But what are they up to, and are their offerings going to be enough to either go toe to toe with the PS5, or, at the very least, gather enough momentum to attempt reversing the two consoles’ fading fortunes? We’re here to help answer those questions.

Join us as we take a look at what Xbox Game Studios is cooking up for a year that’s shaping up to be just as good as the one before it on the gaming front. It’s also a big year as the Xbox turns 25, and as such, there’s going to be a lot to be excited about if you’ve been a fan over the years. Let’s get started.

The Coalition

The studio behind the Gears of War franchise is all set to take the meta-narrative it has established over the years back to its roots, bringing back Marcus and Dom to the stage for a prequel that has fans excited to learn more about the gruff soldier’s turbulent relationship with his superiors and the events that led to the Locusts rising as a threat to his world in Gears of War: E-Day.

In a look back at the year it had at 2025, which featured studio heads discussing future projects, Mike Crump (who heads The Coalition) was pretty excited to assert that E-Day is the franchise’s “most ambitious title yet”, and confirmed that it was on track to release later this year with Polish studio People Can Fly joining the studio to lend a helping hand.

We’re going to be watching out with very sharp eyes for a release date announcement, and we’re sure that those among you who love Gears of War share our enthusiasm.

Compulsion Games

The South of Midnight developer has been basking in the success of the title, expressing gratitude for its excellent reception and confirming that a new project is already in the works. It has been stated that the lessons it picked up from developing South of Midnight have allowed it to grow and mature as a studio, and that this new project is going to reflect those learnings to be a game that is made to impress.

However, the studio is likely to focus on the multiplatform release for South of Midnight over this year, and its new project is likely not going to surface in 2026.

Double Fine

The studio has been relatively silent since the release of Keeper last year, and with little to no news about its next project surfacing in the months that followed, we can only guess that the team behind a very unique game is getting some well-deserved rest while they put down ideas for their next big thing on the drawing board.

That’s not to say we may not hear from the studio over the course of the year, though, and we’re hoping for more unique ideas, given its last project was a game with no dialogue that still managed to keep us glued to our screens.

Halo Studios

It looks like Halo is taking the Gears of War route this year, with Halo Studios all set to release Halo: Campaign Evolved sometime this year for the PS5, PC, and Xbox. A remake of a timeless classic, the new game is slated to bring several improvements to the original’s gameplay loop, such as the ability to hijack vehicles, weapon zooming, a redesign for the Warthog, up to 4-player online coop and 2-player couch coop, and so much more.

The visuals are also getting a leg up with Unreal Engine 5 powering the experience. The game’s iconic multiplayer being given a pass is a bummer, though. However, getting to see the campaign in a whole new light is something we’re definitely excited about. The bonus missions that act as a prequel are another nice touch that we’re curious about.

InXile Entertainment

We’ve been looking forward to Clockwork Revolution ever since this title was announced by inXile back in 2023. With a solid look into how the game works last year, and rumors that it could be slated for release this year, which must be taken with a pinch of salt, this is definitely one to watch out for.

If you’re unfamiliar with the game, it brings a very interesting premise with some time-travel shenanigans that pits you against a manipulative antagonist and her quest to consolidate power with a customizable protagonist. It’s quite impressive, and we hope the rumors that it’s making its way to our screens later this year are true, although we’re only carefully optimistic on that front.

Mojang Studios

There’s a lot to be excited about if you’re into Minecraft, as Mojang is bringing eight new baby farm mobs to the game, replete with visual changes that make them quite adorable indeed. However, the drop is still in its testing phase, and you might have to wait a while for an official release announcement, depending on how things progress.

However, that’s still good news, and we’ll be sure to have an update for you as soon as we can confirm any changes to the status quo.

Ninja Theory

The studio behind Hellblade is reportedly working on a new title that’s focused on being more interactive and action-oriented than its past offerings while sustaining the cinematic quality that it is now known for, as per Windows Central’s Jez Corden.

