The news was initially confirmed in a statement signed by Brenda Romero and posted on X. “Last night, we learned that our publisher has canceled funding for our game along with several other unannounced projects at other studios,

Microsoft announced sweeping layoffs affecting as many as 9,000 employees, and they had a big impact on the company’s Xbox studios. Microsoft cancelled Perfect Dark from The Initiative and closed the studio.

Microsoft's layoffs have had a devastating effect on Xbox, Bethesda, and Activision Blizzard — here's everything we know so far, including project cancellations and more

Microsoft has reportedly cancelled Everwild, an in-development game from UK-based Sea of Thieves developer Rare, and potentially other projects amid a round of layoffs that will see the company lose upwards of 9000 employees.

Microsoft has confirmed that it will lay-off as many as 9,000 workers, in the tech giant's latest wave of job cuts this year. The company said several divisions would be affected without specifying which ones but reports suggest that its Xbox video gaming unit will be hit.

An Xbox spokesperson declined to confirm how many people were impacted, but the cuts were widespread and significant. Subsidiaries across the gaming organization were told that they would be affected by the layoffs.