Wednesday was a dark day for Windows and Xbox maker Microsoft, with the firm announcing over 9,000 layoffs and raising its 2025 total to 15,300. The company's gaming division was one of several that was affected significantly, and as part of the cuts, multiple projects — including Rare's new property Everwild, ZeniMax Online Studios' unannounced upcoming MMORPG, and The Initiative's Perfect Dark — were all cancelled. The Initiative as a studio has also been shuttered, its partnership with Tomb Raider developer Crystal Dynamics ended abruptly by the closure.
There's no way to sugarcoat it: it's a terrible day to be an Xbox fan, with these layoffs adding to years of brutal game industry cuts and undermining recent excitement in Microsoft's gaming brand spurred on by the Xbox Games Showcase and the announcement of the Xbox Ally handhelds.