While there is speculation that the new title could be Hellblade 3, it could very well be a new IP. Either way, it’s likely that 2026 might be a quiet year for Ninja Theory, but that could very well change in the coming months.

Obsidian Entertainment

There are reportedly four new projects in development, along with speculations that a remake of Fallout: New Vegas in the vein of last year’s Oblivion is likely coming this year. However, that remains currently unconfirmed, so hopefully this month’s Xbox Direct may bring news on that front.

But if you happen to miss it, fret not, since we’re definitely going to have your back on that one!

Playground Games

The long-standing staple of Xbox Game Studios is going to be front and center at the Developer_Direct event, with both Fable and Forza Horizon 6 slated to make an appearance in what is shaping up to be a big year for the studio.

With no gameplay currently available for both titles, we’re quite certain that we’ll be getting quite a close look at what each of them is bringing to the table. While Fable is poised to be a reboot of the franchise, aimed at modernizing it for a new generation of players, Forza Horizon 6 is going to take you to Japan this time around, with a map that’s touted to be the biggest one yet in the franchise and a lot to look forward to in it.

We expect a release date announcement later this month, although that could take a little longer. Both games are currently slated for a 2026 release, though.

Rare

While the cancellation of Everwild is sure to have been a blow to the Sea of Thieves developer, the appointment of Lousie O’ Connor as the Chief of Staff for Xbox Game Studios might help with dealing with that loss and the layoffs that affected the studio.

It’s looking like a quiet year that’s going to be spent figuring out a way forward for the studio; however, we’re hopeful that we at least get a hint at what it aims to do next.

Turn 10 Studios

The studio behind Forza Motorsport is going to stop updates to its flagship title in order to help Playground Games with Forza Horizon 6. While that news is bittersweet, we’re still happy that the studio has managed to survive the turbulence of last year and come out on top.

Who knows, we might even get news of a new project a little later down the line. But for now, it’s looking like a relatively quiet year for this one.

Undead Labs

We’re still waiting on news about State of Decay 3 after Undead Labs posted that very cryptic teaser ahead of the 2025 edition of Summer Games Fest. However, things have been very quiet on that front, and the studio’s layoffs from last year have us a tad worried about the title’s current status.

We’re still holding out hope, however, and would be delighted to hear some good news at Developer_Direct later this month. Fingers crossed, we’d say.

World’s Edge

The studio’s job postings from last year fuelled a lot of speculation that it was taking a more hands-on approach to Age of Empires, and that an Unreal Engine-powered new addition to the franchise was in the works. And while nothing is confirmed at this moment, that could very well change later this year.

It would make sense for the studio to bring out a new title in its flagship franchise, and you can bet that we’d be very happy to hear about it over the course of this year. Once again, we’re going to advise cautious optimism, but one can always hope, right?

And that’s a wrap on all of the big releases and potential announcements from Xbox Game Studios as it gears up for a year that’s quite the landmark for the iconic console. We can’t wait to get our hands on all of the titles that are coming our way, and hope to join you as we enjoy a year of great games from these talented studios.

“Today was my last day at Rare,” posted Mayles. “Thanks to everyone who played and enjoyed any of the games I helped create while I was there. Also thanks to all the people that worked on the games alongside me.”

Mayles has worked with Rare for quite a bit of time, with his first work with the studio involving the game Solar Jetman from all the way back in 1990. Since then, he has served various roles on different projects.

He also went on to work as game director on some of the most critically-acclaimed and beloved games Rare has made, from Super NES title Donkey Kong Country, to Banjoe-Kazooie and Banjo-Tooie on the Nintendo 64, and even Viva Pinata on the Xbox 360. Most recently, Mayles also worked as creative director on multiplayer pirate game Sea of Thieves.

Mayles’ departure from Rare also poses doubts on the future of the Banjo-Kazooie franchise, since he also worked on the last game that the franchise had seen – Banjo-Kazooie: Nuts and Bolts on the Xbox 360. Earlier this year, composer of the first game in the franchise, Grant Kirkhope, had noted that he had “zero hope” for a new game in the franchise.

