Microsoft has reportedly axed Rare's long-in-development title Everwild as part of widespread layoffs hitting Xbox divisions today. IGN obtained an internal memo from Xbox chief Phil Spencer detailing the restructuring, with over 9,000 Microsoft employees potentially affected – including significant cuts at Candy Crush studio King and Bethesda.
A Strategic Restructuring for Growth
While Spencer's memo avoided specific project cancellations, VGC first reported Everwild's demise – a detail IGN sources have now confirmed. The Xbox leader framed the cuts as necessary for focusing on strategic growth areas and improving operational efficiency.
Today's workforce reductions come as our gaming business demonstrates record engagement across players, games and playtime," Spencer wrote. "These difficult decisions are about prioritizing our strongest opportunities to ensure long-term sustainability while delivering on company expectations.
Support for Impacted Employees
The company has established transition assistance including severance packages, healthcare continuation, and priority consideration for other Microsoft Gaming positions. Spencer emphasized these cuts reflect business priorities rather than performance:
"These decisions are not a reflection of the talent, creativity and dedication of those affected. Our momentum results directly from their years of exceptional work," the memo stated.
The Fate of Rare's Everwild
Everwild's cancellation follows years of developmental uncertainty since its 2019 announcement. Creative director Simon Woodroffe departed in 2020, with Rare veteran Gregg Mayles (Sea of Thieves, Banjo-Kazooie) taking over.
Though Spencer expressed enthusiasm for Everwild as recently as February 2024 during a Rare studio visit, the project had reportedly undergone multiple reboots. Early concepts suggested a third-person adventure with god game elements set in a "natural and magical world."
This marks Microsoft's fourth major gaming division restructuring since acquiring Activision Blizzard in 2023. Previous cuts included closures of Arkane Austin and Tango Gameworks, totaling over 8,500 layoffs before today's announcement.
Spencer previously told IGN about the difficult balance between creative ambition and business realities: "Running a sustainable business means making hard decisions – ones I don't love but somebody needs to make."
The restructuring occurs alongside Microsoft's preparations for next-gen Xbox hardware and a strong gamescom presence, signaling continued investment in core gaming initiatives despite the cuts.
