- Xbox has canceled Everwild, Perfect Dark, and an unannounced game from ZeniMax
- Perfect Dark developer, The Initiative, has also been shuttered
- Layoffs have occurred at several studios
Microsoft has once again made significant cuts to its gaming division, as Xbox cancels a handful of games, closes a studio, and performs yet another round of mass layoffs.
As reported by Bloomberg, Xbox has closed down studio The Initiative and subsequently canceled the upcoming Perfect Dark reboot. Rare’s Everwild has also been canceled, as well as an unannounced online title from The Elder Scrolls Online developer Zenimax Online Studios.
Matt Booty, head of Xbox Game Studios, has said in an email to Xbox staff that the cuts “reflect a broader effort to adjust priorities and focus resources to set up our teams for greater success within a changing industry landscape.”
To facilitate these adjustments, Xbox has reportedly laid off staff across a number of its studios. These include ZeniMax, Candy Crush maker King, Call of Duty support studios Raven Software and Sledgehammer Games, Forza Motorsport developer Turn 10 Studios, and Halo Studios which is responsible for the wider Halo franchise.
In total, it seems that a harrowing 9,000 staff members have been affected by the cuts. Back in May 2025, Microsoft also cut an estimated 6,000 to 7,000 employees from its workforce, meaning the company has potentially let around 15,000 staff go in this year alone – a terrifyingly high number.
It’s not the first time Xbox has elected to close entire studios, either. Last year, the company shuttered Arkane Austin, as well as Alpha Dog Games, Roundhouse Games, and perhaps most controversially, Tango Gameworks. Thankfully, the Hi-Fi Rush and The Evil Within developer was able to be rehoused under South Korean publisher Krafton, but not every studio was so lucky.
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