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

GLOBAL, JUL 2 – Microsoft cancels major Xbox titles and closes studios amid global layoffs as it shifts focus to AI, cloud, and productivity despite record gaming engagement and $26 billion quarterly net income.

  • On Wednesday, Microsoft laid off approximately 9,000 employees globally, including shutting down the studio behind Perfect Dark and canceling titles like Everwild and Perfect Dark.
  • Following mass layoffs, Microsoft shifts focus to AI and cloud growth, reducing management layers for agility, as Spencer emphasizes strategic realignment.
  • Microsoft's Xbox division canceled the unannounced Blackbird MMORPG from ZeniMax Online Studios, shut down The Initiative, and scrapped Rare's Everwild, following strategic shifts toward AI and cloud focus.
  • Microsoft's Xbox division layoffs left unionized staff in limbo, with employees waiting hours for job updates and HR offering severance and support, highlighting employee hardship amid project cancellations.
  • Beyond the layoffs, Microsoft encourages internal redeployment, but uncertainties linger over whether the strategic shift will enhance or harm Xbox's future creativity and focus.
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Neowin broke the news in on Wednesday, July 2, 2025.
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