Microsoft Gaming studios head Matt Booty says “overall portfolio strategy is unchanged” — with more than 40 games in production

In light of shifting industry trends, we are making some tough decisions. This includes discontinuing the development of Perfect Dark and Everwild, wrapping up several unannounced projects, and ultimately shutting down The Initiative studio. These moves, along with other changes within our teams, aim to realign priorities and maximize resources for future success. Please understand that every project and team involved has been a result of dedicated years of work, creativity, and dedication.

No, Microsoft and Xbox’s Phil Spencer isn’t stepping down any time soon — here’s the truth

It can’t be made any better: this is a disappointing day for Xbox fans, as these layoffs come at a time when the game industry has been cutting back harshly for years. This news dampens the enthusiasm generated by Microsoft’s gaming brand, which had recently gained momentum from the Xbox Games Showcase and the announcement of the Xbox Ally handheld devices.

Microsoft is closing down Xbox studio The Initiative, with Perfect Dark killed as well — joining Everwild and ZeniMax’s IP, and other unannounced projects

As an analyst, I’m reporting that Microsoft has announced a significant round of layoffs impacting approximately 4% of its global workforce across all divisions. Regrettably, the Xbox division appears to be bearing a substantial brunt of these cuts, with employees from various departments receiving termination notices today. Among those affected is the Xbox studio The Initiative, which unfortunately is being shut down.

Xbox is cancelling Rare’s ‘Everwild’ as part of broader cuts — and possibly even more

Although there’s been much speculation about potential cuts in Microsoft’s hardware division, it appears that the upcoming Xbox hardware line, including a possible successor to the Xbox Series X with potential Steam compatibility, has remained largely untouched by these changes. This recent round of layoffs doesn’t seem to have affected their next-gen Xbox hardware plans.

Microsoft continues Xbox layoffs — jobs cut at King and ZeniMax Media

According to reports from Windows Central, there have been reductions in ZeniMax Media’s marketing staff in both London, UK and Rockville, MD, USA. However, the extent of these cuts is currently unknown. Additionally, it’s expected that layoffs may occur within certain U.S. teams associated with Xbox, with further information to be revealed soon.