Microsoft has announced a massive round of layoffs, cutting about 9,000 employees—around 4% of its global workforce. For many in the gaming industry, this news feels like a heavy blow.
Beloved Studios and Games Shut Down
The latest wave of Microsoft layoffs is hitting Xbox teams particularly hard, with major cancellations and studio closures shaking the gaming division. Among the casualties is Perfect Dark, the long-awaited reboot of the iconic FPS. The Initiative—the studio leading the project since 2018—will reportedly shut down, leaving developers disheartened after years of work meant to redefine Xbox’s storytelling legacy.
Rare’s Everwild, an ambitious fantasy title in development for over a decade, has also been canceled. For the team behind Sea of Thieves, the project’s abrupt end is both shocking and deeply emotional. Meanwhile, ZeniMax Online Studios, best known for Elder Scrolls Online, is laying off key staff. Their next-gen MMORPG, codenamed Blackbird, will no longer move forward.
These Microsoft job cuts underscore the broader restructuring within the company’s gaming division—raising tough questions about its long-term creative strategy and commitment to original IP.
More Studios Face Deep Cuts
The damage doesn’t stop there.
Halo Studios lost at least five employees. Their team is working on the next big Halo game, and the cuts bring fresh uncertainty.
Turn 10 Studios, famous for Forza Horizon, has reportedly laid off over 70 people.
King, the Stockholm studio behind Candy Crush, is cutting 10% of its staff. About 200 people are losing their jobs.
Raven Software, which made hits like Call of Duty: Black Ops Cold War and Singularity, has also been impacted.
A Loss That Goes Beyond Business
For the people affected, this is about more than just losing a job. Many were working on games they believed in. Some spent years building worlds that will never see the light of day.
Microsoft says the layoffs are part of restructuring in a challenging economy. But for developers and fans, this feels like a painful reminder that even in an industry built on imagination, nothing is secure.
As these teams close projects and say goodbye to colleagues, the gaming world is left mourning the end of so many dreams.
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