Microsoft laid off numerous Xbox developers, canceled games, and closed at least one studio this week as part of the company's latest round of significant cuts. The company still has 40+ projects that remain in the works, and it's now been reported that everything shown during the Xbox Games Showcase in June remains in development.
Windows Central reported that "everything" in that showcase is "safe." Some of the games on display in the showcase included Call of Duty: Black Ops 7, The Outer Worlds 2, Grounded 2, Keeper, Gears of War: Reloaded, and Clockwork Revolution. Some games not shown at the event, like State of Decay 3, are going forward as well, the report said. Separately, a source told Variety that "every game" on display at the event in June is "continuing on."
In terms of games that are not going forward, Rare's Everwild and the new Perfect Dark have been canceled--neither appeared at the Showcase, fueling theories about what that could mean. Microsoft's Matt Booty said in a memo to staff that "several unannounced projects" have been canceled as well, and one of them could be the reported MMO Blackbird from ZeniMax Online Studios.
Booty said the game cancellations, layoffs, and closure of Perfect Dark studio The Initiative "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."
Going forward, Booty claimed Xbox's portfolio strategy is "unchanged," and that is to make great games filled with "new stories, worlds, and characters." He specified that Microsoft has 40+ games in "active development" and teased a "strong slate" for 2026 that will include the new Fable, Gears of War: E-Day, the next Forza game, and a possible Halo release.
Microsoft's cuts to Xbox came as part of a wider cost-cutting program that saw the technology giant lay off about 4% of its global workforce, amounting to around 9,000 people.
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