“I’ve said it before … but .. I have zero hope for another Banjo game, plus all you die hard fans would instantly hate it and slag it off no matter how good it was, it never works,” posted Kirkhope on social media back in January. Despite this, however, he also said that he would be open to working on the soundtrack for a potential new Banjo-Kazooie game.

The departure of Mayles was likely part of a larger restructuring taking place at Rare in light of the cancellation of Everwild back in July. At the time, reports had indicated that, along with the game itself being cancelled, there would also be some changes coming to how Rare has functioned.

Interestingly, back in September, former Rare executive producer Louise O’Connor saw a major promotion, being appointed as the chief of staff for Xbox Game Studios as a whole. O’Connor had worked on quite a few projects at Rare before the promotion, with her first credit with the company showing up on adult-comedy platforming title Conker’s Bad Fur Day on the Nintendo 64 all the way back in 2001.

In the meantime, Rare has also confirmed that it is changing up how it releases content for Sea of Thieves. In a lengthy post, the developer revealed that, going forward, seasonal content for the multiplayer pirate game will be released over the course of three months in distinct phases. Along with this, it has also announced that the Sea of Thieves Insider Programme will be coming back in 2026.

As you might expect, the screenshots are all from a development build of Everwild that still seems quite far from release, and they give us a look at various UI aspects of the title, as well as some glimpses at what the world and its characters would have looked like. One of the screenshots even gives us a look at the game[‘s graphical settings screen with placeholder values.

When it comes to general gameplay UI, it looks like Everwild would have revolved quite a bit around taking care of the natural world around you. Quite a few UI elements revolve around the player’s inventory, with the in-development build using placeholder titles for the items. These items range from seeds to tools and figments. While no detail has been confirmed about what these items might be, there are also seemingly things dubbed Mosaics, which might feature more cosmetic decorative items like artwork or statues.

Everwild was reportedly cancelled as of July as part of Microsoft laying off more than 9,000 of its employees from across various divisions. Along with the title getting cancelled, Rare was also said to be going through some major restructuring. While not too many behind-the-scenes details about this have been revealed since then, the studio has confirmed that it would be taking a new approach to releasing content for Sea of Thieves.

Rare had revealed how it would be changing up its content strategy for Sea of Thieves back in July, when the company also confirmed that it would be bringing back the Insider Program to test out new content and features for the game in 2026.

“This is only the first step in opening us up to more community input, as starting from next Season we’re also planning a Seasonal Big Listen with our Insider Programme members.=,” said the studio. “We’ll be asking how you found the content we’ve recently released, and more broadly how you’re finding the whole package: performance, cheaters, bugs, enjoyability and more.”

“This will allow us to better track sentiment over time and identify gaps for content that addresses a desire or opportunity within our current feature set. And, of course, in line with this focus on transparency, we’ll share the results of these surveys with you, our players.”

Back in September, Microsoft had also announced that Everwild’s executive producer, Louise O’Connor, has been appointed as the chief of staff for the entirety of Xbox Game Studios. O’Connor has worked with Rare for 25 years, and has had a hand in the development of titles like Conker’s Bad Fur Day from back in 2001, and other games made by Rare since then.

O’Connor is a veteran of not only the gaming industry as a whole, but also of Rare itself, having worked with the studio for 25 years. She first started with the company while working on adult-comedy platforming game Conker’s Bad Fur Day for the Nintendo 64, which came out all the way back in 2001.

Interestingly, O’Connor is joining fellow Rare alumnus Craig Duncan, who had taken over from Alan Hartman as the head of Xbox Game Studios back in October 2024. The two former Rare employees now both have leadership roles over various development teams under the Xbox Game Studios banner, including The Coalition, Halo Studios, Double Fine, and Bethesda.

