Video Game Industry Updates: Sony's Digital Shift, Obsidian Layoffs, Assassin’s Creed Remake - July 2026

Key points

• •Sony’s announcement to stop producing physical PS5 game discs by 2028 signals a major industry shift towards fully digital distribution, with the upcoming PlayStation 6 expected to be digital-only. This move has elicited varied reactions from gamers concerned about game ownership and preservation.[GameSpot]
• •Following significant layoffs that cut about 25% of its staff, Obsidian Entertainment cancelled the development of the Avowed sequel but is now working on a new Fallout RPG. This pivot reflects Microsoft's strategic reshaping of its Xbox studios amid job reductions affecting over 3,200 employees, including 136 layoffs at id Software.[GameSpot][GamesRadar+]
• •Bithell Games revealed Vampirium: 1997, an immersive horror title set in an alternate 1990s where players control the bloodthirsty vampire King of England. Developed by the creators of Thomas Was Alone and Tron: Catalyst, the game expands on the studio's innovative storytelling in horror.[GameSpot]
• •Mortal Shell 2, the eagerly awaited sequel to the Soulslike action game, is slated for release in August 2026, quickly rising as one of the year’s most anticipated titles in the genre. Fans are excited about its challenging gameplay and expansion on the original’s mechanics.[GamesRadar+]
• •Square Enix’s mobile game Final Fantasy VII: Ever Crisis will officially shut down in October 2026, ending the mobile outpost of this iconic franchise. This closure follows years of operation and marks a notable endpoint for the Final Fantasy VII mobile adaptations.[Kotaku]
• •Ubisoft’s Assassin’s Creed Black Flag remake garnered the highest series review scores since the original 2013 game, signaling a successful return to one of the franchise’s most beloved entries. The remake’s positive reception may encourage further remasters of fan-favorite Assassin’s Creed titles.[Kotaku]
• •Bungie plans to wind down support for Destiny 2 after releasing a final surprise update as part of its closing lifecycle phase. The developer announced limited ongoing support, indicating the game is entering a maintenance mode before full retirement.[IGN]
• •Minecraft’s latest update adds a long-requested cushion item, enabling players to sit, fast travel, and engage in playful pranks. This feature enhances player interactions and addresses fan feedback 17 years after the game’s initial launch.[Polygon]
• •Nintendo announced the shutdown of Mario Kart Tour for iOS and Android platforms in September 2026, ending the mobile iteration of the franchise. Current subscribers will receive Gold Pass benefits ahead of the closure, marking the end of this mobile racing experience.[Siliconera]

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