Microsoft has reportedly canceled long in development Rare game, Everwild, as layoffs confirmed today sweep across Xbox.
IGN reported on the cuts, revealed a memo sent to staff by Xbox boss Phil Spencer and reviewed by IGN. Reports indicate over 9,000 staff across Microsoft may be hit, with Candy Crush developer King and Bethesda both hit hard.
VGC was first to report the Everwild news, which IGN sources have corroborated. IGN has asked Microsoft for comment.
In the memo, Spencer failed to confirm specifics, telling staff “any organizational shifts will be shared by your team leaders in the coming days.”
The following message from Phil Spencer was shared to all gaming staff today:
Today we are sharing decisions that will impact colleagues across our organization. To position Gaming for enduring success and allow us to focus on strategic growth areas, we will end or decrease work in certain areas of the business and follow Microsoft’s lead in removing layers of management to increase agility and effectiveness. Out of respect for those impacted today, the specifics of today’s notifications and any organizational shifts will be shared by your team leaders in the coming days.
I recognize that these changes come at a time when we have more players, games, and gaming hours than ever before. Our platform, hardware, and game roadmap have never looked stronger. The success we're seeing currently is based on tough decisions we've made previously. We must make choices now for continued success in future years and a key part of that strategy is the discipline to prioritize the strongest opportunities. We will protect what is thriving and concentrate effort on areas with the greatest potential, while delivering on the expectations the company has for our business. This focused approach means we can deliver exceptional games and experiences for players for generations to come.
Prioritizing our opportunities is essential, but that does not lessen the significance of this moment. Simply put, we would not be where we are today without the time, energy, and creativity of those whose roles are impacted. These decisions are not a reflection of the talent, creativity, and dedication of the people involved. Our momentum is not accidental — it is the result of years of dedicated effort from our teams.
HR is working directly with impacted employees to provide severance plan benefits (aligned with local laws), including pay, healthcare coverage, and job placement resources to support their transition. Employees whose roles were eliminated are encouraged to explore open positions across Microsoft Gaming, where their applications will be given priority review.
Thank you to everyone who has shaped our culture, our products, and our community. We will move forward with deep appreciation and respect for all who have contributed to this journey.
Phil
In February, Spencer issued an update on Everwild following repeated no-shows at various Xbox livestreams since its 2019 announcement.
In an interview with XboxEra, Spencer listed Everwild as one of the games yet to come out that he was excited for, adding he’d recently visited Rare, which runs live service pirate adventure game Sea of Thieves, to get a look at Everwild and the progress the developers were making.
“Yeah, State of Decay is just one of the franchises I love back from the original one, so that one stays on the board. I do think the work that Double Fine’s doing and how Tim [Schafer] kind of solicits feedback from the team. And the other one, I’ll say because I was recently out at Rare. It’s nice to see the team with Everwild and the progress that they’re making.”
Spencer said Microsoft had been able to give the developers of those games (State of Decay, the next game from Double Fine, and Everwild) time while still having a packed schedule of releases (bolstered, obviously, by the acquisitions of Bethesda and Activision Blizzard).
“We can give those teams time,” Spencer said. “And next week I’m going to be up in Vancouver with the Coalition [Gears of War developer] — and how fun is that?”
Everwild had faced concern amid reboot reports and the exit of creative director Simon Woodroffe in 2020. Rare filled the director's chair with veteran designer Gregg Mayles, who previously worked on Donkey Kong Country, Banjo-Kazooie, Viva Pinata, and Sea of Thieves.
What was Everwilds? Reports indicated it was a third-person adventure game with god game elements, but given how long it was in development, that may have changed. The last Everwilds trailer, released in July 2020, carried the following description: “Everwild is a brand new IP from Rare. A unique and unforgettable experience await in a natural and magical world.”
Microsoft has made a huge number of cuts to its gaming business since acquiring Activision Blizzard for $69 billion. It laid off 1,900 staff in January 2024, then made further cuts just a few months later when it closed Redfall developer Arkane Austin and Hi-Fi Rush developer Tango Gameworks. In September 2024, Microsoft cut a further 650 staff from its gaming business. And in May this year, Microsoft cut an eye-watering 6,000 staff, or 3% of its entire workforce. Today's round of layoffs is the fourth to hit Microsoft's gaming business in 18 months.
Speaking to IGN in June 2024, Xbox boss Phil Spencer said: "I have to run a sustainable business inside the company and grow, and that means sometimes I have to make hard decisions that frankly are not decisions I love, but decisions that somebody needs to go make."
The cuts come hot on the heels of Microsoft's confirmation that it plans to release next-gen Xbox consoles, and has a strong presence at video game show gamescom.
Wesley is Director, News at IGN. Find him on Twitter at @wyp100. You can reach Wesley at [email protected] or confidentially at [email protected].
