Microsoft has reportedly cancelled Rare’s upcoming Everwild amid job cuts

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By Patrick Hearn | Published July 2, 2025

In a major shake-up across Xbox Game Studios, Microsoft has reportedly cancelled Rare’s long-awaited title Everwild, a decision that comes alongside sweeping layoffs affecting thousands of employees across the company.

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🔻 Massive Job Cuts Hit Microsoft—Again

Microsoft is undergoing another wave of major workforce reductions, this time hitting several of its gaming divisions. According to Bloomberg, around 10% of staff at King—the European-based developer best known for Candy Crush—were let go. That’s roughly 200 employees from King alone.

But the impact is far broader.

🚨 Microsoft is expected to cut as many as 9,000 jobs company-wide by the end of the day, spanning several studios including:

• 🎮 Rare
• 🕹️ ZeniMax Studios
• 🚘 Turn 10 (Forza Motorsport)
• 🔫 Raven Software
• ⚔️ Halo’s development teams

A source close to the matter says Turn 10 may have lost nearly half its staff. Social media posts from developers confirm layoffs across several teams, making this one of Xbox’s most far-reaching rounds of layoffs yet.

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🎮 Everwild Cancelled After Years of Development

Among the hardest-hitting news? The reported cancellation of Everwild, Rare’s mysterious fantasy adventure game that had been in development for over a decade.

Originally revealed in 2019, Everwild was teased as a “brand-new IP from Rare” with a magical world and a unique art style that sparked a lot of early excitement. However, the project soon slipped into silence, and by 2021, it was revealed that the game had gone back into early development due to internal challenges.

Despite a glimmer of hope in February 2025, when Xbox boss Phil Spencer confirmed the game was still in development, it now appears the troubled title has finally been shelved. The exact reasons remain unclear, but a combination of internal reboots, lack of progress, and shifting priorities likely played a role.

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💥 More Games Caught in the Crossfire

Everwild isn’t the only casualty. According to industry reporter Jason Schreier, other anticipated titles have also been scrapped as part of the layoffs:

• 🛡️ Blackbird: The code name for an upcoming MMORPG from ZeniMax Online Studios, in the works since 2018. Touted as a potential follow-up to The Elder Scrolls Online, Blackbird had long been in development but never saw a public reveal. It’s now reportedly cancelled.
• 🕵️ Perfect Dark Reboot: Development on this reboot was being led by The Initiative, a new studio formed by Microsoft in 2018. As part of the cuts, The Initiative has now been shut down, putting the future of Perfect Dark in serious doubt.

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🧾 Internal Response From Xbox Leadership

In a staff-wide email, Microsoft Gaming CEO Phil Spencer addressed the changes. As reported by Bloomberg, he said:

“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.”

This is now the fourth wave of layoffs at Xbox in the past 18 months:

• 🗓️ February 2024: ~2,000 jobs cut
• 🗓️ September 2024: ~650 jobs cut
• 🗓️ May 2025: ~6,000 positions lost
• 🗓️ July 2025: Up to 9,000 more

Spencer also noted that affected employees who reapply for open roles within Microsoft will receive priority consideration.

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📈 Broader Industry Implications

This wave of cancellations and studio closures paints a concerning picture for Xbox’s current strategy. While Microsoft has been pushing hard on Game Pass, studio acquisitions, and AI-powered tools, this level of disruption—especially affecting beloved studios and new IPs—suggests growing pressure to consolidate and re-focus.

The cancellation of Everwild, a game with more than a decade of development behind it, highlights the rising cost and risk of ambitious, original games in today’s market.

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❓ FAQ: What You Need to Know About Microsoft’s Layoffs and Game Cancellations

Q: What happened to Everwild?
A: Everwild, an original IP from Rare first revealed in 2019, has reportedly been cancelled. The game faced development issues for years, including at least one reboot.

Q: How many employees are being let go?
A: Microsoft is expected to cut up to 9,000 employees across all divisions in this round of layoffs.

Q: Which other games were cancelled?
A: Two major titles were reportedly scrapped:

• Blackbird, a new MMORPG from ZeniMax Online Studios
• The Perfect Dark reboot following the closure of its developer, The Initiative

Q: Which studios were affected?
A: Layoffs impacted Rare, King, ZeniMax, Turn 10, Raven Software, and others. Turn 10 reportedly lost nearly half its team.

Q: What did Phil Spencer say about the cuts?
A: In an internal email, he cited a need to “focus on strategic growth areas” and simplify management layers for better agility.

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🏁 Final Thoughts

The cancellation of Everwild marks a heartbreaking end for a project that once held so much promise. It also reflects the difficult decisions Microsoft is making in a changing gaming landscape. As the company prioritizes efficiency, streamlining, and profitability, even long-awaited and big-budget titles aren’t immune.

For fans and developers alike, it’s a tough moment. But it’s also a reminder of how volatile the modern game industry can be—even for the biggest players.

If nothing else, this news shows that even legendary studios like Rare aren’t safe from the shifting sands of corporate strategy. Here’s hoping the creativity behind games like Sea of Thieves and Banjo-Kazooie finds a new outlet in the future.

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