Microsoft's sweeping layoffs have cast uncertainty over numerous Xbox-exclusive projects currently in development. Among the casualties are Rare's fantasy adventure Everwild, an unannounced MMO from ZeniMax Online Studios, and The Initiative's Perfect Dark reboot – with the latter's development studio being completely shuttered.
The Ripple Effect Across Microsoft Studios
The impact extends beyond Microsoft's internal teams. External studios working under Xbox publishing deals haven't been spared either. Romero Games, founded by industry veterans John and Brenda Romero, reportedly suffered substantial staff reductions, jeopardizing their upcoming shooter project.
Xbox Game Studios head Matt Booty attempted to reassure employees in an internal memo obtained by IGN, stating Microsoft maintains "more than 40 projects in active development" with titles planned through 2026. A separate Variety report confirmed all games featured at June's Xbox Games Showcase remain unaffected.
Confirmed Survivors Amid the Storm
- Activision's Call of Duty: Black Ops 7 (2024 release)
- inXile's steampunk RPG Clockwork Revolution
- Obsidian's Grounded 2 and The Outer Worlds 2
- The Coalition's Gears of War: Reloaded
- MachineGames' Indiana Jones and the Great Circle
- Playground Games' Fable reboot and next Forza Horizon
The showcase closed with teasers for major 2026 releases including Forza, Fable, Gears of War: E-Day, and a potential Halo: Combat Evolved remake. However, Turn 10 Studios (Forza Motorsport) suffered heavy layoffs despite their franchise appearing secure.
The Shadow Projects Raising Concerns
Several notable absentees from June's showcase now loom as potential warning signs:
- Avalanche Studios' co-op heist game Contraband
- Undead Labs' State of Decay 3
- Ninja Theory's Project Mara psychological horror title
- Hideo Kojima's OD collaboration
- Bethesda's Starfield expansions and The Elder Scrolls VI
- Blizzard's rumored StarCraft shooter
The upcoming gamescom conference in August may provide clarity about these mystery projects. Microsoft continues developing its next-generation Xbox console and exploring handheld gaming solutions, though plans appear increasingly fluid.
While showcased titles remain on track, the long-term stability of Xbox's exclusive content pipeline faces legitimate scrutiny following these seismic cuts across Microsoft's gaming division.