Thu. Nov 20th, 2025

Rare’s Somber Message on Xbox Layoffs and Everwild’s Cancellation

Rare, the studio renowned for Sea of Thieves, has addressed the recent widespread layoffs at Microsoft, which resulted in the cancellation of their long-developed project, Everwild.

During the July developer update video for Sea of Thieves, Rare`s production director, Drew Stevens, began by acknowledging the discontinuation of Everwild`s development. He stated it would be inappropriate to proceed with regular updates without addressing such significant news.

Everwild was initially unveiled in November 2019, but apart from a trailer in 2020, there had been very few updates on its progress. Sources indicate that Rare struggled to establish a clear direction for the game, ultimately leading to its termination.

Stevens clarified that Everwild`s cancellation would not “directly impact” Sea of Thieves, confirming that its development is proceeding as planned. He emphasized that the studio`s primary focus is currently on supporting colleagues whose roles are at risk.

He further noted that such an event inevitably affects everyone within the studio and requested patience. Stevens expressed his gratitude to all who reached out with support, stating how much their kind words meant.

Beyond Everwild, Microsoft`s Xbox division cutbacks also led to the cancellation of other projects, including a new MMO from ZeniMax Online Studios (developers of The Elder Scrolls Online) and the anticipated new Perfect Dark title. Numerous developers across various Microsoft studios were also laid off.

These extensive job cuts are part of a broader Microsoft restructuring that impacted over 9,000 employees, occurring amidst the company`s substantial investments in artificial intelligence initiatives. Some laid-off developers from King, the Microsoft-owned studio behind Candy Crush, have even claimed they are being replaced by AI systems they helped create.

By Artemius Grimthorne

Artemius Grimthorne Independent journalist based in Manchester, covering the intersection of technology and society. Over seven years investigating cyber threats, scientific breakthroughs and their impact on daily life. Started as a technical consultant before transitioning to journalism, specializing in digital security investigations.

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