Rare’s Everwild Cancelled Amid Xbox Layoffs
On July 2025, Microsoft’s Xbox Game Studios officially cancelled the highly anticipated game Everwild, developed by Rare. The decision came as part of a broader round of layoffs affecting Xbox and Rare staff, aiming to restructure the studio’s focus and resources. Sources close to the matter confirmed that the cancellation was due to shifting strategic priorities within Xbox Game Studios and challenges in the game’s development progress.
Rare, known for iconic titles such as Sea of Thieves and Banjo-Kazooie, had been working on Everwild for nearly a decade. The game was envisioned as a new IP featuring a unique blend of nature-inspired fantasy and exploration gameplay. However, internal reports indicated that the project faced multiple delays and creative hurdles, which contributed to Microsoft’s decision to halt development.
Microsoft has not released an official public statement detailing the cancellation but acknowledged the layoffs and studio restructuring in a corporate blog post dated July 2025. The layoffs reportedly affected dozens of employees at Rare and other Xbox Game Studios teams.
This cancellation marks a significant shift in Rare’s development trajectory and reflects the broader challenges facing large-scale game productions within major publishers. Fans and industry observers await further announcements regarding Rare’s future projects and Xbox’s strategic plans.
Image credit: Rare / Xbox Game Studios
