Words fail me.
This week has been a real downer for Xbox enthusiasts like myself. The recent wave of Microsoft layoffs has hit the gaming division particularly hard, leading to closures of studios and cancellations of numerous games. It’s heartbreaking to see so many gifted developers losing their jobs, with some reports suggesting that this is partly due to Microsoft’s focus on AI technology.
As things start to become clearer, let’s delve into the changes made and speculate on how they might shape the Xbox gaming library in the time to come.
Initially, I had intended to share our favorite games of 2025 (up until now) with you this weekend, but since Microsoft called off their plans as well, you can credit them for scuppering that too.
Despite not having a complete record of all the events, I’ve collected all the facts that have undeniably been affected: cut or otherwise.
- The Initiative is shuttered, Perfect Dark is canceled (around 50 jobs)
- 50% of Turn 10 Studios (at least 70 jobs)
- 50% of Xbox User Research team
- 10% of Candy Crush developer King (around 200 jobs)
- A small number at Halo Studios (less than 10 jobs)
- An unknown number at Rare, Everwild canceled
- An unknown number at Activision studios, including Sledgehammer Games and Raven Software
- An unknown number at Bethesda Softworks, Romero Games’ project canceled with the studio facing closure (around 100 jobs, but not under Microsoft)
- An unknown number at Blizzard Entertainment, Warcraft Rumble updates ceasing
- An unknown number at Undead Labs
- An unknown number at Xbox Communications
- An unknown number at Xbox Game Studios Global Publishing
- An unknown number at ZeniMax Online Studios, Project Blackbird canceled
- An unknown number at ZeniMax Media Quality Assurance
As a researcher, I can’t help but express my astonishment at the sheer volume of gaming projects in the pipeline at Xbox. According to Matt Booty, President of Game Content and Studios, there are over forty projects currently under development. This wave of games is set to break later this year and will persist well into 2026, extending even into the first half of 2027. The scale of this endeavor is truly unprecedented in the gaming industry.
2025’s second half will feature the release of Obsidian Entertainment’s Grounded 2 and The Outer Worlds 2, scheduled for July and October. Additionally, expect Tony Hawk’s Pro Skater 3 + 4 and Gears of War: Reloaded to debut in July and August respectively.
The publishing team at Xbox Game Studios is collaborating with PlatinumGames and TeamNinja to release Ninja Gaiden 4 in October. On the other hand, Double Fine’s Keeper is expected to debut in October as well. Lastly, Call of Duty: Black Ops 7 will presumably come out towards the end of the year, around November.
In 2026, The Coalition plans to debut Gears of War: E-Day. Meanwhile, Playground Games has a two-part show lined up, with Fable and the yet-to-be-revealed Forza Horizon 6 on the schedule.
There’s a lot of chatter suggesting that Halo Studios might be working on something, possibly a reboot of Halo: Combat Evolved. Additionally, it wouldn’t surprise me at all if inXile Entertainment’s Clockwork Revolution was set for release by 2026.
During the latest Xbox Games Showcase, Microsoft Gaming CEO Phil Spencer announced enthusiastically that players will have the opportunity to mark 25 years of Xbox by enjoying a new Fable, the next Forza, Gears of War: E-Day, and the reemergence of an old favorite from the start.
As we approach the year 2027, it’s clear that exciting titles such as Marvel’s Blade (from Arkane Lyon), OD (from Kojima Productions), and State of Decay 3 (from Undead Labs) will be released. However, one can’t help but wonder: What lies beyond these releases?
It seems that every game I had in mind for the schedule between late 2027 and early 2028 has disappeared. The Initiative’s Perfect Dark, Rare’s Everwild, and ZeniMax Online Studios’ Project Blackbird were potential contenders to fill this void.
Previously, it’s tough not to speculate that Hi-Fi Rush 2 by Tango Gameworks and another Dishonored game from Arkane Austin could have been included here instead.
It’s likely that we’ll find a solution, but the numerous cancellations are bound to leave their mark, and we must face the consequences.
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2025-07-05 14:39