Legendary UK Developer’s Future Uncertain: What’s Next for Everwild?

Following Phil’s communication, I’d like to provide additional insight into the recent adjustments within our Studios division. We have decided to cease development on the games Perfect Dark and Everwild, and we are also discontinuing several projects that had not yet been announced. Additionally, we will be shutting down one of our development studios, The Initiative. These actions, coupled with other changes within our teams, are part of a larger strategy to realign our priorities and focus our resources, positioning our teams for enhanced success in an evolving market. These decisions were not made lightly, as they affect projects and teams that have invested years of hard work, creativity, and dedication.

Despite these changes, our core strategy for our portfolio remains consistent: we aim to develop games that captivate our players, expand our most successful franchises, and forge new narratives, universes, and characters. Currently, we have over 40 projects underway, we continue to see strong progress in games set to launch this fall, and we have a robust lineup planned through 2026.

For those team members directly impacted by these changes, we are collaboratively working with HR and studio leadership to offer support. This includes severance packages, assistance with career transitions, and, where feasible, the opportunity to apply for other positions within our teams.

To all our studio team members: thank you. Your continuous creativity and adaptability are fundamental to our identity. I am confident in the strength of our teams and the new direction we are embracing for the future.

– Matt

ORIGINAL STORY: Microsoft has reportedly ended the development of the long-awaited Rare game, Everwild, amid widespread layoffs today affecting the Xbox division.

In the message, Spencer did not provide specific details, informing staff that “any organizational changes will be communicated by your team leaders in the upcoming days.”

The following announcement from Phil Spencer was distributed to all gaming employees today:

Today’s announcements will impact many within our organization. To ensure Gaming’s long-term success and focus on strategic growth areas, we are terminating or scaling back some business activities and following Microsoft’s example in reducing management layers to enhance agility and efficiency. Out of consideration for those affected today, details of these changes and any organizational adjustments will be disclosed by your team leaders shortly.

I understand that these transitions occur at a time when our industry is experiencing unprecedented levels of engagement and success. Our platform and product roadmap are stronger than ever, reflecting the hard choices made previously. We must now make decisions that will ensure our continued success in the years to come, focusing on areas that promise the most potential. This disciplined approach helps us deliver outstanding gaming experiences well into the future.

While prioritizing our opportunities is crucial, it doesn’t diminish the importance of this moment. The contributions of those whose roles are affected have been vital to our current position. These decisions are not a reflection on the talent or dedication of the individuals involved. Our current momentum is a direct result of the commitment and hard work of our teams over the years.

HR is actively working with affected employees to provide severance packages (in accordance with local regulations), including financial compensation, healthcare benefits, and job placement support to facilitate their transition. Individuals whose positions have been eliminated are encouraged to apply for other roles within Microsoft Gaming, where their applications will be prioritized.

Thank you to everyone who has contributed to shaping our culture, products, and community. We move forward with profound gratitude and respect for everyone who has been part of this journey.

Phil

In February, Spencer updated on Everwild after the game was notably absent from several Xbox livestreams since its announcement in 2019.

In an interview with XboxEra, Spencer mentioned Everwild as one of the upcoming games he was enthusiastic about, noting his recent visit to Rare, the studio behind the live service pirate game Sea of Thieves, to check on Everwild’s progress.

“Yes, State of Decay remains a personal favorite since the first game, and it will continue. I also appreciate how Tim [Schafer] at Double Fine gathers team feedback. And visiting Rare recently, it was great to see the team’s progress with Everwild,” Spencer commented.

Spencer expressed that Microsoft had been providing these game developers (of State of Decay, the next game from Double Fine, and Everwild) the necessary time, while still maintaining a packed release schedule, significantly bolstered by the acquisitions of Bethesda and Activision Blizzard.

“We can afford to give these teams the time they need,” Spencer remarked. “Next week, I’ll be in Vancouver with the Coalition [developers of Gears of War] — looking forward to it!”

Everwild had been under scrutiny following reports of a reboot and the departure of its creative director Simon Woodroffe in 2020. Rare appointed veteran designer Gregg Mayles, known for his work on Donkey Kong Country, Banjo-Kazooie, Viva Pinata, and Sea of Thieves, to take over the directorial role.

What was Everwild? Reports suggested it was a third-person adventure game with elements of a god game, but given its long development period, those elements might have evolved. The last trailer for Everwild, released in July 2020, described it as a brand new IP from Rare, offering a unique and unforgettable experience set in a natural and magical world.

Since acquiring Activision Blizzard for $69 billion, Microsoft has enacted numerous reductions in its gaming division. It laid off 1,900 staff in January 2024, followed by additional cuts months later, including the closure of Redfall developer Arkane Austin and Hi-Fi Rush developer Tango Gameworks. In September 2024, Microsoft further reduced its gaming division by 650 staff. And in May of this year, Microsoft made a staggering reduction of 6,000 staff, amounting to 3% of its entire workforce. Today marks the fourth round of layoffs within Microsoft’s gaming division in 18 months.

These layoffs follow closely after Microsoft’s announcement of plans to release next-generation Xbox consoles and its significant presence at the video game show gamescom.