Rare’s last major in-development title was Everwild, which was confirmed to have been cancelled back in July as part of major lay-offs happening at Microsoft as a whole at the time. Along with the game getting cancelled, Rare itself was also slated to see some restructures, which in turn would result in more employees being let go from the studio.

In the meantime, the only major game Rare has ended up releasing for the last decade, aside from 2015’s compilation release Rare Replay, has been Sea of Thieves in 2018. In response to the cancellation of Everwild and other things happening at the studio, Rare announced a new approach to seasonal content in the multiplayer pirate game back in July.

Among the changes coming to how Sea of Thieves gets new content is the fact that seasonal content will be more spread out over the course of a season rather than being front-loaded with all of the content right from the get go. Along with this, the studio is also relaunching the Sea of Thieves Insider Programme to get the community involved in testing future content for the game.

With a three-month season taken into account, the first month of a fresh season of Sea of Thieves will get new sandbox features and worldbuilding setup for the story, which will in turn be continued with a headlining live event for the season in its second month. The third month of a season is slated to be a call-to-action for players that might be revisiting the title in a bid to revitalise the sandbox gameplay content.

Sea of Thieves has just started the second month of Season 17, being the first of the game’s seasons to follow the new structure. Season 17 brings with it the Smuggler’s League, as well as new content like smugglers’ hideouts and new loot types, as well as Smugglers’ Runs. Heists are also a major part of the season.

Sea of Thieves is available on PC, PS5, Xbox One and Xbox Series X/S.

Along with this, Rare has also said that it will be taking more community feedback into account when it comes to developing future seasonal content for Sea of Thieves. The reboot of the Sea of Thieves Insider Programme is slated to happen in 2026, and will add in a number of different community-centric programmes together.

“This is only the first step in opening us up to more community input, as starting from next Season we’re also planning a Seasonal Big Listen with our Insider Programme members.=,” said the studio. “We’ll be asking how you found the content we’ve recently released, and more broadly how you’re finding the whole package: performance, cheaters, bugs, enjoyability and more. This will allow us to better track sentiment over time and identify gaps for content that addresses a desire or opportunity within our current feature set. And, of course, in line with this focus on transparency, we’ll share the results of these surveys with you, our players.”

Rare has also revealed that it will be refining its approach to developing seasonal content for Sea of Thieves. To that end, the development team is being restructured, along with a change in how seasonal content for the game is made and released. Taking a three-month Sea of Thieves season into account, the cadence of released content will be split into three phases; one for each month.

On month one, new sandbox features and worldbuilding setup for the season will be introduced, while month two will follow this up with the headlining live event of the season making its debut, along with expansions to the game’s ongoing story and lore. The third month of the season will serve as a call-to-action for players that might be revisiting the game, and will involve a revitalisation for the sandbox gameplay content in the game.

Along with this, Sea of Thieves will continue to get live events, including a Community Weekend always being run in the first month of a season, and a Gold & Glory event in the last month. Since this will be a major shift for the studio, there will also be a transitionary period. Because of this, Season 16 will not be getting a Community Weekend, while Season 17’s Community Weekend will take place in early August.

Season 17, slated to be kicked off in August, will follow the aforementioned structure, with month one introducing the Smuggler’s League, along with new features like smugglers’ hideouts and new loot types, as well as Smugglers’ Runs. Month two will feature heists coming to Sea of Thieves as the headlining live event of the season, with season three focusing on refreshing the Skeleton Fort experience.

Rare has also teased that season 18, which will come to Sea of Thieves later in the year, will have a focus on Devil’s Roar, and the gameplay will revolve around boosting the role Emissaries play in the title.

Sea of Thieves is available on PC, PS5, Xbox One and Xbox Series X/S.

“Join core crew members for the first ever Sea of Thieves Community Direct, where they’ll talk about upcoming Seasons, big Insider Programme changes and a much-requested feature that’s recently been ticking away in development,” wrote the studio in its announcement.

The announcement of this Community Direct comes hot on the heels of Microsoft having recently laid off more than 9,000 of its employees. Along with the lay-offs, several studios under the company also had to cancel many of their projects. Among those affected by this was Rare, which had previously been working on Everwild.

