Heavy layoffs at Microsoft hit Xbox hard, with thousands reportedly losing their roles, and the layoffs came alongside several canceled games at Xbox studios.
Game development can often be a rollercoaster ride, and cancelations are no stranger in the industry, but the games that emerged as being scrapped certainly caused a stir.
We’ve outlined all of the canceled games from Xbox in 2025 amid the layoffs below, alongside details of other games scrapped this year.
Xbox Games Canceled in 2025
Everwild
Rare was one of two games canceled by Xbox amid the July 2025 layoffs that we’d already seen a fair bit about, having been announced during an Xbox presentation in November 2019. However, the development was reportedly troubled, and there was no sign of Everwild at Xbox’s Summer Games Fest Showcase.
It’s not clear what’s next in line for Rare, the developer behind Sea of Thieves and Banjo-Kazooie, particularly with the news that game director Gregg Myles is leaving the studio after more than 35 years.
Perfect Dark
The cancellation of Perfect Dark came amid more negative news, with developer The Initiative shut down and Xbox’s partnership with Crystal Dynamics coming to a close. Of all the cancellations, this was perhaps the most surprising, given Perfect Dark featured in June 2024’s Xbox showcase.
A reboot of a title first released 25 years ago for Nintendo 64, Perfect Dark reportedly attracted some big names, including the creative director of Marvel’s Wolverine, and anticipation for the title was high. However, we’re no longer going to see the revival of the series, with plans likely shuttered for good.
ZeniMax Studios Online MMORPG
ZeniMax Studios Online, the team behind Elder Scrolls Online, were working on a new, unnamed online MMORPG, reportedly codenamed Blackbird, but that work has come to an end following a slew of layoffs, with the title one of three games confirmed to be cancelled by Xbox.
The news came alongside another big departure, with president Matt Firor announcing he will be leaving the company at the end of the month. Few details were known about the game, but given the success of Elder Scrolls Online, it certainly comes as a shock to the gaming community.
What Other Games Were Canceled in 2025?
While Xbox has made the headlines with the latest slew of cancellations and layoffs, they’re not the only company to make big decisions in 2025 to pull the plug on titles in development.
In May, EA canceled the unnamed Black Panther game and shut down Cliffhanger Studios, with reports later providing details on the decision, claiming the title wasn’t far enough along in development. Black Panther wasn’t the only superhero-themed game to face the axe, as in February, Warner Bros. Games cancelled Wonder Woman and shut down multiple studios.
Back in April, Respawn Entertainment announced the cancellation of two unnamed games to place more focus on Apex Legends and the Star Wars Jedi series. One of these games was reportedly an unannounced multiplayer FPS, but no details are known about the second title scrapped.
PlayStation had its own canceled titles too, with two live-service games cancelled in January, including a God of War title.
Which of the games canceled this year were you most excited for? Let us know your thoughts in the Insider Gaming forum.
For more on the Xbox layoffs, read about games shown on Xbox’s latest showcase being “safe”, and Turn 10 Studios losing nearly half of its staff.
How long until Contraband and State Of Decay 3 get cancelled. It was obvious these games would be cancelled the Xbox studios outside ABK and Bethesda can’t release games. Obsidian will be next, Compulsion, Rare, Turn 10, Undead, Halo, and Coalition.