In a significant restructuring of its gaming division, Microsoft has announced the cancellation of two highly anticipated video games, Perfect Dark and Everwild, alongside widespread layoffs affecting approximately 9,000 employees globally.
The cuts represent a reported 4% of the company's total workforce and extend across all departments, including gaming.
As part of these changes, Microsoft has shuttered The Initiative, the studio behind the Perfect Dark reboot. This marks the only studio closure within Microsoft Gaming and Xbox during this round of layoffs.
Perfect Dark, a modern reimagining of the classic Rare game, had been in development for nearly seven years and faced a challenging production, with its first gameplay footage shown only last summer. It was, at one point, being tipped as the first AAAA game (don’t worry, no one knew what it meant), but now it’s unlikely we will see it again.
Rare's fantasy title Everwild has also been cancelled. Although announced in 2019, the game had a troubled development history, reportedly restarting from scratch in 2021 and being in development for approximately 10 years. Rare itself will not be closed.
Xbox Game Studios head Matt Booty stated that these decisions "reflect a broader effort to adjust priorities and focus resources to set up our teams for greater success within a changing industry landscape." Phil Spencer, head of Microsoft Gaming, further explained that the cuts are designed to "end or decrease work in certain areas of the business and follow Microsoft’s lead in removing layers of management to increase agility and effectiveness."
Beyond these two high-profile cancellations, Microsoft has also confirmed the termination of several unannounced projects. While these are the most recent layoffs to impact the video game industry, Microsoft is not alone; competitors like Sony's PlayStation have also undergone significant workforce reductions and studio closures in recent years, with it feeling like there’s a new round of layoffs every week in the games industry.
Despite the cancellations, Xbox currently has over 40 projects in active development, and every game featured at the Xbox Games Showcase presentation in June is reportedly still in development.
You must confirm your public display name before commenting
Please logout and then login again, you will then be prompted to enter your display name.
-
Save on 7 top Christmas events in London with our exclusive voucher codeSeven magical London experiences to make your Christmas sparkle
-
From the actual Grand Budapest Hotel to a topless Bill Murray: The Wes Anderson archive exhibition's best bitsLondon’s Design Museum throws open the doors to Wes Anderson’s wonderfully weird world and personal archive.
-
5 of the most terrifying video game sounds ever, according to Alan Wake's composerFrom screeching violins to mangled robot voices, these tones will terrify you.
-
Next new Xbox console will be "very premium" confirms Microsoft bigwigThe next Xbox might feel quite different
-
Nintendo Store pop-up opens in London: Here’s the 10 things to spend your golden coins onIt’s-a-me, penniless merch hoarder!
-
The Epic Games Store Halloween Sale is here — and these are our favourite dealsSpooky bargains
-
PlayStation Plus unleashes horror heavyweights this OctoberSpooky season is here on PlayStation
-
New Pokemon game leak reveals every planned release for the next 5 yearsFrom Gen 10 to a Pokémon MMO: What the massive ‘Teraleak’ might reveal about the future
-
ROG Xbox Ally X price revealed as handhelds go up for pre-orderEverything's an Xbox
-
Get a first look at OD — Jordan Peele's game collab with Metal Gear legend Hideo KojimaWhere OD meets P.T.
