Yesterday, as widely expected based on earlier reports, Microsoft began another sweeping round of layoffs – its fourth in just 18 months – this time affecting thousands of people across the company. It’s believed more than 9,000 employees have lost their jobs as a result of this most recent move, which Microsoft told Eurogamer were “necessary to position the company and teams for success in a dynamic marketplace.”
Since the announcement, additional reports have surfaced painting a clearer picture of the devastation wrought by Microsoft’s latest cost cutting measures, as well as the substantial impact on its Xbox division. Beyond the significant human cost of the move – which Xbox boss Phil Spencer insisted was necessary to ensure the “enduring success” of the company in a message to staff yesterday – further details on the specific studios and projects impacted have now begun to emerge.
Rare’s fantasy adventure Everwild, first announced in 2019, has reportedly been cancelled, for instance, leading to the departure of studio veteran Gregg Mayles after 35 years. Microsoft’s troubled Perfect Dark reboot, unveiled in 2020, has reportedly also ceased production and its first party developer, The Initiative, closed. Microsoft is also said to have terminated its partnership with Crystal Dynamics, which was called in to help on the beleaguered project back in 2022, raising questions around how that team may also have been impacted by yesterday’s news.
Elsewhere, an unannounced ZeniMax MMO has reportedly been cancelled, while 200 people are said to have lost their jobs at the Microsoft-owned Candy Crush maker King, and nearly 50 percent of staff at Forza Motorsport developer Turn 10 have reportedly been laid off. The full extent and impact of Microsoft’s massive “organisational and workforce changes” are yet to become clear, with Microsoft only providing limited information to press. It has, however, moved swiftly to deny rumours of Phil Spencer’s imminent retirement, insisting the Xbox boss won’t be retiring from his position “anytime soon”.
With fresh reports continuing to surface around yesterday’s bombshell announcement and its impact on Xbox, we’ve set up this rolling news blog to sift through the confusion, and to collate breaking news and industry reactions as the story continues to evolve.
goggamanxp says: – Warcraft rumble confirmed to not be getting any new content due to layoffs.
– John Romero’s studio lost funding for new shooter from Microsoft cuts
We have fuller write-ups of these nearly ready to go, incidentally. I was never quite sure about Warcraft Rumble but it’s sad to hear about Romero Games. It also sounds like it’s put the small Irish studio in a very difficult position too.
I actually had a dream with Phil Spencer in last night, I assume because I went to sleep thinking about this situation, and in the dream I had to interview him. We got as far as the interview starting and then I don’t remember any more, so I have no breaking dream-news for you.
But I woke up feeling sad about the whole situation. Sad, obviously, for the people losing their jobs. Sad to see decorated developers like Matt Firor, the head of Elder Scrolls Online (and once the co-creator of Dark Age of Camelot, an MMO that means a lot to me) leaving his role after 18 years, after the cancellation of a new MMO he’d been working on. And sad to read about Gregg Mayles reportedly leaving Rare after 35 years there. It’s such a shame. I had thought Rare resurgent in recent years, after the success of Sea of Thieves, and I’d greatly looked forward to Everwild, and now I’m left bewildered and wondering what will become of the studio that’s there. I only hope the people losing their roles are being offered generous severance packages with it.
There was also a feeling of losing belief in Microsoft and Xbox. When Microsoft started buying up studios a few years ago, I watched it all enthused. I was really excited at the prospect of studios like Obsidian Entertainment and inXile finally having the backing of a company with deep pockets and resources. I was excited to see Blizzard wrestled away from Kotick, and curious about where Microsoft would take Bethesda. I thought it was a good thing. But of late it’s seemed to be more precarious being a part of Xbox than not.
Rogueywon says: So this is like the evil twin of those live articles we get for Summer Games Fest and the like? Those are for announcing new games, while this is for announcing cancellations and layoffs? Bleak stuff…
Quite, but a useful way to gather everything together. A glum good afternoon to you all.