Xbox 2025 Layoff Thread (crazy we need one...)

Blade cancellation is fake btw.

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I’m sorry……. but out of all the games that could have gotten cancelled…… that’s the one that sent you to the other console…. Okay

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well… shit: from Matt Booty

We have made the decision to stop development of Perfect Dark and Everwild as well as wind down several unannounced projects across our portfolio. As part of this, we are closing one of our studios, The Initiative. These decisions, along with other changes across our teams, reflect a broader effort to adjust priorities and focus resources to set up our teams for greater success within a changing industry landscape. We did not make these choices lightly, as each project and team represent years of effort, imagination, and commitment.

Our overall portfolio strategy is unchanged: build games that excite our players, continue to grow our biggest franchises, and create new stories, worlds, and characters. We have more than 40 projects in active development, continued momentum on titles shipping this fall, and a strong slate headed into 2026.

For those directly affected, we are working closely with HR and studio leadership to provide support, including severance, career transition assistance, and where possible, opportunities to explore roles on other teams.  To everyone across our studios: thank you. Your creativity and resilience continue to define who we are. I believe in the strength of our teams and the direction we’re taking on the path ahead.

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The Initiative closing makes some sense with PD cancelled as I guess it’s a really expensive studio to run and was created at a time Xbox didn’t have so many so-called AAA studios…

Still sad though, poor devs and sad for their promise too as when first created it seemed we’d get some massive games from them

Perfect Dark is cancelled

Jez on X: ā€œCONFIRMED: As we reported earlier, Microsoft is shutting down The Initiative, and cancelling Perfect Dark. Matt Booty shared this email with staff earlier. https://t.co/PHiBhmKLpcā€ / X

"Following Phil’s note, I want to share more about the changes to the Studios business units.

We have made the decision to stop development of Perfect Dark and Everwild as well as wind down several unannounced projects across our portfolio. As part of this, we are closing one of our studios, The Initiative. These decisions, along with other changes across our teams, reflect a broader effort to adjust priorities and focus resources to set up our teams for greater success within a changing industry landscape. We did not make these choices lightly, as each project and team represent years of effort, imagination, and commitment.

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I mean yay for 40 projects, but that doesn’t hinder the sad news transpired today. It is wild that majority of titles that came from first year of this gen either went drastic change (343i) or didn’t see the light of day. I’m glad State of Decay 3 is still alive, but I hope to see release date soon to escape possible death.

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Not surprised, I liked what I saw from PD. But I think Peter Gallagher really took Phil Spencer for a spin. I don’t know how you get two support studios helping you out for a number of years and still have barely anything to show.

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Not really since historically all Perfect Dark has in common with those games is being in the first person. Really fucking sucks if its canceled

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I have a lot of nostalgia for perfect dark. I was looking forward to the reimagining. Other than State of Decay 3, that was my most anticipated game coming out of Microsoft. So yes, that is the one that makes me question whether it’s worth sticking with xbox next gen.

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So it’s canceled. Fuck!

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Wow so i wrote praying for Perfect Dark and The Initiative and State of Decay 3 and Undead Labs.

And one of them got layoffs and the other simply got closed and it’s game cancelled holy christ, these had been my two most anticipated games for years.

I’ll comment more once the day is over or in a few days but to say it quickly, no surprise that MS Gaming Studios have been terribly missmanaged since 2018 and whle i’m not going to ask for any known boss to step down because, whatever…

It’s clear that they need somebody or a team that’s in charge of studying the viability of the studios’ projects, and either greenlight them or not allow them.

It’s a massacre and it’s clear some studios like Compulsion, NT or Double Fine are in real danger

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Today sucked more than I was expecting tbh. Felt like a bit of doomerism last week but uhhh yeah actually turned out to be pretty bad.

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It’s like they want a refresh before next gen, whenever that will be.

The initiative studio is closed.

Biggest L since I started following xbox and stuff.

The studio closed without releasing any game. Think about all the time, money and resources wasted.

Absolutely insane. What is the management even doing?

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Microsoft continues to make it very hard to remain an Xbox fan.

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Phil Spencer and Matt Booty are jokes for how poorly they mishandled Xbox studios. We shouldn’t be in this scenario where a game Has been in development for 7 years and did a smoke and mirrors show last year to give false hope. I feel for all because poor management has failed employees and Xbox has lost their way with Phil in charge because we can longer blame Don when he’s been in charge for 10+ years

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The issue isn’t that Perfect Dark is cancelled or the studio is closed. It’s been in development for 7+ years. There have been plenty of games revealed with a logo or CGI trailer that were later cancelled (remember Rockstar’s Agent).

The issue is that they gave everyone false hope by doing the gameplay reveal in last year’s showcase, when everyone assumed it was cancelled. If you were going to cancel it, cancel it.

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I get it, development is just too costly and no one want to take the risks, even MS.

Perfect Dark took 7 years to get a teaser and a gameplay trailer out and it’s just too damn long for anybody involved.

I would have hoped Everwild could have been a smaller project released in Early Access, like Grounded. Maybe it would have been better.

Obsidian feels like some kind of anomaly right now. These guys must feel blessed by some video games deities.

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Not to defend, but this is a new era, let alone one that can be said not recovered from a virus that was COVID. If Sony struggle and layoff and close studios down in this gen with their numbers still being good, then you know this era is not as well as last time. If it was last era, in theory or paper, this gen would have been phenomenal. But the reality is, this is how it is now.

With that all said this is the frustrating part. Realistically, they are doing fine, yet all these decisions still happen. It’s like why not just meet the finish line. Why not give them a chance? That’s also something this era really highlighted at its worst.

Well that sucks… Outside of Fable I would say Perfect Dark was one of my most anticipated games.

Absolutely loved PD back in the day and with Crystal Dynamics working on it (one of my favourite studios) it seemed like a absolute win.

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