Microsoft's recent layoffs in the gaming division involve approximately 9,000 employees. This wave of cuts is the largest since four Bethesda studios were closed in mid-2024. The cancellations of two major games—Rare's Everwild and The Initiative's Perfect Dark—led to significant studio losses. Other companies, including Blizzard and Raven Software, also experienced layoffs and project cancellations. The impact extended to smaller developers, including funding loss for John Romero's upcoming shooter, threatening the future of Romero Games. The scale of these layoffs reflects Microsoft’s extensive growth strategy over recent years.
The latest Xbox layoffs are part of larger cuts where approximately 9,000 Microsoft employees are affected, marking the fourth instance of such layoffs since last year.
This round of cuts includes the cancellation of high-profile games like Rare's Everwild and The Initiative's reboot of Perfect Dark, which led to significant studio losses.
Blizzard faced layoffs and the end of support for Warcraft Rumble, while Raven Software, Turn 10, Zenimax Online Studios, and mobile developer King also saw substantial job cuts.
The cuts extend to smaller independent developers, with John Romero's new project losing funding, raising uncertainty for Romero Games.
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