As fans count down the final days until the full release of Gears of War: E-Day on October 6, the atmosphere inside developer The Coalition appears to be anything but celebratory.
Instead of looking forward to the end of a long development cycle and the launch of one of Xbox’s biggest games of the year, employees at the Vancouver-based studio are reportedly dealing with growing uncertainty over their jobs as Microsoft continues restructuring its gaming division.
Morale at the studio reportedly took a major hit after Gears of War: E-Day story director Juan Vaca was laid off shortly before the game’s release. Reports suggest several other employees have also recently left the studio, leaving the remaining team increasingly concerned that another round of cuts could follow after launch.
Layoffs just before launch have devastated morale
For years, The Coalition was viewed as one of Xbox’s more stable internal studios.
As the team responsible for one of Microsoft’s most recognizable gaming franchises, employees reportedly believed the studio was relatively protected from the layoffs and restructuring that have affected thousands of workers across Xbox and its various divisions.
That sense of security has now largely disappeared.
According to employees who spoke anonymously about the situation, Vaca’s departure was particularly demoralizing given how close it came to the release of a project that had taken years to complete.
One developer compared the feeling to spending years preparing something for an important family occasion, only to be locked out just before the celebration begins.
Rather than celebrating the launch, the mood inside the studio has reportedly become far more cautious. Employees are now concerned about what could happen in the weeks and months following release, with some fearing further layoffs or even a potential internal restructuring that could place The Coalition under another Xbox division.
The uncertainty has reportedly become severe enough that some developers are reluctant to celebrate the game’s release until they know what the studio will look like several months from now.
Developers are also worried about Metacritic bonuses
Job security is not the only concern.
According to an internal email reportedly verified by Eurogamer, developers at The Coalition are eligible for a financial bonus tied to Gears of War: E-Day’s Metacritic performance.
The payout is expected toward the end of October, but there is an important condition: developers must still qualify as full-time employees at the time the bonus is paid.
That requirement has created significant anxiety within the studio.
Employees are reportedly worried that anyone affected by another round of layoffs between the game’s October 6 launch and the expected bonus payout could potentially lose access to money they helped earn through years of work on the project.
Those recently affected by layoffs, including Vaca, are reportedly still expected to receive their bonuses if the required Metacritic target is reached because they remain on payroll during the relevant period.
However, the situation for employees who might be laid off after launch but before the payout remains less clear.
The possibility has apparently become a dark running joke among members of the development team, while distrust toward Xbox leadership has continued to grow following months of restructuring across Microsoft’s gaming business.
E-Day launches during one of Xbox’s most uncertain periods
The situation becomes even more complicated when considering the commercial expectations surrounding the game itself.
Gears of War: E-Day launches worldwide on October 6, 2026 for Xbox Series X|S and PC, including Steam, and will also be available through Game Pass from day one. Players who purchased the Premium Edition have already been able to play through early access since October 1.
Unlike several other major Xbox franchises that have expanded to PlayStation 5, E-Day will not launch on Sony’s console, making it one of Microsoft’s biggest remaining console-exclusive releases.
That puts additional attention on the game’s performance at a time when Xbox is undergoing major strategic changes and increasingly focusing resources on its biggest franchises.
Early critical reception has been strong, but even that has done little to ease concerns inside The Coalition.
For the developers who spent years building E-Day, what should have been a moment of celebration has instead become a period of uncertainty over whether they will still have their jobs once the launch excitement fades.
Xbox has so far declined to publicly comment on the specific concerns raised by employees at The Coalition.
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