Considering all of the cancellations that have happened under Microsoft recently, Rare likely announced this Community Direct in an effort to ensure its fans that the fate of Sea of Thieves wasn’t tied up with the cancellation of Everwild.

Sea of Thieves was originally released on PC and Xbox One. It eventually made its way on to Xbox Series X/S, and last year, even came to PS5. With the PS5 release, the title started riding a new wave of popularity, becoming the number 2 best-seller in the US when it came out in Early Access on PS5, and even topping download charts.

For more details about the PS5 release of Sea of Thieves, check out our review.

VGC’s Andy Robinson said on the site’s recent podcast that he “heard more recently that pitches are being listened to” for reviving the platformer. The last title was Banjo-Kazooie: Nuts and Bolts, which received mixed reactions for deviating away from what made the series so beloved.

That’s not all, as Robinson has heard of a few high-profile developers who allegedly want to head up a new project. “I heard constantly the name that comes up is Toys for Bob, who really wanna do one. Funnily enough, I heard Moon Studios, as well, was another one who’s really interested.” While the former is known for Crash Bandicoot 4: It’s About Time!, the latter is renowned for the Ori series and is currently working on an action RPG, No Rest for the Wicked.

He noted that there’s “always talk about interest” for a cartoon or movie on Banjo-Kazooie. However, despite “talk for ages” about “outside interest,” Rare was seemingly more keen on making new properties. Gregg Mayles, who was directing the cancelled Everwild and worked at the studio for 35 years before leaving, was a huge proponent of looking forward.

Whether a new Banjo-Kazooie title is greenlit remains to be seen, especially given Microosft’s development troubles thus far. Stay tuned for updates, as always.

After cutting three percent of its workforce worldwide in May this year, a new wave of layoffs has hit the company. The Seattle Times reported roughly 9,100 employees affected across all of Microsoft, with the overall impact on its Gaming Division unknown. Bloomberg did note that King, based in Stockholm, and ZeniMax Media’s European offices were affected (with the former losing about 200 employees). However, at the time, the full scale of the cuts was unknown in the United States.

As time passed, it became clear that this wasn’t just a series of layoffs but an all-out bloodbath. Everwild, Perfect Dark and ZeniMax Online Studios’ next MMO, codenamed Blackbird, have reportedly been cancelled. The Initiative has been closed. Rare will allegedly undergo restructuring and see layoffs. Undead Labs, currently working on State of Decay 3, has reportedly faced layoffs (though how extensive is unknown). Turn 10 Studios saw over 70 layoffs, according to The Verge, effectively reducing its staff by almost 50 percent (which is apparently enough to keep Forza Motorsport going).

At the time of writing, it’s unknown whether ZeniMax Online Studios will see layoffs because the overall handling of the process has been, to put it simply, embarrassing. Bloomberg’s Jason Schreier noted that staff who worked on Blackbird were locked out of their Slack accounts without any warning from HR. Leadership and HR have also yet to confirm their job statuses, though they can still use their official work emails and Microsoft Teams (and no, I won’t make the joke).

The way it’s been handled is unequivocally horrendous, but it’s not just in the United States. King’s London and Berlin offices, alongside their remote workers, have also allegedly been hit, according to MobileGamer.biz. Though they noted how it wasn’t very surprising, the process has still “been handled very poorly.”

Back in the US, not even those working on the Call of Duty franchise are safe. Insider Gaming reported layoffs to Sledgehammer Games and Raven Software, with the actual number yet to be known. And yes, Raven is working on Call of Duty: Black Ops 7 alongside Treyarch. High Moon Studios, which serves as a support studio on Call of Duty: Warzone, has also seen layoffs. Halo Studios is also reportedly seeing layoffs – one alleged employee worked on Halo Infinite for the past four years to turn around, quote, “that burning dumpster of a live service.” There aren’t any reports about South of Midnight developer Compulsion Games, but one former employee recently posted on LinkedIn about seeking a new role, having worked at the studio since June 2024.

