Rare’s ambitious project, Everwild, has officially been cancelled. This decision arrives amid a significant wave of layoffs impacting microsoft and its gaming division, Xbox. The cancellation of the long-awaited title from the acclaimed British studio Rare, coupled with the departure of key creative leadership, signals a challenging period for the developer and broader changes within Microsoft’s strategic direction.
Microsoft Confirms Everwild Cancellation
Microsoft has confirmed the end of development for Everwild. This news was part of a broader announcement from Microsoft Studios. The company also confirmed the closure of The Initiative studio, which was working on a new Perfect Dark game.
Matt Booty, head of Microsoft Studios, addressed the situation directly. He stated that the company made the decision to stop development on both Perfect Dark and Everwild. Several other unannounced projects are also being wound down across their portfolio. Booty framed these actions as reflecting a broader effort. The goal is to adjust priorities and focus resources. This aims to set up teams for greater success within a changing industry landscape. He emphasized that these choices were not made lightly. Each project and team represented years of effort and commitment.
Broader Context: Significant Microsoft and Xbox Layoffs
The cancellation of Everwild is closely tied to substantial workforce reductions across Microsoft. Reports indicate that the company is laying off approximately 4% of its total employees. This could affect around 9,100 staff globally. The gaming segment, particularly the Xbox division, is heavily impacted by these cuts.
Xbox chief Phil Spencer communicated the necessity of these actions to staff. He explained that the cuts are designed to end or decrease work in certain business areas. They also follow Microsoft’s lead in removing management layers. This is intended to increase agility and effectiveness within the organization. A Microsoft spokesperson added that these organizational changes are necessary. They aim to position the company and its teams for success in a dynamic marketplace. Some reports link these layoffs to Microsoft’s strategic pivot towards increased investment in artificial intelligence.
Wide-Reaching Impact Across Xbox Studios
The layoffs are not confined to just Rare. Numerous studios and teams under the Microsoft umbrella are facing reductions.
Activision Blizzard subsidiaries are affected, including King (Candy Crush developer), which is laying off roughly 10% of its staff (around 200 employees).
ZeniMax operations in Europe and marketing teams in London and Maryland are undergoing layoffs.
Call of Duty developers Sledgehammer Games, Raven Software, and support studio High Moon Studios have seen layoffs.
Blizzard Entertainment is reducing staff across various teams. This includes those working on Warcraft Rumble. Development on that title is being scaled down to a live ops-only phase.
ZeniMax Online Studios’ long-in-development MMORPG, codenamed Blackbird, has also been cancelled.
Forza Motorsport developer Turn 10 has reportedly seen significant cuts.
Developers like Compulsion Games (South of Midnight) and Undead Labs (State of Decay 3) are also affected.
The quality assurance team at Mojang (Minecraft) and the Xbox user research team have experienced substantial layoffs.
This extensive restructuring signals a significant shift in resource allocation and project focus within the Microsoft Gaming division. While some reports confirm that all games showcased during the recent Xbox Games Showcase remain safe, the scale of the cuts highlights a challenging moment for developers across the company’s portfolio.
Rare Veterans Depart Following Everwild’s Cancellation
The impact of Everwild‘s cancellation extends to Rare’s leadership. Two prominent veterans are reportedly leaving the studio following the news. Gregg Mayles, one of Rare’s most experienced and influential game designers, will depart after more than 35 years with the company. Sources close to the studio confirmed his planned exit.
Mayles had taken charge of the Everwild project’s direction after its team was restructured in 2021. His departure marks the potential end of an era for Rare. Only a small group of employees remain from the studio’s pre-Microsoft acquisition days. Mayles boasts a remarkable legacy at Rare. He has worked on nearly 30 games since his credited debut in 1990 with Solar Jetman. He famously directed acclaimed titles like Donkey Kong Country, Banjo-Kazooie, and Viva Pinata. More recently, he served as Creative Director for the successful live-service game Sea of Thieves.
