After initial rumors claimed that Xbox would be hit by major layoffs, it seems the claims have come to fruition. Over 9,000 employees at Microsoft have been laid off, including the gaming division. Developer The Initiative has been entirely shuttered, along with their project, which was a new entry into the Perfect Dark series. Rare was impacted too, with Gregg Mayles, who directed Banjo-Kazooie, leaving the company, and Rare's latest game, Everwilds, being canceled. Zenimax's upcoming MMORPG codenamed "Blackbird" which began development in 2018, has also been canned. Bloomberg has reported that Forza Motorsport's developer, Turn 10, has lost almost half of its team as well.

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.

Our overall portfolio strategy is unchanged: build games that excite our players, continue to grow our biggest franchises, and create new stories, worlds, and characters. We have more than 40 projects in active development, continued momentum on titles shipping this fall, and a strong slate headed into 2026.

For those directly affected, we are working closely with HR and studio leadership to provide support, including severance, career transition assistance, and where possible, opportunities to explore roles on other teams.

To everyone across our studios: thank you. Your creativity and resilience continue to define who we are. I believe in the strength of our teams and the direction we’re taking on the path ahead.

Source

 

[PatrickD85]

And thats why they are called M$.

 

[liquidgykill]

Im gonna be blunt but that Perfect Dark trailer looked like shit.
Said that, this is not good, Microsoft overpaid for Activision Blizzard and Bethesda. Xbox One hasnt get a decent first party game in almost a decade at this point. Yet they keep bying IPs just to give them the EA treatment.
Xbox is dying. They will became a publisher like Sega.

 

[bonkmaykr]

Microsoft.

Microsoft never changes.

 

[Marc_LFD]

I still want this game so badly:

 

[bjaxx87]

I'm a little embarassed to admit that the prospect of a new Perfect Dark was the main reason for me to buy a Series X 3 years ago.

 

[Andy2001]

Bruh, was looking forward to play perfect dark.

Post automatically merged: Jul 3, 2025

Bruh, was looking forward to play perfect dark.

 

[raxadian]

Not even Gameranx has any clue what the fudge is Microsoft doing.

 

[KingVamp]

Poor Rare. Microsoft really doesn't need to buy anything else, if this is the result.

 

[raxadian]

Poor Rare. Microsoft really doesn't need to buy anything else, if this is the result.

Microsoft only seems to do okay when it comes to PC first games and even then that's only in a few cases.

 

[AxlSt00pid]

It is the only game I've bought on my Xbox in the past 5 years lol.

IT's the only game that made me buy an xbox, the Xbox One is the only Microsoft console I own

 

[Purple_Shyguy]

9000 layoffs.
Microsoft applied for 5000 HB1 visas.

It's clear as day to anyone they just want to import cheap labor from India and pay super low wages. Outsource work to cheaper labor overseas. It's a disgrace.

 

[Moe87]

9000 layoffs.
Microsoft applied for 5000 HB1 visas.

It's clear as day to anyone they just want to import cheap labor from India and pay super low wages. Outsource work to cheaper labor overseas. It's a disgrace.

and Microsoft want to replace with AI too.

 

[The Real Jdbye]

Here's hoping Gregg Mayles gets snatched up by Playtonic so at least some good will come from this.

 

[balemoc]

Gaming industry: we refuse to pay devs to give the public good games.

Yeah, I wonder what that thing that happens with corporations.
There's a threshold where one gets too big, too many voices to adhere to, and the talent and creative groups - the actual content producers - get sideswiped to the gutter.

Pixar-Disney just had their worst release week with Elio, imo, because the actual art direction is trash.
Too many 'keep it safe' voices having the last say, and it ends up looking like everything else presented by an ad-agency.

 

[DuoForce]

Playstation does nothing. Somehow wins. These companies never should've sold out to microsoft

 

[MohammedQ8]

 

[Purple_Shyguy]

Playstation does nothing. Somehow wins. These companies never should've sold out to microsoft

Concord cost $300,000,000 bro. Flopped. Studio shut down.
Last of Us Online. Cancelled.
Marathon. Cancelled.
Fairgame$. Dead on arrival.

They're not doing so hot themselves

 

[Viri]

At least Xbox players will finally be able to play Helldivers 2!

Post automatically merged: Jul 4, 2025

Im gonna be blunt but that Perfect Dark trailer looked like shit.

It really did. lol

Post automatically merged: Jul 4, 2025

Imagine getting canned, and then reading your former higher up posting this shit.

Spoiler

 

[Searinox]

I really don't like this "hit by layoffs" formulation that keeps getting used. As if they got hit by a tornado or something. SOMEONE decided to lay off people, likely not for the benefit of consumers or remaining workforce, and very likely when that money could have been saved by cutting a CEO's salary down a few tens of millions of dollars, or telling shareholders to be patient on gains. All this horrible stuff is lost when the wording makes it sound like it came from somewhere unknown and just happened.

 

[AkiraKurusu]

Might as well rename this division - to Exbox.