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Mortal Kombat creator polled X on fighting games ... Xbox's won

Is it likely? Probably not, but as a Killer Instinct fan, one can hope.

Despite backlash to some aspects of the console, the Xbox One had arguably one of the strongest launch line-ups in the platform's history, with titles like RYSE and Titanfall from first-party, and games like Battlefield 4 and Assassin's Creed: Black Flag from third. For me, the best launch title was Killer Instinct, however, which revived Rare's classic fighting game for a new era.

Killer Instinct is a combo-heavy fighting game that is easy to play, and difficult to master. Breaking enemy combos with a satisying "C-C-C-C-COMBO BREAKER" announcer effect elevated the game to its legendary status, atop its violence and creative character line-up.

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PlayStation cornered the fighting game audience pretty hard in the years to follow, landing exclusivity for Street Fighter for a time, alongside other major fighting games.

Riptor roaring

Play as a cyborg raptor? Why not. (Image credit: Microsoft)

Killer Instinct struggled to maintain pace, and ultimately fell into maintenance mode not long after, although it had strong post-launch support bringing in fan-favorite fighters alongside various new ones. It even picked up combatants from other Xbox franchises, such as RAAM from Gears of War and the Arbiter from Halo.

Aside from the occasional update and balance change, Killer Instinct has remained largely dormant over the last few years. There is a small team at Xbox who works on maintaining the game, but the player base is miniscule, likely in the dozens rather than hundreds going from Steam stats.

Could it be revived, though? Mortal Kombat creator Ed Boon has once again polled users on the state of the fighting game industry, and it's not the first time Boon has spoken about interest in picking up Killer Instinct.

If you could have just ONE game come back for another swing at the plate.....September 27, 2026

He asked users to vote on which recent fighting game should grab a second chance, including Riot's ill-fated 2XKO, Rumbleverse, Warner Bros' cancelled Smash-clone MultiVersus, and Xbox's dormant Killer Instinct.

As of writing, Killer Instinct leads by a sizeable margin with over 50% of the vote.

Microsoft's gaming portfolio is currently undergoing a lot of upheaval, with Obsidian moved to Bethesda to work on Fallout, and Halo Studios practically shuttered, with the franchise handed off to Call of Duty producers at Activision.

There's probably not a ton of bandwidth at Microsoft right now to explore what a new Killer Instinct might look like ... but what if Warner Bros' studio NetherRealm and Ed Boon's Mortal Kombat team picked up the flag?

Killer Instinct always had huge potential in my view, it was always my personal preferred fighting game. There are major influencers who often advocate for its revival, like Maximilian_Dood.

As a Spinal enjoyer, I still had a ton of fun playing it despite how invariably poor I was at PvP. It would be intriguing to see a Mortal Kombat-style cinematic take on Killer Instinct's lore and universe — which is undeniably intriguing. It's unclear whether or not Warner Bros. would have appetite for involvement here too, given its attempts to turn Mortal Kombat into a viable movie franchise.

There's probably a universe where Killer Instinct could be revived as a high-quality fighting game, with a cinematic single player experience, with franchising potential into TV and movies. You could draft characters from Blizzard games, or Fallout, and beyond too ... alas, it's probably unlikely.

Still, it's fun to dream, no? What IF?

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Xbox denies $400M PHYSINT budget rumors — here’s what sources say

Rumors about Xbox's deal with Hideo Kojima's upcoming "Action Espionage" title have been swirling recently.

Xbox is undergoing "restructuring" over the past few weeks, leading to thousands of layoffs and staff reductions in the form of divestitures. Microsoft's new gaming CEO Asha Sharma has made no secret of the intent to focus on big-name franchises like Fallout and The Elder Scrolls, and less time on smaller projects like those produced by Double Fine or Compulsion — both of whom are now fully independent teams. Existing studios like Obsidian have been moved to be closer to the Fallout franchise for example, and Halo Studios itself was recently shuttered (in essence) with the franchise handed off to Call of Duty publisher Activision.

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There have been some questions about the timing of Xbox's announcement in partnership with Hideo Kojima's "PHYSINT," as a result. With some (erroneously) speculating that the closures have been designed to fund Kojima's long-awaited return to the espionage genre. Metal Gear Solid is arguably among the top 5 (or maybe even top 3) most legendary franchises of all time. To get the spiritual successor to that on Xbox is a pretty huge coup, considering it was originally announced by PlayStation.

