Xbox just dropped a bombshell on the industry—studio closures, major game cancellations, and massive layoffs. What does it all mean for the future of Xbox? Let’s break it down.

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This week on Xbox Casuals, Josh Finney and Corey Dirrig dive into one of the most shocking weeks in recent Xbox history. Microsoft has confirmed the closure of The Initiative, the studio once tasked with reviving the Perfect Dark franchise. Not only has the game been officially canceled, but other high-profile projects have also been cut—including Rare’s long-anticipated Everwild and ZeniMax’s unannounced MMO, Project Blackbird.

That’s just the beginning. The episode also covers the latest round of layoffs across Xbox Game Studios, which has hit multiple teams hard. Turn 10, the team behind Forza Motorsport, has reportedly lost 50% of its staff. Mobile studio King saw a 10% reduction, and there are unconfirmed but significant cuts at Activision, Blizzard, Bethesda, and other first-party studios under the Xbox umbrella.

Josh and Corey discuss what these changes could mean for Xbox’s future strategy, the morale across the gaming community, and how fans are responding to the ongoing turbulence within Microsoft’s gaming division. They also touch on how these decisions might impact the roadmap for the next generation of Xbox hardware and software.

Whether you’re a long-time Xbox fan or just trying to keep up with the whirlwind of news, this episode brings thoughtful analysis, honest reactions, and a much-needed breakdown of a chaotic week in gaming.

All that and more, right here on Xbox Casuals.

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