Xbox seems to be in hot water with layoffs affecting Microsoft's game development studios. Following this, the Perfect Dark remake and Everwild have been cancelled, along with other unannounced projects. Additionally, the Call of Duty teams at Activision also appear to be affected, along with other studios.
The layoffs impacted less than 4% of Microsoft's global workforce, according to a Microsoft spokesperson:
"We continue to implement organizational and workforce changes that are necessary to position the company and teams for success in a dynamic marketplace."
Here's everything to know about these layoffs and how they could affect future games.
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Also Read: Perfect Dark gets a brand new gameplay trailer at Xbox Showcase 2024
Xbox hit by mass layoffs, leading to game cancellations

Xbox Game Studios chief Matt Booty confirmed the cancellations in a memo to staff:
"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."
An impressive demo of the reimagining of Rare's beloved FPS franchise was showcased a year ago, featuring immersive-sim elements and solid visuals. Hence, Perfect Dark fans will surely be disappointed with this news.
Rare's Everwild was a new fantasy IP that was revealed to the public five years ago. With it being the first original title from Rare in a while, fans would have been eager to see how it would turn out. The game had also been in the works for some time since its last showcase. However, with reports of its troubled development emerging in the past, this outcome may not be too surprising.
Other reported impacts from recent Xbox layoffs
An unannounced MMORPG dubbed "Project Blackbird" from Elder Scrolls Online developer Zenimax has also been reportedly canceled, as per insider Jason Schreier.
Other studios have also seemingly been impacted by layoffs. This likely includes Raven Software — which is working on the upcoming Call of Duty Black Ops 7 — and Turn10 Studios of Forza Motorsport fame.
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