But uh, is this project going to cost almost half a billion dollars? And did it lay off thousands in order to do it? The answer is "no," trusted and verified sources tell me.

Chris Dring says “PHYSINT budget at Xbox is reportedly around $400 Million”Jason Schreier was asked to comment; he said the Xbox deal for PHYSINT potentially significantly less than $400 Million “I am hesitant to get into exact numbers without seeing documentation or… pic.twitter.com/KCIHiADaO4September 26, 2026

Speaking on his podcast, Chris Dring of The Game Business reported that Xbox's budget for PHYSINT is at $400 million. He has since walked back the claim after Bloomberg's Jason Schreier poured cold water on the figure.

I was told similarly by first-hand sources with direct knowledge of the contracts that the figure for PHYSINT is far lower than what is being reported here. It has been suggested to me that the "$400 million" figure is potentially what Sony and PlayStation might've been on the hook for until they cancelled the deal. Xbox and Kojima are building towards their Xbox projects on a "fraction" of this reported figure.

I'm told Xbox negotiated a deal with Kojima Productions that includes both movie and TV licenses for PHYSINT, and it also included enhanced terms for OD — Kojima's anticipated atmospheric horror game for Xbox.

We're seeing a more thrifty Xbox, and a more thrifty AAA industry in general

Hideo Kojima in a black blazer and t-shirt stands in a white room next to a person wearing a futuristic white armored suit holding a black flag.

Hideo Kojima brings a level of prestige to Xbox that the brand has lacked in the past. (Image credit: Kojima Productions | Microsoft)

There has been a lot of discussion about budgets in recent years. Some estimates suggest Grand Theft Auto 6 has had a budget upwards of a billion dollars, for example. Developers from the likes of Saber Interactive, Remedy, and Bloober Team have all commented on building AAA-grade experiences on budgets in the tens of millions, rather than hundreds of millions.

Game development in the United States has become incredibly expensive. I'm told part of this revolves around salary competition for AI-adjacent software engineering disciplines, that often share cross-over hiring processes and salary scales with gaming companies. The closer you are to an AI development hub (like Microsoft HQ in Redmond, WA), the greater the competition for salaries becomes ... making game development potentially unviable from a purely fiscal perspective in some regions.

Microsoft has been exploring outsourcing in Eastern Europe, the United Kingdom, and other regions where game development is more "affordable" to that end. PHYSINT might have spendy Hollywood actors tied to the project, but Xbox CEO Asha Sharma has quite loudly stated goals around cost-saving and cost-cutting.

Movies and TV shows are also becoming an increasingly crucial tool for both marketing and offsetting costs for gaming projects. Selling the rights to streaming platforms like Netflix and Amazon Prime can feed back into game development budgets, and creates a symbiotic marketing beat (if indeed, the content is actually good). Given Kojima's penchant for cinematic games, PHYSINT should be at least one project that pays dividends if everything is executed well.

... I suspect Xbox will have to give Kojima more flexibility than they may want to if they do want the game to hit that coveted quality bar.

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Mythic Achievement details surface in the latest version of the Xbox app

Xbox players have long wanted an answer to PlayStation's Platinum Trophy, something to chase that rewards achievement hunters for getting them all.

We're finally getting that, and thanks to some poking around in the latest version of the Xbox app on Windows 11, we've got some new information to go on.

For one, the badge and the sound that plays when it unlocks have now been seen (and heard) for the first time.

A new update for the Xbox PC App reveals: Xbox Mythic Achievement; plus symbol and unlock sound.The Xbox Mythic Achievement is expected to be a 100% Gamerscore game completion reward. pic.twitter.com/STLisa4ubzSeptember 22, 2026

I think it looks pretty good. I mean, it's just a little icon, after all, but I think the design is certainly a little fancier than PlayStation's equivalent, which is just a trophy.

Xbox hasn't publicly detailed anything as yet around the Mythic Achievement and its requirements, but it was always assumed we'd be getting something that rewards for completing all the achievements attached to a game.

