All cancelled games & studio closures from Xbox’s massive layoffs

The recent announcement that Microsoft is letting go of approximately 9,000 more employees at Xbox has caused significant repercussions. This has led to the cancellation of several games and even the closure of certain studios, offering a glimpse into the extent of the aftermath, as far as we can tell.

Earlier in the week, there were rumors about it, but on July 2, Xbox officially announced its latest round of job cuts affecting around 9,000 employees. This follows the elimination of over 12,500 roles during 2023-2024, making a total of more than 20,000 layoffs since Microsoft revealed its plans to purchase Activision Blizzard King for approximately $68.7 billion.

How extensive are these recent job cuts? They’ve led to the scrapping of eagerly awaited games and even the shutdown of entire studios, resulting in a substantial effect.

Below is a comprehensive look at everything directly affected by Xbox’s latest round of layoffs.

Perfect Dark reboot cancelled & The Initiative shuttered

Initially released on the Nintendo 64 in the year 2000, Perfect Dark has since earned a reputation as one of the most restricted gaming series in contemporary times.

Originally established in 2018, Microsoft created a fresh studio known as The Initiative, primarily dedicated to reviving the classic series, Perfect Dark. However, for the subsequent seven years, this studio did not launch any games and is now closed down.

As a dedicated gamer, I’ve been on a rollercoaster ride of anticipation over the years, witnessing numerous versions of the Perfect Dark reboot. But it wasn’t until the 2024 Xbox Games Showcase that The Initiative seemed to have struck the right beat. The trailer was nothing short of electrifying, showcasing pulse-pounding action and futuristic combat that had us tech-loving fans buzzing with excitement.

Although the relaunch displayed potential, it ultimately failed to materialize. With the shutdown of the project scheduled for July 2, 2025, any further work on a fresh Perfect Dark has stopped. Recently, whispers have surfaced suggesting that the 2024 demonstration was not genuine, with some claiming it wasn’t actual gameplay. However, treat these allegations with skepticism.

Everwild cancelled

Back in 2014, I was thrilled about Everwild, a game that promised something fresh from the creative minds at Rare, known for their work on classic franchises like Banjo-Kazooie and more recently, Sea of Thieves.

During Xbox’s 2019 presentation, the game was initially unveiled, but subsequently, there was no more news about it. Although numerous rumors surfaced suggesting a remake of the game within the company, there were no further official disclosures.

Although Phil Spencer himself had expressed great enthusiasm for Everwild, this anticipated Xbox first-party title was unfortunately canceled following the layoffs that occurred in July 2025.

It’s possible that we might not be able to definitively determine all the events that took place during the 11-year period of this game’s creation and supposed updates.

Sea of Thieves & Banjo-Kazooie director leaves

In the midst of recent job cuts, it was announced that Gregg Mayles, an experienced game designer known for his work on Sea of Thieves and Banjo-Kazooie (among other games), is departing the company due to a decision made by Xbox.

It’s reported that Mayles, who had been with the studio for more than three decades and served as the director of Everwild (a game that has since been cancelled), is leaving the studio following its cancellation. Since the rumored reboot of the game in 2021, Mayles had been credited as the director.

New ZeniMax Online MMO shut down

In line with the announcement about job cuts, Matt Booty, the head of Xbox Game Studios, verified the cancellation of the aforementioned games and also mentioned the termination of several unspecified projects that were yet to be announced.

According to a report by Windows Central, it’s known that they were secretly working on a Massively Multiplayer Online (MMO) game, with ZeniMax Online Studios being the developers behind titles like The Elder Scrolls Online and Fallout 76.

As a diehard fan, I can’t help but be intrigued by the enigma that is Project Blackbird. While it seems to fit neatly into the category of RPG-focused MMOs I adore, the specifics have been shrouded in mystery, keeping me on the edge of my seat with anticipation.

Not long after the announcement about this specific game, it was revealed that Matt Firor, head of ZeniMax Studios, had decided to part ways with the company.

Warcraft Rumble on last legs

The development of fresh content for the free-to-play version of the 2023 mobile game Warcraft Rumble has halted as announced by Blizzard. Although they will maintain support through routine, ongoing in-game events and bug fixes, no new content is expected to be introduced from now on. This announcement coincided with the news about Xbox’s layoffs on the same day.

Following the announcement, it was reported that certain affected employees may move into different positions within the Blizzard group, while others might face termination altogether. The potential impact is estimated to affect around 100 employees.

Uncertainty of remaining layoffs

We’ve discussed how layoffs have affected various teams by cancelling their games, but we haven’t talked about how it has affected those who were spared from these cuts.

According to a report by The Verge, Turn 10 Studios, the developers behind Forza Motorsport, are set to lose over 70 employees due to layoffs. This reduction almost brings the team down to half its current size, as indicated by a headcount on LinkedIn.

According to CharlieIntel’s sources, several teams working on Call of Duty games, such as Sledgehammer Games, Raven Software, and High Moon Studios, have allegedly been affected. Additionally, rumors suggest potential layoffs at Halo Studios and Undead Labs, the developers of State of Decay, though these reports remain unverified.

Ever since the announcement, Engadget has covered the effects on the remaining staff at Halo Studios. A source within the studio expressed that there’s been significant tension among the team.

Based on the same reference, it’s claimed that Microsoft is making a significant effort to replace as many positions as possible with artificial intelligence agents.

2025-07-03 07:48