On July 2, Microsoft revealed that it would be implementing substantial layoffs that could affect up to 9,000 employees, with the Xbox division feeling the brunt of these cuts. The company has made the decision to cancel the development of ‘Perfect Dark’ from The Initiative, which will also result in the closure of the studio. Additionally, Rare’s ‘Everwild,’ announced back in 2019, has also been scrapped. Furthermore, Turn 10 Studios, the team behind ‘Forza Motorsport,’ is set to see a reduction of more than 70 employees.
In a memo sent to staff, Microsoft Gaming CEO Phil Spencer emphasized the need for strategic decisions to secure future success: “We must make choices now for continued success in future years and a key part of that strategy is the discipline to prioritize the strongest opportunities,” he stated. He reassured employees that the company intends to focus on thriving projects and efforts that show the greatest potential. “This focused approach means we can deliver exceptional games and experiences for players for generations to come.”
There were rumors suggesting that Spencer might retire after the launch of the next generation of Xbox. However, Microsoft has confirmed to The Verge that he will not be stepping down as the head of Xbox “anytime soon.”
