Microsoft has reportedly axed the long-in-development Rare title Everwild as part of widespread Xbox layoffs announced today.
IGN obtained an internal memo from Xbox chief Phil Spencer detailing the restructuring. Sources indicate these cuts may affect over 9,000 Microsoft employees, with significant impacts at Candy Crush studio King and Bethesda. Microsoft declined to comment when contacted by IGN.
Spencer's company-wide message outlined strategic shifts while avoiding specific project details:
"To position Gaming for long-term success, we're streamlining operations by reducing work in certain areas and eliminating management layers to improve agility. Team leaders will share specific organizational changes in coming days."
The Xbox boss emphasized the difficult nature of these decisions while maintaining optimism about Microsoft's gaming future:
"We're making tough choices now to ensure our future success. This means focusing on our strongest opportunities while continuing to deliver exceptional experiences for players worldwide."
Microsoft is offering severance packages including:
(View 70 gaming franchises now under Xbox)
February 2024 comments from Spencer had suggested optimism about the project after his Rare studio visit:
"It's exciting to see Rare's progress on Everwild. We're committed to giving our teams the time they need to create exceptional games."
The project faced speculation following multiple reboots and the 2020 departure of creative director Simon Woodroffe. Rare veteran Gregg Mayles (Banjo-Kazooie, Sea of Thieves) later assumed creative leadership.
Early reports described a third-person adventure with god-game mechanics set in a mystical natural world. Rare's 2020 trailer promised "a unique and unforgettable experience," but the extended development cycle leaves the final vision uncertain.
This marks Microsoft's fourth major gaming workforce reduction since its $69 billion Activision Blizzard acquisition:
Spencer previously told IGN in June 2024:
"Running a sustainable business requires making difficult decisions - choices I don't take lightly, but ones that must be made."
These cuts coincide with Microsoft preparing next-generation Xbox hardware and its gamescom showcase.
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