On July 2nd, Microsoft announced sweeping layoffs affecting as many as 9,000 employees, and they had a big impact on the company’s Xbox studios. Microsoft cancelled Perfect Dark from The Initiative and closed the studio. Rare’s Everwild, announced in 2019, was cancelled, too. And Forza Motorsport developer Turn 10 Studios will lose more than 70 employees.
“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,” Microsoft Gaming CEO Phil Spencer said in a memo to employees. “We will protect what is thriving and concentrate effort on areas with the greatest potential, while delivering on the expectations the company has for our business. This focused approach means we can deliver exceptional games and experiences for players for generations to come.”
A rumor was circulating that Spencer was planning to retire after Microsoft launched its next generation of Xbox, but the company tells The Verge that Spencer isn’t retiring as the chief of Xbox “anytime soon.“
Here’s all of our coverage of the layoffs.