The folks at XCT.live have been poking around inside the bits of the app we mere mortals never see and appear to have extracted some key bits of information on how the new Mythic Achievement will work. Crucially, it doesn't look to be a fully 100% requirement, isolating any achievements linked to DLC outside of the Mythic unlock process:

"The Xbox app works out Mythic from a group of achievements that it calls BaseGame. The unlock toast says “Unlocked all N achievements in the original game”. The game page has a “Required for Mythic achievement” filter, and it labels every achievement outside the group as “Add-on”. DLC achievements are not in the BaseGame group, so they do not count. The app counts achievements, not Gamerscore. It is not a “100% Gamerscore” reward."

Code in the app indicates that it is not a 100% Gamerscore requirement, either. It counts achievements within the BaseGame group, not the associated Gamerscore. So it sounds like if you start a game that had more achievements added over time, you'll still be able to get the Mythic Achievement by hitting all the original ones, not having to get all of the new ones as well.

Hopefully it's also retroactively applied to games that you've already completed the requirements for. Either way, it looks like it's beginning to gather steam, and hopefully we'll see it for ourselves sooner rather than later.

What's the first game you'll be trying to get the Mythic Achievement for? It's got to be here in time for GTA 6, hasn't it?

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Halo’s future moves to Activision while Obsidian folds into Bethesda

Microsoft just revealed another round of "restructures" for Xbox and its game studios, with Ninja Theory, Obsidian, Turn 10, Halo Studios, and others impacted in various ways.

Last July, Microsoft announced it would be looking to reduce its gaming workforce by around 3,200 staffers. Sources suggest that the total figure will fall short of that previous estimate, as Microsoft opts for restructuring and moving employees around to other departments as much as possible.

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One way Microsoft has sought to achieve some of this is via divestitures. Double Fine and Compulsion have both returned to being independent game studios, for example, with the former starting a Kickstarter to fund its next title. Undead Labs of State of Decay fame is also moving to another publisher, although it has not been revealed exactly who this is just yet. Discussions around the future of Arkane are still ongoing.

Unfortunately, Microsoft revealed today that two previous attempts to divest Ninja Theory of Hellblade fame have fallen through. Microsoft has entered into redundancy consultations with the UK government as a result, per local law. Sources say Microsoft is still trying to find a buyer for Ninja Theory and the Hellblade franchise, but it's still looking a bit bleak.

Furthermore, Halo Studios is also looking at major layoffs in the 100s, as Microsoft seeks a major restructure to the way Halo is run.

Master Chief wearing green tactical armor and a gold visor, holding a futuristic assault rifle inside a glowing blue geometric corridor structure.

Halo represents Xbox's biggest missed opportunity. (Image credit: Xbox Game Studios)

In its heyday, Halo was a cultural phenomenon. It turbo-charged the Xbox platform, giving Microsoft's incumbent console a strong basis for growth in a market dominated by Nintendo and PlayStation. Halo 2 and 3 sent the platform even higher, and defined a new era of console-oriented first-person shooters. Those times are well and truly behind it, though.

Through years of mismanagement, Halo is now a shadow of its former self. A disastrous TV show, and two previous games that arguably missed the mark in different ways, Halo Studios' most recent outing (yet another remaster of Halo Combat Evolved) also received mixed reviews from fans and critics for various reasons.

Microsoft announced that it is effectively downsizing Halo Studios into the franchise's production and administration arm, and will place stewardship of the franchise under Activision — confirming some vague industry rumors I'd heard over the summer. Microsoft says around 230 roles will be lost as a result.

We’re thrilled to welcome Halo, Rare, and World’s Edge to Activision. It’s an honor and a responsibility that we do not take lightly.  These teams and their games have inspired fans around the world for decades.For Halo, our goal is clear: make the greatest Halo game ever, worthy of its universe and legacy, while staying true to what made players love it in the first place.  It is a bold ambition, one that this franchise deserves. We have already begun assembling a purpose-built team, unique in capability and talent, ready and excited to deliver this next chapter with the community.To the World’s Edge and Rare teams, we can’t wait to get to work together.

Activision

Exactly which Activision studio will handle Halo going forward remains to be seen, but it's certainly true that Activision's Call of Duty teams have had far more success than Halo Studios has at building broadly appealing live service shooters.

