Microsoft Cancels More Xbox Games Amid Layoffs

Microsoft has implemented major layoffs across its Xbox division as part of a broader strategic restructuring, resulting in the cancellation of several high-profile projects and the closure of entire studios. Notably, Rare’s Everwild, The Initiative’s Perfect Dark reboot, and ZeniMax Online Studios’ unannounced MMO codenamed 'Blackbird' were all cancelled despite reportedly promising progress. The layoffs have led to significant job losses at ZeniMax, Rare, and other Microsoft-owned studios, and Romero Games also lost its next project and faced staff reductions. These moves come amid recent Xbox Game Pass price hikes and follow Microsoft's major acquisitions, including Activision Blizzard. While Microsoft still has over 40 games in development, the cancellations and layoffs have raised concerns about the future creative direction of Xbox and the stability of key studios. Industry observers and the gaming community are questioning Xbox’s ability to maintain its reputation for innovation.