Table of Contents
How Will Microsoft’s Brutal Xbox Layoffs Impact Your Favorite Games in 2025?
I need to tell you about something that’s happening at Microsoft right now. It’s not good news for Xbox fans.
Microsoft just cut 9,000 jobs across the company. The Xbox division got hit hard. Really hard. Matt Booty, who runs Xbox Game Studios, sent an email to his team. That email confirmed what many people feared.
What Studios Are Closing?
The Initiative is shutting down completely. This studio opened seven years ago. They were working on a new Perfect Dark game with Crystal Dynamics. That game? It’s canceled now.
Perfect Dark was supposed to be a big comeback for the series. Fans waited years for news about it. Now they won’t get to play it at all.
Which Games Got Canceled?
The cuts don’t stop there. Here’s what else got the axe:
- Everwild – Rare’s mysterious project from 2019
- Blackbird – A secret online game from ZeniMax
- Perfect Dark reboot – The Initiative’s main project
Everwild is particularly painful. Rare announced it in 2019. The team already rebooted it once during development. Now it’s gone forever.
Blackbird hurts too. ZeniMax Online worked on this game since 2018. Seven years of work, just thrown away.
How Many People Lost Their Jobs?
The numbers are scary:
- King mobile games – 10% of staff cut
- Turn 10 Studios – Up to 50% of workers may lose jobs
- Raven Software – Cuts confirmed, exact numbers unknown
- The Initiative – Entire studio closed
Turn 10 makes the Forza racing games. Losing half their team could really hurt future Forza releases.
Why Is This Happening?
Matt Booty explained it in his email. He said Microsoft needs to “adjust priorities and focus resources.” The gaming industry is changing fast. Companies are struggling to keep up.
But here’s the thing – this feels like more than just adjusting. This feels like panic.
Microsoft spent billions buying game studios. They bought Bethesda for $7.5 billion. They bought Activision Blizzard for $69 billion. Now they’re closing studios and firing people.
What About the Workers?
Microsoft says displaced workers can apply for other jobs within the company. That sounds nice on paper. But when you’re cutting 9,000 people, how many open spots are really available?
Game developers often have very specific skills. A Perfect Dark programmer might not easily switch to working on Office software.
The Bigger Picture
I’ve watched the gaming industry for years. This pattern keeps repeating. Companies buy studios. They promise creative freedom. Then when money gets tight, they start cutting.
The human cost is real. These aren’t just numbers on a spreadsheet. These are people with families, mortgages, and dreams.
What Games Are Still Coming?
Booty tried to end on a positive note. He said Xbox has “more than 40 projects in active development.” They have games coming this fall. They have a “strong slate” for 2026.
But after seeing Perfect Dark and Everwild get canceled, can we trust those other 40 projects are safe?
My Take on This Mess
This situation makes me worried about Xbox’s future. They’re cutting the creative teams that make great games. They’re canceling projects that fans actually wanted.
Microsoft has the money to support these studios. They chose not to. That tells you everything about their priorities right now.
The gaming industry needs stability to create amazing experiences. Constant layoffs and cancellations don’t create that stability. They create fear.
For Xbox fans, this is a dark day. For the workers who lost their jobs, it’s even darker.
The only question now is: which studio gets cut next?