Over the course of the last seven days, I’ve witnessed a significant downsizing at Microsoft, impacting approximately 9,000 employees. Among these, several hundred were part of their Xbox gaming division.
In line with cost-cutting measures that are believed to support Microsoft’s planned $80 billion investment in artificial intelligence infrastructure, certain future Xbox game development projects have been canceled or scaled back.
The Initiative project came to an end, resulting in the shelving of Perfect Dark. Similarly, Everwild at Rare was scrapped, causing a wave of layoffs among seasoned designers. Regrettably, ZeniMax Online Studios’ upcoming MMORPG also met its demise, despite Xbox CEO Phil Spencer’s reported fondness for the game.
Several second-party game projects were also terminated. These are games created by external teams yet financed and distributed by Xbox. It was disclosed that Romero Games’ forthcoming shooter was backed by Xbox, and its cancellation essentially brought an end to the entire studio. The status of other games remains uncertain, as some have been announced but have since vanished without a trace for quite some time in certain instances. However, I can verify that at least one of these projects is still ongoing, for the time being.
Approximately two years ago, the renowned creator behind Death Stranding and Metal Gear Solid, Hideo Kojima, unveiled a chilling game titled OD, which continues to be enveloped in an air of intrigue.
Some people are discussing online that the game might have experienced budget reductions too, but based on our information, it doesn’t seem so at the moment. For the time being, anyway.
According to Microsoft’s public statements about games like Everwild, which they mentioned was progressing well and would receive adequate time for development, it appears that CEO Satya Nadella is willing to postpone or even abandon projects with significant potential in favor of artificial intelligence and other emerging technologies that catch Microsoft’s interest.
I’m currently looking into the current status of other Xbox game projects, such as Contraband, which appears to have gone missing for quite some time now. It is believed that Contraband is being developed at Avalanche Studios (originally known as Typhoon). The game is said to be a heist-themed title with a focus on Avalanche’s renowned vehicle combat mechanics. However, the trailer for Contraband has been removed from Xbox’s YouTube channel, which could indicate potential troubles. It has been speculated that this could be due to an expired music license, but only time will tell for certain.
In the wake of recent job cuts, it’s evident that we might witness more announcements regarding scrapped projects and diminished responsibilities. The brutal downsizing Microsoft executed within its gaming division last week is bound to leave a lasting impact. The testimonies I’ve gathered from those who were unexpectedly hit by the ruthlessness of these layoffs have been nothing less than heart-wrenching.
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2025-07-04 05:39