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Microsoft Shockwaves: Hundreds Laid Off in Gaming Division as ‘Perfect Dark’ and ‘Everwild’ Projects Get Canceled

By: Skye Harper | July 4, 2025 / 3:30 PM
Microsoft Shockwaves: Hundreds Laid Off in Gaming Division as ‘Perfect Dark’ and ‘Everwild’ Projects Get Canceled

In a stunning shakeup, Microsoft has reportedly laid off hundreds of employees within its gaming division, sparking concern across the industry. The tech giant has also made the surprising decision to cancel multiple high-profile projects, including, but definitely not limited to the eagerly anticipated titles ‘Perfect Dark’ and ‘Everwild’.

The layoffs come as part of a broader restructuring effort amid a challenging market for gaming and tech companies, reflecting a shift in Microsoft’s strategy toward its Xbox and gaming studios. Both Perfect Dark, a reboot of the classic espionage franchise, and Everwild, a mystical adventure from Rare, were highly anticipated by fans eager for fresh experiences on Xbox platforms.

Industry insiders say this wave of cuts is among the most significant in recent Microsoft gaming history, impacting not only developers but also support staff across several studios.

While Microsoft has yet to provide a detailed public statement, sources close to the matter suggest the company is refocusing its resources on fewer, more ambitious projects with longer development cycles.

Fans and employees alike are left grappling with the future of Xbox’s gaming lineup and what this means for the next generation of exclusive titles.

Stay tuned as more details emerge on Microsoft’s gaming shakeup and what it could mean for the industry’s biggest players.