You’re probably wondering at this point, “Is that all?” Well, no. According to The Verge, the Xbox user research team has also been “hit hard.” For those unaware, it’s a team that “focuses on ensuring quality across Xbox games, the platform, and developer tools.” Windows Central reports that QA in Activision and Blizzard have also been affected, alongside marketing and sales teams. If that isn’t enough, Xbox’s head of family and child safety is also gone.

If we’re talking about senior positions, ZeniMax Online Studios president Matt Firor is leaving after over 18 years, while sources told VGC that Gregg Mayles and Louise O’Connor will be leaving Rare. Mayles has spent over 35 years at the studio and is best known for Banjo-Kazooie and Sea of Thieves (and was also directing Everwild after the reported 2021 reboot). O’Connor has also been at the studio for quite some time, having worked on Conker’s Bad Fur Day, and is also gone after the cancellation of Everwild.

And I would say, “That’s it for now,” but no one, not even Microsoft since this is their fourth set of layoffs in about 18 months, could possibly know. It’s been, for all intents and purposes, a bloodbath. But you know who thinks all of this is the best decision and the one that will position the brand for continued success? Why, Microsoft Gaming CEO Phil Spencer, of course!

Before news of all these cancellations and layoffs fully circulated, Spencer sent out a note (obtained by Windows Central), stating, “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.” However, in the next paragraph, he admits that all of this is happening, while, “We have more players, games, and gaming hours than ever before. Our platform, hardware, and game roadmap have never looked stronger.” So what gives?

Spencer continues, “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 efforts 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.”

He offered the usual spiel for those let go – “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” (which is one way of saying, “It’s not you, it’s me”). But perhaps the most notable is, “Our momentum is not accidental—it is the result of years of dedicated effort from our teams.” So naturally, the obvious next step is to lay off those workers to thank them for their work thus far. The worst part about the note is how “the specifics of today’s notifications and any organizational shifts will be shared by your team leaders in the coming days.” This seemingly indicates that more layoffs and cancellations are coming.

As annoying as all this is, Xbox Game Studios’ Matt Booty followed with an internal email confirming the cancellation of Perfect Dark and Everwild and the winding down of “several unannounced projects” (which seemingly includes ZeniMax Online’s Blackbird). “These decisions, along with other changes across our teams, reflect a broader effort to adjust priorities and focus resources to set up our teams for greater success within a changing industry landscape,” said Booty. “We did not make these choices lightly, as each project and team represent years of effort, imagination, and commitment.”

However, he then goes on to note that the overall plan remains “unchanged,” which is to “build games that excite our players, continue to grow our biggest franchises, and create new stories, worlds, and characters.” There are apparently over 40 projects in “active development” and “continued momentum” on games launching this Fall (and no, we don’t know of any new titles outside of The Outer Worlds 2). Furthermore, it has a “strong slate” going into the next year.

What is the point of this section other than to inspire confidence among those left that Microsoft isn’t dying anytime soon or perhaps no further cancellations are on the way? Thinking back to the end of Spencer’s note, now might not be the right time to brag about “continued momentum.” Then again, Booty is the one who looked at rumors about Perfect Dark’s troubled development and said, “It’s quite the opposite.” He also called reports of Everwild’s development rebooting in 2021 as “a little extreme” than what really happened. Do I expect any executive in such a position to be candid and admit fault? Well, no, but then again, I also don’t expect to hear about all the wonderful things Xbox has in the works after my colleagues and co-workers lost their jobs.

So, with all that out of the way, Microsoft’s tally for layoffs in 2025 sits at over 15,000 employees thus far. The real question, at least for the time being, is: What hasn’t been cancelled? Apparently, everything from the recent Xbox Games Showcase (conveniently enough) is safe, according to Windows Central. It’s also been suggested that the company’s next-gen console plans “remain unaffected.” You know, the one part of the Gaming Division’s revenues that have seen constant declines. Then again, I don’t know if you can boast about the revenue from content and services too much since Call of Duty and Minecraft (followed by Game Pass) contributed heavily to the same.

