Updated Today, Jul 2, 2025, 9:11 PM UTC
On July 2nd, Microsoft announced sweeping layoffs affecting as many as 9,000 employees, and they had a big impact on the company’s Xbox studios. Microsoft canceled Perfect Dark from The Initiative and closed the studio. Rare’s Everwild, announced in 2019, was canceled, too. And Forza Motorsport developer Turn 10 Studios will lose more than 70 employees.
“We must make choices now for continued success in future years and a key part of that strategy is the discipline to prioritize the strongest opportunities,” Microsoft Gaming CEO Phil Spencer said in a memo to employees. “We will protect what is thriving and concentrate effort
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