Microsoft’s recent wave of layoffs, impacting roughly four percent of its workforce or over 9,000 employees, has sent shockwaves through the gaming industry. The Xbox division bore the brunt of these cuts, leading to project cancellations and significant staff reductions at several first-party studios. Emerging details paint a grim picture, particularly for the Forza Motorsport franchise and Ireland-based Romero Games.
Rumors are swirling that the entire Forza Motorsport team at Turn 10 Studios has been eliminated, while Romero Games, co-founded by industry legends John and Brenda Romero, is said to be completely closed down. These developments, initially reported by former staff members, raise serious questions about the future of both studios and their respective projects.
Fred Russell, a former Turn 10 employee, posted a heartbreaking message on Facebook, stating, “Turn 10 Studios has shuttered the Forza Motorsport space and the team is no more. A very sad day for one of the best car racing video games. I loved my time there.” The post suggests a complete disbanding of the team responsible for the acclaimed racing simulator.
In response to comments on his post, Russell clarified that Forza Horizon, the more arcade-style offshoot developed by Playground Games, would “continue… for now.” He indicated that Turn 10 might still provide support for the Horizon series, but the Motorsport side has been effectively dissolved. This implies that Microsoft might be stepping away from developing new Forza Motorsport titles, placing the future of the franchise in jeopardy.
“The legacy will stay, even if there is no future for the game,” Russell wrote, reflecting the sentiment of many fans and former employees.
Adding to the distress, Romero Games, known for its work on titles like Empire of Sin, is also reportedly closed. The studio had previously acknowledged funding challenges on X.com, stating they were “evaluating” their next steps.
According to a report in The Journal, an unnamed Romero Games employee stated that all 100+ staff members were laid off. “We had meetings with the publisher the day before this happened, there was no mention of it,” the staffer revealed, highlighting the abrupt nature of the decision.
The employee further explained, “We’re trying to find other ways of funding the project, but for now, it’s completely closed, and the studio is closed.” Romero Games was reportedly working on a first-person shooter, potentially in partnership with Microsoft. The pullling of funding for these projects appears to have sealed the studio’s fate. A source close to the studio described the mood as “utter shock” after the announcement.
While Microsoft has not confirmed the full scope of the cuts, Xbox Game Studios head Matt Booty acknowledged in an email to staff that the company would “end or decrease work” in specific areas. He confirmed the cancellation of the Perfect Dark reboot and Rare’s Everwild, along with other unannounced projects, as well as the closure of The Initiative, the Perfect Dark developer. The extent of the impact is starting to take its toll, and several individuals across many studios, felt the devastating effects of the cuts.
One former employee, speaking on condition of anonymity, described the atmosphere at Turn 10 in the days leading up to the layoffs. “There was a sense of unease, but no one truly expected this,” they said. “We had just released Forza Motorsport to positive reviews, and we were already brainstorming ideas for future updates and expansions.” Things took an unexpected turn.
Industry analyst Emily Carter weighed in on the situation:
“Microsoft’s decision to scale back its gaming operations reflects a broader trend in the tech industry, where companies are reevaluating their investments in light of economic uncertainty. However, the abrupt nature of these cuts, particularly the rumored closure of the Forza Motorsport team, raises concerns about Microsoft’s long-term commitment to certain franchises and studios.”
Carter added, “The gaming landscape is becoming increasingly competitive, and retaining talented developers is crucial for success. These layoffs could have a significant impact on the quality and innovation of future Xbox titles.”
This round of cuts raises several critical questions:
- What is the future of the Forza Motorsport franchise? Will another studio take over development, or will the series be shelved indefinitely?
- What are the long-term consequences of these layoffs for the Xbox brand? Will Microsoft be able to attract and retain top talent in the face of such instability?
- How will these cuts affect the overall gaming ecosystem? Will smaller studios and independent developers benefit from the shifting landscape, or will the industry become even more consolidated?
The gaming community is grappling with these uncertainties, as are the many talented individuals who have lost their jobs as a result of Microsoft’s decision. The long-term repercussions of these cuts remain to be seen, but one thing is clear: the gaming industry is undergoing a period of significant upheaval. The loss of studio funding has been hard for many of the engineers whom relied on that source of revenue, some whom had worked at the studios for upwards of 15 years. It is a major hit on the gaming industry.