Taking a step back, it’s easy to look at all this and simply blame Microsoft. And make no mistake – it really is that easy, considering Spencer and crew have been at the helm for some of the company’s biggest failings. The closure of Tango Gameworks, Arkane Austin, and Alpha Dog Studios. Increasing the price of major first-party games to $80. Declining hardware revenue. Multiple years with no games to offer loyal fans. High-profile disappointments, like Halo Infinite at launch and Redfall.

Depending on who you ask, even releasing first-party titles to PlayStation 5 and Nintendo Switch, which proved financially successful, was viewed as the company admitting defeat in the console wars. Which, going by the numbers, should be a given. You may think that the cancellations of Everwild and Perfect Dark are justified, given years of troubled development.

Yet Microsoft oversaw both studios and dozens of others. When a 2022 report emerged about a toxic work environment at Undead Labs under its new studio head and HR head, leading to numerous departures and stalled development on State of Decay 3, Microsoft was specifically called out for not acting sooner.

In the past, Phil Spencer has admitted that upper management was hands-off, leaving studios to their own machinations – which was the reason (among many) why Redfall shipped in its sorry state. He then claimed that the team did “a better job” helping with Bethesda’s Starfield, but even if you’re a fan of it, there’s no denying the bugs, glitches, crashes, and quality-of-life issues that it shipped with (after delays, at that).

However, if we’re outlining everything that Microsoft has done wrong with the Xbox brand, you could go all the way back to 2013 (and some people have), pointing to Microsoft effectively nailing its own coffin shut with how it presented the Xbox One. Even after backtracking on Kinect, always-online requirements, used-game ownership and a focus on TV media, it was still effectively sent to die against the PS4 later that year. Some may even go back further and blame its focus on Gears of War, Forza, and Halo – the top three, as it were – and the inability to nurture new franchises, which prompted the acquisition of Ninja Theory, Compulsion Games, Playground Games and many more in the years to come.

Whether that acquisition-fueled mayhem and the less-than-stellar returns are to blame or not, this process of acquiring studios and then shuttering them after however many years isn’t all that surprising. Flashback to 2021, when Sarah Bond, then-head of Game Creator Experiences and Ecosystem at Xbox, reflected on shutting down Lionhead Studios in 2016 after acquiring it in 2006. “What did we learn, and how do we not repeat our same mistakes?” Spencer followed up by stating, “You acquire a studio for what they’re great at now, and your job is to help them accelerate how they do what they do, not them accelerate what you do.” Based on everything that’s happened, it seems that leadership at Microsoft Gaming and Xbox Game Studios has a long way to go.

Many players are still wondering why Spencer – and other leadership figures like Matt Booty – are still in charge, given the brand’s failures over the past several years. We’ve heard Xbox president Sarah Bond talking about a new multi-year partnership with AMD across “a portfolio of devices,” including next-generation Xbox consoles, where one of the stated goals was to deliver “immersive gameplay and player experiences enhanced with the power of AI.”

However, Microsoft signed a deal with OpenAI in 2019, though Business Insider reported tensions between the two companies, casting some doubts on whether their partnership can last until 2030. That being said, Microsoft has still invested a whopping $13 billion into it thus far. All that money has to come from somewhere, and unfortunately, we may be seeing the result of that.

Of course, that still doesn’t excuse the current direction of Xbox – whatever that may currently be. Yes, Forza Horizon 5, Indiana Jones and the Great Circle and Sea of Thieves are successful on PlayStation 5. And while I was somewhat optimistic about Microsoft taking a multi-centric approach to offering its games on numerous platforms, I still don’t understand the whole “This is an Xbox” marketing campaign.

