A challenging week for the gaming industry saw Microsoft announce over 9,000 layoffs, significantly impacting Xbox. This trend has been prevalent in recent years, with notable job losses at other companies like PlayStation and Riot. Microsoft stated these layoffs were necessary for success in a changing market.
Key projects affected include the cancellation of the “Perfect Dark” reboot and the departure of veteran developer Gregg Mayles from Rare’s “Everwild.” Romero Games has reportedly lost its entire development team, while substantial layoffs hit Forza Motorsport’s Turn 10 Studios. Additionally, 200 employees were laid off from Microsoft’s King Mobile Gaming Division.
Xbox Head Phil Spencer addressed employees, emphasizing the need for strategic growth and acknowledging the contributions of affected staff. He assured that HR is working to support impacted employees with benefits and job placement resources.
The studio plans to halt developments on several projects, and one executive suggested using AI tools to assist laid-off employees in finding new opportunities, sparking mixed reactions. The sentiment remains heavy as the industry grapples with ongoing layoffs and project cancellations.
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