Xbox Layoffs Impact Multiple Studios, Cancel Several Games

Microsoft has announced extensive layoffs impacting up to 9,000 employees, with significant effects on Xbox studios including the closure of The Initiative and cancellation of Perfect Dark, as well as the cancellation of Rare's Everwild. Key veterans such as Zenimax Online Studios president Matt Frior and Rare's Gregg Mayles and Louise O'Connor are departing, coinciding with project cancellations and studio restructurings. Major studios like Turn 10 are losing substantial staff, and multiple Call of Duty development teams including Raven Software, Sledgehammer Games, and High Moon Studios have also been affected. Despite these cuts, Microsoft Gaming CEO Phil Spencer emphasized a strategic focus on prioritizing the strongest opportunities for long-term success and confirmed he is not retiring soon. The layoffs come amid ongoing integration following Microsoft's acquisition of Activision Blizzard, though the upcoming Call of Duty: Black Ops 7 remains on track for release. Microsoft has yet to provide further comments on the layoffs, cancellations, or studio closures.