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The Stunning List Of Cancelled Xbox Projects, From ‘Perfect Dark’ To ‘Everwild’

  • Microsoft announced on July 2 that it laid off approximately 9,000 employees, impacting its Xbox division and related gaming studios worldwide.
  • The layoffs followed a period of organizational restructuring intended to position Microsoft for success amid a dynamic marketplace and came after previous cuts in the last 18 months.
  • The Initiative studio was fully shuttered, cancelling the Perfect Dark reboot, while Rare's decade-long Everwild project and Zenimax Online's MMORPG Blackbird were also terminated, alongside layoffs at Halo Studios, King, Raven Software, and Romero Games.
  • Matt Booty, who leads Xbox Game Studios, announced that the company has ceased work on Perfect Dark and Everwild, in addition to scaling back multiple other undisclosed projects, impacting at least three games and several development teams.
  • These layoffs suggest a significant downsizing and reconfiguration of Microsoft's games business with uncertain impacts on future Xbox strategies, despite Xbox reporting ongoing expansion and profitability during this period.
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Neowin broke the news in on Wednesday, July 2, 2025.
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