Microsoft’s sweeping job cuts are continuing to ripple across its Xbox division, with new reports confirming that more prominent studios have been significantly affected. Raven Software, Turn 10 Studios, Rare, King, and ZeniMax Online Studios are all reportedly facing layoffs as part of Microsoft’s global plan to reduce its workforce by 4%.
Nearly Half of Turn 10 Reportedly Laid Off
According to Bloomberg’s Jason Schreier, the cuts at Forza Motorsport developer Turn 10 are particularly deep, impacting “nearly 50%” of the studio’s workforce. This comes less than a year after the studio released the latest Forza Motorsport title in 2023. Meanwhile, Raven Software—key to the development of Call of Duty: Warzone and the upcoming Black Ops 7—is also among the teams facing layoffs.
The internal restructuring is part of a broader attempt by Microsoft to refocus its gaming operations amid mounting competition and shifting industry dynamics.
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Major Game Cancellations: Everwild, Perfect Dark, and More
In addition to the layoffs, Microsoft has canceled several high-profile projects. Rare’s long-in-development title Everwild, as well as the reboot of Perfect Dark from The Initiative, have both been scrapped. The Initiative will reportedly shut down entirely. An unannounced MMORPG from ZeniMax Online Studios has also been canceled, alongside several other undisclosed projects.
Xbox Game Studios head Matt Booty acknowledged the cancellations in a memo, saying they were necessary to “adjust priorities and focus resources” in a changing market.
Xbox Still Has Over 40 Games in Development
Despite the shake-up, Microsoft says it remains committed to its long-term gaming vision. Xbox CEO Phil Spencer emphasized that the changes are intended to secure a “healthier future” for Xbox. Booty added that over 40 games are still in active development, with a strong slate planned through 2026.
These latest layoffs follow Microsoft’s previous rounds of cuts, including 1,900 layoffs after acquiring Activision Blizzard, and the May 2024 closure of four ZeniMax studios: Arkane Austin, Tango Gameworks, Alpha Dog Games, and Roundhouse Games.
As the industry shifts, Microsoft is betting on a leaner, more focused approach to deliver future blockbuster titles.
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