Rare Everwild has been reportedly cancelled, Microsoft layoffs across Xbox
Blog Andrew Joseph 02 Jul , 2025 0
Microsoft has reportedly canceled the long-developed rare game Everwild, as Layoffs confirmed today sweeps in Xbox.
IGN reports cutsrevealing a memo sent by Xbox Boss Phil Spencer to staff and was reviewed by IGN. More than 9,000 employees at Microsoft could be hit, with Candy Crush Developer King and Bethesda both under major attacks, the report shows.
VGC Everwild news first reported, and IGN sources confirmed the news. IGN has asked Microsoft to comment.
In the memo, Spencer failed to confirm the specifics, telling employees: “In the coming days, your team leaders will share any organization’s transformation.”
The following information from Phil Spencer has been shared with all gaming teams today:
Today, we are sharing decisions that will impact colleagues in our organization. To position the game for sustained success and to focus on strategic growth areas, we will end or reduce work in certain areas of the business and follow Microsoft's leadership in removing management to improve agility and effectiveness. Out of respect for the people who are impacting today, your team leaders will share details of today’s notifications and any organizational transformation in the coming days.
I realize that these changes are when we have more players, games and game time than ever before. Our platform, hardware and gaming roadmap never looks more powerful. The success we are seeing is based on the difficult decisions we have made before. Now we have to choose the option to continue to succeed in the coming years, and a key part of this strategy is to prioritize the discipline that best opportunities. We will protect what is thriving and focus on areas with the greatest potential while meeting the company’s expectations of our business. This centralized approach means we can provide outstanding games and experience to generations.
Prioritizing our opportunities is essential, but that doesn’t reduce the importance of this moment. In short, we wouldn’t be where we are today without the time, energy and creativity of the person whose characters are affected. These decisions do not reflect the talent, creativity, and dedication of the people involved. Our momentum is not accidental – it is the result of years of hard work from our team.
HR works directly with affected employees to provide severance program benefits (aligned with local laws), including compensation, health insurance and job placement resources to support their transition. Employees who eliminate roles are encouraged to explore public positions in Microsoft games, where their applications will be reviewed first.
Thank you to all the people who shaped our culture, our products and our communities. We will deeply appreciate and respect all those who have contributed to this journey.
Phil
February, Spencer releases updates to Everwild Since its announcement in 2019, unshared has been recurring on various Xbox Rivestreams.
In an interview ShaboSpencer listed Everwild as one of the unappeared games he was excited about, adding that he recently visited Rare, which runs the live service Pirate Adventure game to see Everwild and the progress the developers have made.
“Yes, the decayed state is just one of my favorite franchises, so one person stays on the board. I do think the work Double Fine is doing and the way Tim (Schafer) works and the work of another team. I would say, because I’ve seen it very rarely lately.
Spencer said Microsoft had been able to provide time for developers of these games (attenuation status, the next one from double fines and Everwild) while still having a release schedule (obviously, obviously backed up through acquisitions of Bethesda and Activision Blizzard).
“We can give those teams time,” Spencer said. “Next week, I'm going to be in Vancouver with the Alliance (Gears of War Developer), how fun that is that?”
Everwild faces attention in the restart report and the exit of 2020 Creative Director Simon Woodroffe. Rare is the director's chairman, senior designer Gregg Mayles, who worked at Donkey Kong Country, Banjo-Kazooie, Viva Pinata and Thieves Sea of Thieves.
What is Everwilds? Reports suggest that this is a third-person adventure game with the God game elements, but it may have changed considering how long it is in development. The last Everwilds trailer released in July 2020 comes with the following description: “Everwild is a rare brand new IP. A unique and memorable experience in the world of nature and magic.”
Microsoft has made substantial cuts to its gaming business since its $69 billion acquisition of Activision Blizzard. It fired 1,900 employees in January 2024and then cut further after a few months When it shuts down Red developer Arkane Austin and Hi-Fi Rush developer Tango Gameworks. September 2024, Microsoft lays off 650 employees from its gaming business. In May this year, Microsoft lays off 6,000 employeesaccounting for 3% of its entire workforce. Today's layoffs are the fourth time in Microsoft's gaming business in 18 months.
Talk to IGN in June In 2024, Xbox owner Phil Spencer said: “I have to run a sustainable business within the company and grow it means sometimes I have to make tough decisions and frankly, it’s not a decision I like, it’s a decision that needs to be made.”
Cuts follow Microsoft confirms it plans to release the next-generation Xbox consoleand has a strong influence on the video game show Compan Comcom.
Wesley is IGN's news director. Find him on Twitter via @wyp100. You can reach Wesley via [email protected] or secretly visit [email protected].