on them at www.reddit.com/r/DailyTechNewsShow/

HELPING EACH OTHER UNDERSTAND

JASON: We end every episode of DTNS with some shared wisdom. Today David is helping us understand.

HUYEN: David writes:
Hi,

I was listening to your conversation with Andy Beach about provenance in AI, and while I feel strongly that creators such as the BBC are not being adequately compensated for the value being extracted from their context, I agree that it'll be a very tricky knot to unpick. I wonder if the best solution would be something like the Spotify model, where the AI companies have a set amount, perhaps calculated as a percentage of their profits, and it is apportioned to creators on the basis of the fraction that their content makes of the whole OpenAI corpus.

Best wishes,

David

JASON: What are you thinking about? Got some insight into a story? Share it with us feedback@dailytechnewsshow.com

JASON: Thanks to Dr. Niki and David for contributing to today’s show. And thank YOU for being along for Daily Tech News Show. You can keep us in business by becoming a patron, atPatreon.com/dtns. We’ll see you Monday!

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