Furthermore, Microsoft is also placing Rare and Sea of Thieves under Activision too, with Obsidian and Grounded moving under ZeniMax to work more closely with Bethesda Softworks on Fallout. World's Edge and the Age of Empires franchise will also move under Activision. Xbox Game Studios will remain as Playground (which is absorbing Turn 10), The Coalition, InXile, and Xbox's publishing arm, handling games like Hideo Kojima's PHYSINT.

A new dawn for Halo?

Halo Infinite

Nobody likes to see job losses, but it was hard to see a path forward for Halo in this current structure. (Image credit: 343 Industries)

The job losses at Xbox have been regrettable over the summer, but it's hard to overlook the fact that in order to have a sustainable business ... games need to actually sell. Whether it's small and quirky projects like Keeper or mismanaged live service ops like Halo Infinite, Microsoft hasn't exactly handled its portfolio effectively in recent years. There's less free time and money for gaming among consumers, and more competition than ever, making the stakes higher than they likely were previously.

Microsoft has seen some big success stories. Minecraft is bigger than ever, as is Forza Horizon, Flight Simulator, Age of Empires, and Blizzard has well and truly thrived in its post-Activision era. Microsoft wants to double down on the bigger opportunities like Fallout and The Elder Scrolls, building TV and movie adaptations for its bigger properties like Diablo and Overwatch.

There's also a corporate structural issue here that Microsoft is looking to address. Moving some of its game teams out from the Microsoft umbrella also moves employees out from under Microsoft's bureaucracy and corporate structure, potentially reducing overheads and costs.

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Halo Studios' proximity to Microsoft HQ, I've heard, has long been a source of corporate inertia and cost bloating — which is absolutely no fault of the employees working there. Those employees and projects also have to deal with A.I. money inflating wages of software engineering-adjacent professions, making some game projects unsustainable purely on the basis of the A.I. bubble. It's a weird economy right now.

As for Halo and other games, it remains to be seen if the restructure will actually lead to higher quality products. Halo fans have been long-suffering, waiting years upon years for a truly consistent delivery schedule for the franchise. I've often wondered myself what an Infinity Ward-led Halo might look like ... perhaps we'll find out exactly what that'll be like in the coming years.

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Hideo Kojima stamps out speculation on Physint while hyping up Xbox

Over the weekend, legendary game designer Hideo Kojima was interviewed by The Washington Post and IGN regarding behind-the-scenes details of one of his studio's upcoming Xbox Series X|S titles, Physint.

The first interview at The Washington Post revealed that Sony tried to cancel Physint during a Zoom call with Hideo Kojima. The man was shockingly surprised at Sony's decision; Hideo Kojima then commented, "I didn’t have any anger or sadness. I was just thinking, ‘What should I do?’ It’s a big problem for us, and I couldn’t tell staff at the time."

Additionally, Kojima took this time to release a statement (which has also been released on Kojima Productions' official X account) regarding speculation people are making about Sony trying to pull the plug on Physint:

Normally, we would not comment on unsubstantiated speculation on the internet, but these aspersions around our relationship with PlayStation, the commercial performance of the DEATH STRANDING franchise, and the broader production planning and investment for PHYSINT, have reached beyond the studio and have touched our fans, our creative partners, and colleagues we have worked alongside with for three decades. None of the claims written came from any official or on-the-record source and as such we encourage you to take them with a dose of scepticism.

Hideo Kojima, The Washington Post, 9/20/2026

He then reassures worried fans that Kojima Productions is in a healthy, profitable state, that development for Physint is progressing with Xbox's backing, and that its relationship with PlayStation remains strong.

In an interview with IGN, he revealed that ever since partnering with Xbox on Physint, Microsoft has given Kojima Productions access to so much new technology and tech support that he jokingly remarked: “There are so many Doc Browns from Back to the Future here!”

He's clearly very excited to get to grips with this new tech, work with Xbox, and figure out what engine he'll decide to use for Physint, something he apparently hasn't chosen yet. Whatever engine Hideo Kojima's new stealth-action game will use, you can be sure we'll report on it as we keep a close eye on Physint's development, as well as Kojima Productions' other upcoming Xbox title, OD, which has survived Xbox's 'big reset'.

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