Earlier today, we reported that Microsoft is cutting nearly 9,000 jobs, or 4%, of its workforce from the Xbox division.
This isn’t the first time the company has gone through layoffs this year. Microsoft laid off nearly 7,000 employees across the company this spring, representing approximately 3% of its total staff.
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“I recognize that these changes come at a time when we have more players, games, and gaming hours than ever before,” said Phil Spener, CEO of Microsoft Gaming, in a letter obtained by Windows Central. “Our platform, hardware, and game roadmap have never looked stronger. The success we’re seeing currently is based on tough decisions we’ve made previously. We must make choices now for continued success in future years and a key part of that strategy is the discipline to prioritize the strongest opportunities. We will protect what is thriving and concentrate effort on areas with the greatest potential, while delivering on the expectations the company has for our business. This focused approach means we can deliver exceptional games and experiences for players for generations to come.”
Those tough decisions have led to the cancellation of at least two confirmed Xbox titles, with the possibility of more being affected.
Rare’s Everwild, Unannounced ZeniMax MMORPG Among the Games Cancelled Due To Xbox Layoffs
While Rare is best known today for its work on Sea of Thieves, its legacy is undoubtedly rooted in its past.
Yet for whatever reason, iconic IPs like Banjo-Kazooie and Perfect Dark (more on that later) are either dormant or stuck in development hell. Rare was hoping to grow beyond the Sea of Thieves franchise with Everwild, first announced in 2019. Since that announcement, however, the game reportedly underwent several reboots and never saw the light of day since. There was some optimism that it could launch in 2024, but obviously, that never happened. Today’s layoffs are the final nail in the coffin for the game.
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Round Of Layoffs Hit The Chinese Room Ahead Of Bloodlines 2 Release
Despite a supposed 2025 release date, multiple workers at The Chinese Room behind Bloodlines 2 have just revealed a round of layoffs.
That’s not the only Xbox title cancelled today. ZeniMax Online Studios’ Blackbird, their upcoming MMO project in development since 2018, was also cancelled. ZeniMax, in particular, was hit hard by these layoffs, with employees reportedly having their Slack accounts deactivated as they questioned whether they still had a job.
We also have confirmation of the cancellation of another anticipated Xbox title plagued by development difficulties. First announced at the 2020 Game Awards, Perfect Dark’s reboot was originally developed by The Initiative before Crystal Dynamics stepped in to assist with development. That didn’t stop countless reports of a troubled development cycle, however. Today’s layoffs may be the end of the Perfect Dark franchise.
Forza Motorsport developer Turn 10 has also laid off 50% of its staff, leaving the future of the Forza Motorsport franchise in doubt.
One game that does appear to be safe, for now, is State of Decay 3, with Windows Central’s Jez Corden saying he believes the game is safe. Having said that, developer Undead Labs is reportedly also going through layoffs.
