Microsoft’s recent layoffs across its gaming divisions have led to several game cancellations and affected multiple developers. The reason for these layoffs is cited as the company’s effort to focus on strategic growth and improve agility and effectiveness. However, games featured in the Xbox Summer Showcase this June are reportedly unaffected by these layoffs.
In a memo to Microsoft’s gaming teams, Xbox Game Studios boss Matt Booty said, “Our overall portfolio strategy is unchanged: build games that excite our players, continue to grow our biggest franchises, and create new stories, worlds, and characters. We have more than 40 projects in active development, continued momentum on titles shipping this fall, and a strong slate headed into 2026.”
However, the layoffs have reportedly led to cancellations of some projects, including Rare’s Everwild, the Perfect Dark reboot, and others.
Microsoft previously has carried out multiple rounds of layoffs in its gaming divisions over the past one year. In January 2024, the company laid off 1,900 employees during the $69 billion acquisition of Activision Blizzard. It was followed by another round in September 2024, when 650 more workers lost their jobs.
Got any news tips, or want to discuss a possible story? Email us at ign_india@ign.com (to reach out with confidential tips, click here). For the latest on gaming, entertainment, pop culture, anime/manga, follow IGN India on Instagram, X, Facebook, and WhatsApp. For the latest videos, subscribe to us on YouTube.