Microsoft’s Lay-Offs Also Affected Xbox Publishing Division, Involved Producers and Leader – Rumour

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According to recent reports, Avalanche Studios has halted work on their cooperative action-adventure game Contraband. However, a new report by Stephen Totilo of Game File suggests that Contraband is just one among many projects at Microsoft that haven’t been publicly disclosed yet. It appears that Microsoft has cancelled several other projects as well, such as Rae’s Everwild and The Initiative’s Perfect Dark. But the new report hints that there are more unannounced cancellations of less-reported projects too.

These projects involve initiatives within Xbox’s development arm, collaborating with external studios to facilitate game launches. Previously, this division collaborated with Interior Night on the game “As Dusk Falls” and with Dontnod on “Tell Me Why”. As reported by Game File, this division has suffered substantial changes, resulting in layoffs of several producers. Moreover, the head of this division, Peter Wyse, has stepped down.

It’s been reported that the layoffs affecting the publishing division were linked to Romero Games announcing the cancellation of their project by an undisclosed publisher. Back in early July, Studio CEO Brenda Romero confirmed this when she revealed that financing for their unannounced project had been terminated. She added that this move was made at a top-tier level within the publishing company, which was beyond the control of Romero Games itself.

Romero shared some tough news: Last night, our game’s funding was canceled by the publisher, along with several other unannounced projects at various studios. This decision was made at a high level within the publisher and unfortunately, it’s beyond our reach or influence. We truly wish there was some way we could have prevented this situation.

To set the record straight, this situation doesn’t in any way undermine the quality of our team’s work, their performance, or the project itself. We consistently meet deadlines, exceed expectations, and receive positive feedback. Our team is exceptional, and we’re proud to be working with the best talent out there.

After some recent speculation, Romero Games clarified that they will not be closing their studio. In a statement, they assured everyone that they are taking all necessary measures to prevent closure. They further emphasized that rumors of the studio’s shutdown are inaccurate and clarified that they were actively working on next steps within the studio today.

Regarding future actions at the studio, it has been confirmed that, due to the cancellation of funding, the management is currently reevaluating possible courses of action. This reassessment also includes a thorough review of the entire team composition at Romero Games.

In a statement, the studio announced that the financial support for our project has been withdrawn, causing us to cancel the game. Unfortunately, due to confidentiality clauses, we can’t reveal the identity of the publisher, although some may speculate based on public information. Consequently, we are now faced with the task of reevaluating our entire team structure at the studio.

From my perspective as a devoted gaming enthusiast, it appears that Microsoft is moving ahead with the release of Kojima Productions’ “OD” and the collaborative efforts between Koei Tecmo and PlatinumGames on “Ninja Gaiden 4”. For the moment, it seems that their flagship title, “Flight Simulator”, remains safe.

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2025-08-08 15:43