Sad news for those waiting for UK-based game company Rare’s comeback: its big game isn’t going to happen.

Rare’s long-in-development title Everwild is cancelled, as the company is affected by Xbox and Microsoft Gaming’s mass layoffs. The layoffs are due to the parent company’s broader restructuring overall. It remains to be seen if this will affect Sea of Thieves in the long run, which has been maintained by Rare since its launch in 2018.

The game has been in development for 10 years, with anonymous developers telling Video Games Chronicle that the company struggled to nail down a clear direction for the title. This is in spite of the reboot of the project that allegedly occured in 2021 under veteran designer Gregg Mayles (Donkey Kong Country, Banjo-Kazooie, Viva Pinata).

Everwild was first announced back in late 2019.

Microsoft Lays Off Thousands, Including Xbox and Microsoft Gaming

The layoffs over at Microsoft (via Bloomberg) has not only affected Microsoft Gaming, but companies under it.

-Activision subsidiary King (Candy Crush) will cut 200 jobs.
-ZeniMax Media will also face job cuts.
-Raven Software (under Activision Blizzard) has also suffered a number of job cuts.
-Turn 10 Studios (Forza Motorsports series) is also significantly affected, with reports stating that they had to lay off 50% of its workforce.
-High Moon Studios has been affected by the Xbox cuts.
-Sledgehammer Games has faced layoffs as part of the wider cuts at Microsoft.
-Halo Studios is affected.
-Blizzard is affected; 100 jobs were cut while support for WarCraft Rumble is halted.
-Romero Games, the studio headed up by John and Brenda Romero, has announced that an unspecified publisher has canceled funding for its new game (obviously Microsoft).

This move marks the fourth massive layoffs at Microsoft Gaming in the past 18 months. Here is the following note from Microsoft Gaming CEO Phil Spencer sent to the staff today:

Today we are sharing decisions that will impact colleagues across our organization. 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. Out of respect for those impacted today, the specifics of today’s notifications and any organizational shifts will be shared by your team leaders in the coming days.

I recognize that these changes come at a time when we have more players, games, and gaming hours than ever before. Our platform, hardware, and game roadmap have never looked stronger. 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 effort 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.

Prioritizing our opportunities is essential, but that does not lessen the significance of this moment. Simply put, 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. Our momentum is not accidental—it is the result of years of dedicated effort from our teams.

HR is working directly with impacted employees to provide severance plan benefits (aligned with local laws), including pay, healthcare coverage, and job placement resources to support their transition. Employees whose roles were eliminated are encouraged to explore open positions across Microsoft Gaming, where their applications will be given priority review.

Thank you to everyone who has shaped our culture, our products, and our community. We will move forward with deep appreciation and respect for all who have contributed to this journey.

—Phil