Gears of War: E-Day Devs Reportedly Worried About Losing Bonuses

Developers at The Coalition are reportedly concerned that recent layoffs and Xbox’s restructuring could affect their eligibility for performance-based bonuses tied to Gears of War: E-Day.

Developers at The Coalition are reportedly worried that recent Xbox layoffs will affect their chances of receiving performance-based bonuses tied to War: E-Day's release. These concerns have surfaced just days before the much-anticipated prequel's release, leaving developers who spent years on the project feeling uncertain. According to Eurogamer, some Coal employees worry their bonuses are tied to the game's critical performance if they are laid off just before or after E-Day launches.

These worries come as Microsoft makes more cuts in its gaming division. Microsoft has not officially named The Coalition in its latest restructuring announcement. Still, Eurogamer reports that several sources say the studio has quietly let developers go in recent weeks. The issue drew more attention when Gears of War: E-Day story director Juan Vaca announced he had been laid off.

His exit happened just days after E-Day went gold and less than two weeks before its October 6 release. For The Coalition, the timing matters because E-Day is one of the studio's biggest projects in years. The game is a prequel set 14 years before the original Gears of War, following a younger Marcus Fenix and Dominic Santiago at the start of the Locust invasion.

The team built it from scratch in Unreal Engine 5, creating new characters, enemies, weapons, animations, sound, and environments instead of reusing assets from earlier Gears games. Day had gone gold on September 17, marking the completion of the development milestone ahead of its October 1 early-access period and October 6 full release. Studio head Mike Crump described reaching gold as an important milestone for the team after its work on the project.

According to Eurogamer’s sources, however, concerns about job security and pay have overshadowed this positive milestone within the studio. publication says that some developers feared Microsoft could attempt to avoid paying Metacritic-based bonuses to employees who were laid off shortly before or immediately after the game’s release. The report does not establish that Microsoft plans to withhold these bonuses.

Instead, it describes employees' concerns about what could happen if layoffs occurred around the time those bonuses became payable.

One source said employees dismissed shortly before the payout might still technically qualify for the bonus, but the uncertainty has made some staff skeptical. These concerns come as Xbox is undergoing major changes. Microsoft has been restructuring its gaming division, cutting staff, and rethinking its development plans. These changes have affected many studios and projects, adding to the uncertainty across Xbox.

For The Coalition, the timing is especially tough because E-Day is about to reach players after years of work. The project was first announced at the 2024 Xbox Games Showcase, where The Coalition surprised fans by going back to the franchise's origins instead of making another sequel. This choice let the studio explore Emergence Day, the key event that shaped the Gears of War universe.

The Coalition has also described E-Day as a major technologic The Coalition has called E-Day a major technological reset for the studio. The team switched to Unreal Engine 5 and rebuilt everything from scratch, including characters, enemies, weapons, animation, sound, and environments. The goal is to make this the most technically advanced Gears game yet, using modern rendering and advanced lighting for today’s hardware: Xbox and PC.

E-Day is available on Xbox Series X|S and PC, including Steam and the Xbox PC platform, and can be played through Game Pass. The game is also set up as a technical showcase on PC, supporting features like NVIDIA DLSS 4.5, AMD FSR, Intel XeSS, Unreal Engine TSR, and hardware ray tracing. Even with the game’s release coming soon, the reported layoffs have raised questions about what the launch will be like for the studio’s staff.

Sources reportedly described the situation as particularly demoralizing because developers who had worked on E-Day for years could potentially lose their jobs just as the project reaches audiences.

One source described Vaca's departure as especially difficult because he remained involved through the project's final development period. The report also says developers worked especially hard during the last stages of production.  According to the publication, their extra effort was rewarded with additional vacation time, though the amount varied between employees.

These concerns go beyond just bonuses. They show the uncertainty developers face when big projects finish during times of corporate restructuring. Performance bonuses are usually tied to things like reviews, sales, or other project goals. In this case, Eurogamer's sources described bonuses tied to E-Day’s Metacritic score. However, Microsoft and The Coalition have not shared the exact terms of these bonus agreements.

Xbox did not comment on these claims when Eurogamer asked. So, the reported concerns should not be taken as proof that Microsoft plans to deny bonuses to laid-off employees. For now, E-Day is still set to launch on October 6, with Premium Edition owners getting up to five days of early access starting October 1. The Coalition has confirmed the game has gone gold and is getting ready for its worldwide release.

Xbox has given the game a lot of attention, calling it a major return to the franchise’s roots. The Coalition has focused on the relationship between Marcus and Dom, the horror of Emergence Day, and updating Gears’ technical foundation for modern hardware. However, the concerns inside the studio show that even finishing the game doesn’t guarantee the team can celebrate without worry.

With E-Day finished and launch just days away, developers who spent years on the game are preparing to see their work reach players, though some still feel unsure about their jobs and pay. The exact timing of the layoffs remains unknown. What is clear is that the layoffs' timing has created an uncomfortable situation around one of Xbox's most important upcoming releases.

Gears of War: E-Day is set to launch on October 6 for Xbox Series X|S and PC, and will also be available through Game Pass. For The Coalition, this release follows a major technological and creative reset for the franchise. Still, recent reports suggest some developers may face more uncertainty about their future than they expected as launch week approaches.