Xbox’s Everwild Cancellation Amid Layoffs: A Closer Look

In a surprising turn of events, Rare, the developer behind the popular game Sea of Thieves, has reportedly halted the development of its long-anticipated title Everwild. The decision comes amidst widespread layoffs at Xbox, part of Microsoft’s broader workforce reduction strategy. The game, which has been in development since 2014, was highly anticipated for its unique, nature-themed adventure setting.

The announcement aligns with recent reports that Microsoft has laid off approximately 9,100 employees across various divisions, including game developers at King and Zenimax. The cancellation of Everwild marks a significant shift for Rare, a studio known for its creative endeavors and storied past.

Background on Everwild’s Development

Initially unveiled at the XO19 presentation in November 2019, Everwild was shrouded in mystery, captivating audiences with its stunning visuals and promise of a unique gaming experience. Despite being rebooted in 2021, the project seemed to be progressing well, according to reports in 2024. However, the recent wave of layoffs has reportedly led to the game’s cancellation, as first reported by VGC.

Rare, which was acquired by Microsoft in 2002, has faced challenges in maintaining its once-stellar reputation. The studio, renowned for hits during its Nintendo era, has struggled with several project cancellations under Microsoft’s ownership.

Impact on Rare and Its Employees

The cancellation of Everwild raises concerns about the future of Rare’s employees who were dedicated to the project. Although no official layoffs at Rare have been confirmed, the uncertainty looms large. Xbox boss Phil Spencer had previously expressed optimism about the project, stating,

“We’ve been able to give those teams time in what they’re doing which is good and still have a portfolio like we have. It’s like a dream that Matt (Booty) and I have had for a long time, so it’s finally good to be there. We can give those teams time.”

Despite these assurances, the abrupt halt in development suggests a shift in priorities at Xbox, likely influenced by the broader economic pressures and strategic realignments within Microsoft.

Historical Context and Industry Reactions

Rare’s journey under Microsoft has been a tumultuous one. While the studio achieved success with Sea of Thieves, which continues to receive updates and maintain a dedicated player base, other projects have not fared as well. The cancellation of Everwild is reminiscent of previous setbacks, highlighting the challenges of sustaining creativity and innovation in a corporate environment.

Industry experts suggest that the decision to cancel Everwild may reflect a broader trend of consolidation and cost-cutting within the gaming industry. As companies face increasing pressure to deliver profitable results, projects that do not align with immediate financial goals may be more vulnerable to cancellation.

Looking Forward: The Future of Rare and Xbox

The future of Rare remains uncertain as the studio navigates these challenging times. While Sea of Thieves continues to thrive, there is little information about other projects in development. The cancellation of Everwild underscores the need for Rare to adapt and innovate in an industry that is rapidly evolving.

For Xbox, the layoffs and project cancellations may signal a strategic shift as the company seeks to streamline its operations and focus on core priorities. As the gaming landscape continues to change, both Rare and Xbox will need to reassess their strategies to remain competitive and relevant.

The gaming community will undoubtedly watch closely to see how these developments unfold and what they mean for the future of gaming at Xbox and Rare. As the industry grapples with these challenges, the resilience and creativity of developers will be crucial in shaping the next chapter of gaming innovation.

About The Author