Microsoft’s recent round of layoffs has sent shockwaves through the gaming industry, with the Xbox division bearing a significant brunt of the cuts. Approximately 9,000 jobs were eliminated, marking one of the company’s largest workforce reductions in years and the fourth major layoff to hit Xbox in the past 18 months. Several studios and high-profile projects have been shuttered in the process. The Initiative, the studio behind the much-anticipated Perfect Dark reboot, has been closed and the game cancelled. Rare’s long-gestating fantasy project Everwild has also been scrapped, alongside ZeniMax Online Studios’ MMORPG known as Project Blackbird. Major teams across the portfolio—including Turn 10, Raven Software, Sledgehammer, High Moon, Halo Studios, Blizzard, and King—have seen significant staff reductions. Despite the setbacks, Xbox’s Matt Booty confirmed that more than 40 games remain in development, signaling that the platform still has a robust release pipeline.
Among the titles still expected to release later in 2025 are Grounded 2, The Outer Worlds 2, Tony Hawk’s Pro Skater 3 + 4, Gears of War: Reloaded, Ninja Gaiden 4, Keeper, and Call of Duty: Black Ops 7. Looking ahead to 2026, fans can anticipate Gears of War: E-Day, Playground Games’ new Fable, Forza Horizon 6, and potentially a Halo: Combat Evolved remake. Further out, into 2027, Xbox is planning major releases such as Marvel’s Blade, Kojima Productions’ mysterious OD, and State of Decay 3. While the wave of layoffs and cancellations has dramatically reshaped Xbox’s internal landscape, the company’s forward-looking slate still reflects a commitment to flagship franchises and ambitious new IP. The road ahead may be leaner, but the lineup through 2027 suggests that Xbox is determined to remain a strong contender in the gaming market despite its recent turbulence.
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