Last week, Microsoft made headlines by laying off 9,000 employees, including many from the Xbox gaming division. This move aims to free up funds for an ambitious $80 billion investment in AI infrastructure, but it has impacted several upcoming game projects.
The Initiative, a studio working on the much-anticipated Perfect Dark, has been shut down, leaving developers without jobs. Similarly, Rare’s Everwild has been canceled, and a new MMORPG from ZeniMax Online Studios was also scrapped despite positive feedback from Xbox CEO Phil Spencer.
Additionally, several second-party projects that Xbox funded have faced cancellations. For example, Romero Games’ new shooter is no longer in development, effectively putting the studio’s future at risk. The fates of other projects remain uncertain; some have not been seen in years, raising concerns among gamers and industry insiders alike. However, there are hints that at least one project is still on the table, for now.
One of the projects teased nearly two years ago is OD, a horror game from the famous Hideo Kojima. Speculation is swirling online about its status, but sources say it is not affected by the recent cutbacks—at least for now. Many people online are anxious about the future of these titles, as gamers express worries on social media about losing excitement for upcoming releases.
Interestingly, while some projects are sacrificed for AI investments, Satya Nadella’s Microsoft promotes titles like Everwild as needing more time to develop. This situation makes it clear that Microsoft is prioritizing artificial intelligence over gaming, raising questions about its long-term vision for Xbox.
Further complicating matters is the future of Contraband, a heist game in development at Avalanche Studios. This project has faded from public view, with its trailer mysteriously pulled from Xbox’s YouTube channel. While some speculated it might be due to a music license issue, uncertainty lingers.
The wave of layoffs at Microsoft has sparked conversations about corporate ethics. Many employees were caught off guard, sharing their experiences of sudden job loss. The emotional toll is evident, and as the dust settles, more news about canceled projects and reduced commitments may surface.
Overall, this upheaval reflects a significant shift in how Microsoft approaches its gaming and technology strategy. With many beloved titles now uncertain, fans are left wondering what the future holds for the Xbox brand.