Executive producer Louise O’Connor is also expected to leave Rare. O’Connor is another long-time veteran of the studio. Her first project was the classic Conker’s Bad Fur Day for the Nintendo 64. These high-profile departures underscore the deep impact of the Everwild cancellation within the Rare studio itself.
Everwild’s Long and Troubled Development History
Everwild had a notably lengthy development cycle. Including its initial prototype phase, the project had been in development for over a decade. Rare first publicly announced the game in November 2019 with a debut trailer. Another trailer followed in July 2020. However, public updates on the game became increasingly scarce in the subsequent years.
Anonymous developers familiar with the project’s status indicated ongoing struggles. They reportedly found it difficult to nail down a clear creative direction for the title. These issues persisted even after the project underwent a significant reboot around 2021. It was during this reboot that veteran designer Gregg Mayles was reportedly put in charge to steer the direction.
Despite the lack of visible progress, Xbox head Phil Spencer had insisted earlier in the year that development was still making headway. He spoke about giving teams the necessary time to create their vision. Xbox Game Studios boss Matt Booty had also previously commented on Everwild. He said the team wanted to ensure they had “something special” before showcasing the game publicly again. The eventual cancellation confirms that those development challenges ultimately proved insurmountable.
Rare’s Legacy Under Microsoft
Rare was founded in 1985 and stands as one of the United Kingdom’s most historic and influential game developers. The studio is celebrated for creating iconic franchises like Battletoads, Donkey Kong Country, GoldenEye 007, and Banjo-Kazooie before being acquired by Microsoft in 2002.
Under the Xbox banner, Rare continued to develop diverse titles. These include Kameo: Elements of Power, Viva Piñata, and the Kinect Sports series. Their most recent major success is the popular online pirate adventure, Sea of Thieves, which launched in 2018 and continues to receive significant updates and maintain a large player base. Despite the success of Sea of Thieves and Rare’s storied past, employees there are still reportedly facing job losses as part of the broader Microsoft restructuring.
Frequently Asked Questions
Why was the game Everwild cancelled?
Everwild was cancelled due to a combination of factors. According to sources, the game struggled with a clear creative direction throughout its long development cycle, which spanned over a decade including prototypes. Even after a significant reboot, direction issues persisted. Microsoft’s official statement also frames the cancellation as part of a broader effort to adjust priorities and focus resources within a changing industry landscape, linked to company-wide layoffs and strategic shifts, potentially towards areas like AI.
Which long-time Rare developers are leaving after Everwild was cancelled?
Two key Rare veterans are reportedly departing the studio following the cancellation of Everwild. Gregg Mayles, a highly influential designer with over 35 years at Rare who directed the Everwild project after its 2021 reboot, is leaving. Executive producer Louise O’Connor, known for her work on titles like Conker’s Bad Fur Day, is also expected to depart. These departures highlight the significant impact of the cancellation on Rare’s leadership.
Are the Everwild cancellation and Rare departures part of bigger changes at Microsoft and Xbox?
Yes, the cancellation of Everwild and the departures of developers like Gregg Mayles and Louise O’Connor are part of much larger, ongoing changes at Microsoft and its Xbox division. Microsoft is undertaking significant layoffs affecting approximately 9,100 employees across the company globally, with a heavy impact on Xbox Game Studios. This restructuring is aimed at adjusting priorities, focusing resources, and increasing organizational agility in a changing market, following a pattern of layoffs over the past year.
The Path Forward
The cancellation of Everwild and the associated layoffs and departures represent a difficult moment for Rare and the affected individuals across Microsoft Gaming. While Everwild‘s development challenges were reportedly a significant factor, the decision is also positioned within Microsoft’s larger corporate strategy of restructuring and resource reallocation. The focus for Rare will now likely shift entirely to supporting and expanding Sea of Thieves and potentially pursuing new, yet-to-be-announced projects within the new strategic framework. For the broader Xbox division, the path forward involves focusing on the titles currently in development and navigating a changing industry landscape marked by intense competition and evolving technological priorities.
