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{{News
|seo_title=Xbox Layoffs Continue
|seo_keywords=Xbox
|image=Microsoft.png
|tags=Xbox
|date=2025-07-03T11:06:46.000Z
|sources={{NewsSource
|source=Games Industry
|url=https://www.gamesindustry.biz/xbox-layoffs-july-2025
|article=News/Xbox Layoffs Continue
}}
|author=Andura
|category=Business
|content=Microsoft’s gaming division, several high-profile cancellations and layoffs have been announced. Among the most notable shifts is the cessation of updates for Warcraft Rumble, the mobile game developed by Blizzard under [[Companies/Microsoft|Microsoft]] Gaming. The game will transition into a "live-ops only" phase, with no new content planned for the future. This move follows a pattern set by other games, such as Heroes of the Storm and StarCraft 2, which similarly moved away from active development.

The announcement was made in an internal email by Johanna Faries, president of Blizzard, which was shared by Aftermath. In the communication, Faries explained that the game’s transition is a necessary adjustment to align with broader changes in the company’s gaming priorities.

Layoffs Across Microsoft’s Gaming Teams
The recent cuts have significantly impacted teams within Xbox, with notable layoffs hitting the user research department. Among those affected was Mike Mongeau, head of product for family and child safety at Xbox. These staffing reductions come as part of a larger effort to streamline operations within Microsoft Gaming.

In a separate development, Phil Spencer, head of Microsoft Gaming, was the subject of widespread rumors about his potential retirement. However, those rumors were promptly dispelled by Frank X. Shaw, Microsoft’s communications lead, who addressed the claims on X (formerly Twitter). Kari Perez, head of Xbox communications, confirmed  that Spencer has no plans to step down in the near future, asserting:

"Phil is not retiring anytime soon."

'''More:'''[[News/Ubisoft Halifax to Unionise|Ubisoft Halifax to Unionise]]

The Initiative Closed, Perfect Dark Reboot Cancelled
In another significant shift, Microsoft has reportedly decided to shut down The Initiative, the studio behind the highly anticipated Perfect Dark reboot, which was officially revealed last June. This news was first reported by Windows Central and later corroborated by Bloomberg’s Jason Schreier. An internal email from Matt Booty, head of Xbox Game Studios, confirmed the studio’s closure and the cancellation of both the Perfect Dark and Everwild projects.

In the email, Booty explained that the decision was part of a larger effort to refocus Microsoft Gaming’s priorities in light of changing industry dynamics:

“We have made the decision to stop development of Perfect Dark and Everwild as well as wind down several unannounced projects across our portfolio. These decisions, along with other changes across our teams, reflect a broader effort to adjust priorities and focus resources to set up our teams for greater success within a changing industry landscape. We did not make these choices lightly, as each project and team represent years of effort, imagination, and commitment.”
}}