Microsoft Announces Layoffs Impacting Xbox Studios
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Microsoft Announces Layoffs Impacting Xbox Studios

Summary

Microsoft announced layoffs on July 2nd that affected the company’s Xbox employees.

On July 2nd, Microsoft announced layoffs affecting up to 9,000 employees, including significant impacts on the company’s Xbox studios.

Microsoft canceled the game Perfect Dark from The Initiative and closed the studio. Rare’s Everwild, announced in 2019, was also canceled. Additionally, Forza Motorsport developer Turn 10 Studios will see a reduction of more than 70 employees.

Statement from Microsoft Gaming CEO

"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," Microsoft Gaming CEO Phil Spencer stated in a memo to employees. "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."

Leadership Rumors

A rumor suggested that Phil Spencer was planning to retire after Microsoft launched its next generation of Xbox. However, the company stated that Spencer is not planning to retire as the chief of Xbox in the near future.

Fact-checking

Fact-check the facts of the article using external sources and databases.

Confirmed

On July 2nd, Microsoft announced layoffs affecting as many as 9,000 employees.

Confirmed

The layoffs had an impact on the company’s Xbox studios.

Confirmed

Microsoft canceled Perfect Dark from The Initiative and closed the studio.

Confirmed

Rare’s Everwild, announced in 2019, was canceled, too.

Confirmed

Forza Motorsport developer Turn 10 Studios will lose more than 70 employees.

Confirmed

Phil Spencer said, '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.'

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Unverified

A rumor was circulating that Spencer was planning to retire after Microsoft launched its next generation of Xbox.

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Unverified

The company tells The Verge that Spencer isn’t retiring as the chief of Xbox 'anytime soon.'

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