A Franchise Giant Hits the Brakes
Microsoft’s Xbox division is undergoing one of the most dramatic shakeups in its history. With the cancellation of Perfect Dark, Everwild, and several unannounced projects — and the layoff of roughly 9,000 employees — the gaming world is asking:
Is this a bold strategic reset, or a sign of Xbox slowly stepping away from console gaming as we know it?
Let’s break down the facts, the reactions, and what this means for the future of Xbox.
⚰️ Cancelled Dreams: Perfect Dark and Everwild Get the Axe
In early July, Xbox confirmed the cancellation of:
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The long-anticipated Perfect Dark reboot by The Initiative
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Rare’s mystical adventure Everwild (announced in 2019)
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A ZeniMax-developed MMORPG codenamed “Blackbird”
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Two more unannounced internal projects
The Perfect Dark reboot had gone through multiple reboots itself — plagued by leadership turnover and delays. Despite years of development, insiders say the game never reached a solid playable state (Polygon).
Everwild, on the other hand, was kept shrouded in secrecy. Rumors of constant rewrites and lack of gameplay direction seemed to have finally caught up with it.
The Layoffs: 9,000 Jobs Cut Across Xbox, ZeniMax, Rare, and King
These cancellations are part of a larger restructuring that saw ~4% of Microsoft’s gaming workforce laid off — with studios like The Initiative reportedly shuttered entirely.
According to Xbox Game Studios President Matt Booty:
“These decisions… reflect a broader effort to adjust priorities and focus resources to set our teams up for greater success.”
(The Verge)
Phil Spencer echoed that sentiment, stating:
“We must make choices now for continued success in future years… These changes position Xbox for long-term growth.”
(Wired)
Xbox also claims over 40 projects remain in development, though no updated list has been shared publicly.
Community Reaction: Mixed, Blunt, and Brutally Honest
As news spread, reactions across Reddit, Twitter, and gaming forums were sharply divided:
Some Support the Move
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A growing group of fans blames mismanagement for the underwhelming state of these projects.
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Reddit user u/boostedb1mmer wrote:
“If your job is to make and release games and you’re not making or releasing games… that’s your fault.”
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Others pointed out that Game Pass subscribers want playable results, not endless dev cycles.
Featured Video: Xbox Layoffs & Cancelled Games Breakdown
This video breaks down Xbox’s recent layoffs and game cancellations, including Perfect Dark, Everwild, and what it all means for the future of Xbox gaming.
Others Are Furious and Heartbroken
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Fans of Rare and Perfect Dark expressed deep disappointment:
“Perfect Dark deserved better than this. This is what happens when you hire studio heads with no clear vision.” — Reddit
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Developer support was also voiced, with former employees sharing sentiments like:
“It’s such a terrible feeling and I don’t wish it on anyone.”
Recent Game Failures: A Pattern of Overhype?
The cancellations didn’t happen in a vacuum. They follow a rough year for Xbox Game Studios:
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Redfall — Widely panned at launch for poor AI, bugs, and uninspired gameplay
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Hi-Fi Rush — Critically praised but commercially underwhelming
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State of Decay 3, Fable — Still in limbo after years of announcements
Critics say Microsoft may be cutting losses early before another Redfall-scale embarrassment. Others worry Xbox is too quick to abandon potential hits.
Strategic Reset or Quiet Exit?
What Xbox Is Saying:
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“More focus” on high-quality titles
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“Better agility” by trimming layers of management
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“Game Pass remains a priority”
While Fans Are Reading Between the Lines:
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A shift away from risky AAA exclusives
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A future of multiplatform releases, live services, and safe bets
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Potential withdrawal from hardware development (some speculate Xbox consoles may be phased out)
What Comes Next?
| What to Watch For | Why It Matters |
|---|---|
| Xbox’s next showcase | Will they reveal what’s left in development? |
| Fable and State of Decay 3 | Xbox’s best chance to restore faith |
| Game Pass content pipeline | Can they keep subscribers engaged without flagship exclusives? |
| Xbox console future | Will Microsoft double down on cloud and PC-first? |
Final Word: A Future in Flux
Whether you view these changes as overdue accountability or the slow death of creative ambition, one thing is clear: Xbox is no longer playing the same game it did even two years ago.
For some, that’s a smart evolution. For others, it’s the end of a dream.
But in either case, the next move matters more than ever.