Everwild, Perfect Dark and other games that are getting cancelled after latest Microsoft layoffs

Microsoft

has announced substantial layoffs impacting as many as 9,000 employees across its various divisions, also impacting its Xbox division, with numerous studio closures, game cancellations and widespread layoffs. The exact number of affected Xbox employees remains undisclosed. Reports indicate that over 70 staff members at Turn 10 Studios, the developer behind Forza Motorsport, will be let go, affecting the "vast majority" of the studio's personnel.

Major game projects face setbacks

The impact on Xbox's game development ecosystem is severe, with multiple studios and projects reportedly hit:Rare and Everwild: British developer Rare has seen its highly anticipated game, Everwild, canceled, as per Gamespot. Announced in 2019, the project was reportedly in development for a decade and underwent a reboot, but ultimately failed to find the right direction.The Initiative and Perfect Dark: One of Microsoft's newer studios, The Initiative, is reportedly closing, leading to the cancellation of its first game, a new Perfect Dark. Reports from May 2024 had indicated the game was in "rough shape."

A New ZeniMax MMORPG: A new multiplayer online role-playing game (MMORPG) from The Elder Scrolls Online developer ZeniMax Online Studios, reportedly codenamed "Blackbird" and in development since 2018, has also been canceled. Longtime executive Matt Firor is also departing the company, the report said.Romero Games: Funding for a new, unannounced game from Romero Games, headed by John and Brenda Romero, has been canceled by its publisher, believed to be Microsoft. Brenda Romero's social media post indicated a "strategic decision made at a high level within the publisher," with an affected staffer directly attributing their job loss to "the recent Xbox layoffs."

Microsoft job cuts result in widespread layoffs across key game developers

Beyond game cancellations and studio closures, numerous other developers integral to Xbox's portfolio have reportedly faced significant staffing reductions:Turn 10 Studios: The Forza Motorsport developer was reportedly hit hard, with nearly 50% of its staff let go, though the exact number remains unconfirmed.Raven Software: An esteemed Call of Duty co-development studio, responsible for Black Ops 6 (2024) and Black Ops 7 (2025), was affected.High Moon Studios: A long-time Call of Duty co-developer, known for its contributions to Call of Duty: Warzone, has also been impacted.Sledgehammer Games: Another prominent Call of Duty co-developer, Sledgehammer Games, has faced layoffs as part of the wider Microsoft cuts.Blizzard and Warcraft Rumble: Blizzard has announced that support for Warcraft Rumble will cease in its current form, with no new content added. While some employees will shift roles, as many as 100 people are reportedly being laid off.Halo Studios: The development team formerly known as 343 Industries, currently working on multiple upcoming Halo titles, was also affected by the widespread layoffs.