Xbox Layoffs Lead to Game Cancellations and Studio Closures
Wednesday, 2 July 2025, 20:54

Significant Impact of Xbox Layoffs on Studio Operations
The recent Xbox layoffs are causing shockwaves throughout the gaming industry. Several studios have faced closures and major project cancellations as a direct consequence of Microsoft's decision to reduce its workforce. Notable casualties include:
- The Initiative - Shutdown led to the complete cancellation of the Perfect Dark reboot.
- Rare - Its anticipated title Everwild has been cancelled, amidst key personnel departures.
- Zenimax Online Studios - The upcoming MMORPG Blackbird faced cancellation.
- King - This mobile gaming giant saw a 10% workforce reduction.
- Various Call of Duty studios - Raven Software, Sledgehammer Games, and High Moon Studios impacted by layoffs.
- Halo Studios - Experienced significant job cuts while remaining tight-lipped on future developments.
- Turn 10 Studios - Reported layoffs affecting nearly half its staff.
- Blizzard - Reduced support for Warcraft Rumble, impacting much of the development team.
- Undead Labs - The studio behind State of Decay experiences layoffs, raising concerns about its future.
These layoffs signal severe shifts in the industry, as well as an uncertain future for many beloved franchises.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.