Or why the company had to tie up with Meta to release a $500 Meta Quest 3S Xbox Edition in limited supplies when none of its titles supports VR. As great a deal as Game Pass has been for the company, it hasn’t seen anywhere near the level of growth in the past few years as when it first began. The amount that Microsoft is investing in it continues to grow, however, and even if it’s helping many players discover brand-new titles, the argument that it’s effectively cannibalizing first-party sales will never truly go away.

The industry as a whole has faced unprecedented instability since the COVID-19 pandemic ended, with layoffs regularly happening as early as 2023. As perhaps the biggest games publisher in the world, Microsoft is no stranger to mass cuts – look no further than 2014 when it cut 18,000 employees, though that primarily affected the Nokia division. And while it may have a pretty impressive line-up of titles to come, Laura Fryer, one of the founding members of the original Xbox team, recently said it best.

“What is the long-term plan? Where are the new hits? What will make people care about the Xbox 25 years from now?” She noted that with the 25th anniversary of Xbox approaching in 2026, perhaps it’s “the year that the fog will clear and all of us will see the beauty in these latest announcements.” Whether that will be the case or not, the dark cloud currently hanging over Microsoft and its Gaming Division isn’t going away any time soon.

Note: The views expressed in this article are those of the author and do not necessarily represent the views of, and should not be attributed to, GamingBolt as an organization.

“After more than 18 years leading ZeniMax Online Studios, I’ll be stepping away later this month,” wrote Firor in a social media update. “The studio and The Elder Scrolls Online will be in great hands under the direction of new Studio Head, Jo Burba along with Executive Producer, Susan Kath and Game Director, Rich Lambert. Together, this leadership team has spearheaded many of ESO’s biggest ideas and expansions and will continue to make this game something we’re all proud of.”

“While I won’t be working on the game anymore, I will be cheering you on and adding to the thousands of hours I’ve already spent in-game. There are many more stories to be told, adventures to be had, and I know this amazing community will carry that shared legacy and success forwards.”

Along with Firor, veteran members of the development team at Rare are also reportedly leaving the company. According to VGC, one of the most veteran game designers of the studio – Gregg Mayles – is leaving. The departure of Mayles would mark the end of a career spanning more than 3 decades at the studio.

During his time at Rare, Mayles had worked on quite a few games since 1990, with Solar Jetman being the first title he was credited for. Since then, he had worked on several major titles in the studio’s history, including Donkey Kong Country, Banjo-Kazooie, and Viva Pinata, among others.

Along with Mayles, who had been working on Everwild since 2021, executive producer Louise O’Connor is also leaving the company. O’Connor had been working at Rare since 2001 Nintendo 64 title Conker’s Bad Fur Day.

Reports of Everwild’s cancellation came about yesterday. An internal email by Xbox’s Matt Booty (obtained by Windows Central) confirmed the same along with announcing that Microsoft is shutting down The Initiative.

“We have made the decision to stop development of Perfect Dark and Everwild as well as wind down several unannounced projects across our portfolio,” wrote Booty. “As part of this, we are closing one of our studios, The Initiative. These decisions, along with other changes across our teams, reflect a broader effort to adjust priorities and focus resources to set up our teams for greater success within a changing industry landscape.

“We did not make these choices lightly, as each project and team represent years of effort, imagination, and commitment.”

Microsoft has also been going through some major lay-offs. Check out details behind the tensions at Halo Studios in light of the lay-offs here.

Announced in November 2019, Everwild has seen departures and direction shifts since its announcement. In 2021, LinkedIn profiles for current and former developers indicated that the project had already been in development for over five years.

Reports would soon emerge of a reboot to development with the team allegedly struggling to “define a clear direction” (which then-Xbox Game Studios head Matt Booty called “a little extreme”). Following open positions and rumors that it was more like Viva Pinata, Microsoft Gaming CEO Phil Spencer revealed earlier this year that it was making progress.

There was even hope that it could appear at the recent Xbox Games Showcase. Stay tuned for more details on Rare’s restructuring and what this could mean for Sea of Thieves.