By Dashiell Wood
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Phil Spencer somehow thinks that Xbox has ‘never looked stronger’ as multiple games are canceled
Dashiell Wood
3 July 2025
Perfect Dark developer The Initiative has been shuttered
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(Image credit: Phil Spencer / Microsoft)
More layoffs are underway at Xbox
Perfect Dark developer The Initiative has been shuttered, on top of other game cancelations and cuts
Microsoft Gaming CEO Phil Spencer said Xbox has “never looked stronger” in an email to staff
Microsoft Gaming CEO Phil Spencer claimed that the Xbox “platform, hardware, and game roadmap have never looked stronger” amid a studio closures, game cancelations, and widespread layoffs.
As reported by Bloomberg, Microsoft’s gaming division has been hit by significant layoffs. This includes job cuts at mobile game maker King, ZeniMax, Rare, Halo Studios, and Turn 10 Studios.
The upcoming Rare game Everwild has seemingly been culled, as has an unannounced game from The Elder Scrolls Online developer ZeniMax Online Studios. The planned Perfect Dark reboot has been canned too, with the studio behind it, The Initiative, shut down.
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Xbox hardware is ‘dead’ according to a former Microsoft producer – and it’s hard to disagree
Build A Rocket Boy confirms it has begun the redundancy process following MindsEye’s disastrous launch
Xbox boss Phil Spencer confirms Microsoft will support the Nintendo Switch 2: ‘I’m really a big believer in what Nintendo means for this industry and us continuing to support them’
In an email sent to staff, Spencer said that these decisions were intended “to position gaming for enduring success and allow us to focus on strategic growth areas” plus “increase agility and effectiveness” overall.
“I recognize that these changes come at a time when we have more players, games, and gaming hours than ever before. Our platform, hardware, and game roadmap have never looked stronger. The success we’re seeing currently is based on tough decisions we’ve made previously,” he continued.
These “tough decisions” presumably include previous studio closures and layoffs, such as the shuttering Arkane Austin, Alpha Dog Games, Roundhouse Games, and Tango Gameworks last year.
“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. 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.”
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Dashiell Wood
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Hardware Writer
Dash is a technology journalist who covers gaming hardware at TechRadar. Before joining the TechRadar team, he was writing gaming articles for some of the UK’s biggest magazines including PLAY, Edge, PC Gamer, and SFX. Now, when he’s not getting his greasy little mitts on the newest hardware or gaming gadget, he can be found listening to J-pop or feverishly devouring the latest Nintendo Switch otome.
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Xbox hardware is ‘dead’ according to a former Microsoft producer – and it’s hard to disagree
Build A Rocket Boy confirms it has begun the redundancy process following MindsEye’s disastrous launch
Xbox boss Phil Spencer confirms Microsoft will support the Nintendo Switch 2: ‘I’m really a big believer in what Nintendo means for this industry and us continuing to support them’
Microsoft reportedly set to cut thousands of jobs, with sales roles particularly at risk
Up to 7,000 Microsoft workers could be made redundant in the biggest drop in two years
Xbox handheld reportedly delayed so Microsoft can focus on making Windows handhelds compete with SteamOS
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