Over 40 Games Still In Development At Xbox Despite Massive Layoffs And Cancellations

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Almost Every Title From This Year's Showcase Has Survived!

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  • Xbox Games Studio head says despite cancellations, over 40 games are still in the works.
  • This comes after Xbox cancelled the highly anticipated Perfect Dark and Everwild.
  • They’ve also closed The Initiative, and other studios have also been hit with layoffs.

Following Microsoft’s decision to cut over 9,000 jobs, affecting multiple Xbox departments and studios as well, things aren’t looking too bright. However, the company has reassured fans that most of its announced projects are still safe. 

Xbox Games Studio head says that the overall portfolio of strategy is still unchanged, and despite the layoffs and multiple cancellations, there are still over 40 games in development and are planned to release as it was intended. 

Why it matters: This marks the second big wave of layoffs at Microsoft since the Activision Blizzard merger, but this time, while many jobs have been lost, it seems that most major projects are still on the line. 

Perfect Dark
Despite many cancellations, over 40 Xbox games are still in development

According to an internal email sent by Matt Booty, Xbox has decided to cancel Perfect Dark and Everwild and some other unannounced projects. In addition, The Initiative has also been shuttered, the studio behind Perfect Dark. 

We have more than 40 projects in active development, continued momentum on titles shipping this fall, and a strong slate headed into 2026.

– Matt Booty

Booty says that while these decisions were tough, they were necessary to reflect a broader effort to adjust priorities and focus resources to set up their teams for greater success within a changing industry landscape. 

Phil Spencer Xbox
This is the second big round of layoffs at Xbox since the Activision deal

However, over 40 games are still in development at Xbox even after the cancellations. Notably, almost every game present at this year’s Xbox Showcase event has survived the ordeal. Nonetheless, many fans were looking forward to Perfect Dark. 

Despite everything, this is tough to see the route the industry is headed towards. The email does say it will try to adjust the laid-off employees in other departments or help in any other way, but that won’t make the situation any easier. 

What are your thoughts on Xbox still having over 40 games in development despite the cancellations? Let us know your opinions in the comments or join the discussion at the official Tech4Gamers Forum.

 

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