In cuts that began on July 2nd and are continuing to roll out in waves, Microsoft have initiated widespread Xbox layoffs. Their layoffs are also impacting Microsoft’s wider gaming division.
So far, multiple game titles, including Call of Duty, Everwild, Forza Motorsport, and Perfect Dark, are reportedly affected.
Upcoming titles get the axe after the Xbox layoff wave
Crucially, several title developments have come to a sudden halt after the sweeping layoffs.
Microsoft Studios’ Matt Booty revealed the following:
“We have made the decision to stop development of Perfect Dark and Everwild as well as wind down several unannounced projects across our portfolio.
As part of this, we are closing one of our studios, The Initiative. These decisions, along with other changes across our teams, reflect a broader effort to adjust priorities and focus resources to set up our teams for greater success within a changing industry landscape. We did not make these choices lightly, as each project and team represent years of effort, imagination, and commitment.”
Perfect Dark was intended to be an action-adventure first-person shooter, published by Xbox. The game would have fit into the Perfect Dark universe with a thriller-style edge. Development was officially announced in 2020.
Everwild had been in development for over ten years.
It was officially announced in 2019, and its trailer launched in 2020. Similar to the recently cancelled title Hytale, a 2021 rebuild had stagnated development. Nevertheless, right up to its cancellation, developers insisted that progress was being made.
After the shocking end to Everwild’s development, Gregg Mayles, Rare’s most experienced game designer, has left the company. He had worked with the game development company since 1990.
The untitled MMO from Zenimax Online Studios, the team responsible for Elder Scrolls Online, has also been scrapped. Codenamed “Project Blackbird,” the game will no longer see the light of day.
Similar to Rare’s Gregg Mayles, Zenimax president Matt Firor has stepped down from the company. He spent over 18 years leading the company.
Layoffs hit Call of Duty, Forza Motorsport development teams
As an Xbox partnered studio, Call of Duty teams have been impacted by Microsoft’s Xbox layoffs.
Raven Software, a development team currently working with Treyarch on Call of Duty’s Upcoming Block Ops 7 game, was also targeted. It is presently unclear how many layoffs were made in this area.
Sledgehammer Games, who also work on Call of Duty titles, has also reportedly been impacted.
Furthermore, the development team for Forza Motorsport, Turn 10, has had 50% of their workforce gutted. The broader impact of this cut on the game’s community is unknown.
Microsoft layoffs also hit mobile games development
Layoffs also mean that the mobile game Warcraft Rumble will not receive any further updates. Cuts impacting the Blizzard section of the Microsoft Gaming business are responsible for the impending demise of the game.
Alongside this, the King mobile gaming division is laying off 10% of their Barcelona workforce. This equates to 200 people losing their jobs in the company.
Industry turmoil – context and reaction to the Xbox layoffs
Rounds of layoffs have repeatedly hit both the games development and esports industries since the pandemic-era investment boom.
Recently, the gaming community faced heartbreak after the cancellation of Hytale and the subsequent closure of Hypixel Studios.
As with many of the game cancellations post-Xbox layoffs, the project was being backed by a major game publisher. Like Microsoft, Riot Games was responsible for pulling the plug on development.
Instability in game preservation and the longevity of game development have also prompted more direct pushback. The organisation Stop Killing Games has spent a year advocating for better legislation protecting game preservation and consumer rights.
Their campaign has received significant traction. While the Xbox layoffs took effect, Stop Killing Games’ petition to the European Commission surpassed 965,000 signatures. The community has not missed the connection between the two.
It will likely take weeks for the full impact of Microsoft’s game development culling to be revealed. Regardless, the immediate cancellations paint a bleak picture.
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