This update covers significant changes at Microsoft Gaming, where major decisions have recently reshaped current projects and teams. Some initiatives have been discontinued in favor of a more cautious and strategic reallocation of resources.
Microsoft has decided to cease operations at its Santa Monica-based AAA studio, established in 2018. Despite nearly seven years under its banner, the studio did not manage to launch any titles. Alongside the studio’s shutdown, the anticipated reboot of a beloved classic featuring Joanna Dark has been completely abandoned. This project was envisioned as a narrative-rich revival of the iconic series, set in a future marred by environmental challenges and corporate dominance.
Development efforts were consistently hindered from the outset. The project struggled with internal difficulties, frequent changes in personnel, and a vague creative vision. These complications ultimately led to the decision to discontinue the initiative, signaling a clear pivot in Microsoft’s development strategy.
This closure is just one aspect of a broader restructuring within the company. Additional moves include the cancellation of other projects such as Rare’s Everwild and an undisclosed MMORPG from ZeniMax Online Studios. A reallocation of talent and budget has resulted in significant workforce reductions, affecting roughly 9,000 employees—about 4% of the overall workforce. Key points include:
- Realignment of resources towards projects deemed strategically safer.
- Efforts to consolidate assets and focus on projects with clear market potential.
- Strategic moves that, while difficult, are intended to Guarantee a prosperous and enduring future for the organization.
Microsoft Gaming’s leadership acknowledged in an internal memo that these decisions were made after much deliberation, emphasizing that the shifts were necessary to concentrate on investments with a more assured strategic impact. For those who had high hopes for the revival of the classic franchise, this news comes as a disappointment.