Perfect Dark, Everwild, and other titles cancelled amidst Microsoft layoffs. Read on to learn more about the titles that were shut down and Xbox’s reasoning for the massive layoffs.
Microsoft Layoffs Cancelled Games and Closed Studio
Rare Director Leaves Studio Amidst Everwild Cancellation
Microsoft announced on July 2 that the company will lay off around 9,000 employees, which includes the cancellation of games, including Rare’s latest IP, Everwild. According to Windows Central on July 2, Xbox Game Studios Head Matt Booty sent out an internal email to their staff to inform them about the situation.
"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," Booty said in the email.
Following Everwild’s cancellation, developer Rare’s veteran game designer, Gregg Mayles, will leave the company after 35 years of service. He was part of several well-known games from the studio, including Banjo-Kazooie, Sea of Thieves, and Donkey Kong Country, just to name a few. Alongside him, Executive Producer Louise O’Connor will also depart from the company.
Mayles has been working on Everwild since the team was restructured in 2021. The game was in development for almost a decade and was first announced in November 2019. News updates regarding its development were scarce since the trailer back in July 2020. However, in February 2025, Xbox CEO Phil Spencer spoke on Everwild’s progress and stated that it was making steady progress.
Unfortunately, Everwild is included in Xbox’s list of game cancellations despite the long development time Rare has put on the project. "We did not make these choices lightly, as each project and team represent years of effort, imagination, and commitment," Booty stated.
Perfect Dark Cancelled as Studio The Initiative Shuts Down
Another title that has been cancelled amidst Xbox’s layoffs is the highly anticipated futuristic eco sci-fi shooter, Perfect Dark. The reboot of Rare’s stealth shooter was handled by the newly established team, The Initiative, back in 2018.
Perfect Dark was first announced in 2020, while its gameplay reveal was unveiled during the Xbox Games Showcase in 2024. Since then, the studio has been silent regarding the game despite fans taking interest in the revival project.
Job Cuts Across Microsoft Gaming
Beyond the cancellation of Perfect Dark and Everwild, and the closure of The Initiative, Xbox’s layoffs were felt across Microsoft Gaming. In a report by Bloomberg’s Jason Schreier on July 2, many studios and developers were notified of these massive cuts, including the Elder Scrolls Online developer ZeniMax Online Studios.
ZeniMax’s supposed new online game was discontinued, and it will cut 10% of its staff. Insider reports also indicate that Call of Duty studios Raven Software, Sledgehammer Games, and Halo Studios and Forza Motorsport developer Turn 10 Studios will also experience a cutback on their teams.
Spencer spoke about these layoffs on an email to their staff, and stated, "To position Gaming for enduring success and allow us to focus on strategic growth areas, we will 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."
Although he mentioned that Xbox’s "platform, hardware, and game roadmap have never looked stronger," the company must continue to "make choices now for continued success in future years and a key part of that strategy is the discipline to prioritize the strongest opportunities."
This is the fourth run of layoffs Xbox has made in the past 18 months, considering the gaming division is currently under pressure to deliver more profits to the company, as they have recently acquired Activision in a massive $69 billion deal in October 2023.
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Microsoft is closing down Xbox studio The Initiative, with Perfect Dark killed as well — joining Everwild and ZeniMax's new IP, and other unannounced projects
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Microsoft Makes Deep Job Cuts Across Xbox Division, Cancels Games
