Microsoft has officially canceled Everwild, the long-in-development, stylized fantasy project from Rare and Xbox Game Studios, as part of the company’s broader restructure.
Originally revealed in 2019 with a visually striking trailer, Everwild never publicly progressed beyond that and struggled to take shape behind the scenes. Despite multiple reboots and internal shifts, Rare was ultimately unable to find the game’s core vision, leading to its cancelation.
The project’s cancellation also marks a turning point for Rare, with two of the studio’s most prominent figures departing. Gregg Mayles, who spent over 35 years at Rare and helped shape titles like Banjo-Kazooie and Sea of Thieves, is leaving. Executive producer Louise O’Connor, another longtime veteran known for Conker’s Bad Fur Day and Kameo, is also exiting.
Their departures mark a major shift for Rare, which has slowly lost many of its original developers since being acquired by Microsoft in 2002. With Mayles and O’Connor gone, only a handful of the studio’s pre-Microsoft acquisition veterans remain.
Microsoft stated that the cancelation is part of wider company layoffs that will affect about 9,000 employees, despite what Phil Spencer said in an interview with XboxEra on an episode back in February. These cuts also include the closure of The Initiative, the studio behind the Perfect Dark reboot.
While Microsoft says these decisions are part of a broader effort to refocus its gaming division amid the company’s restructure, the cancellation of Everwild and the departure of two of Rare’s longtime leaders have raised more concerns about the studio’s future and Xbox’s ability to manage its first-party projects. Despite this, Head of Xbox Game Studios Matt Booty has reassured fans that all titles shown at this year’s Xbox Summer Showcase are still in active development, with over 40 games currently in the pipeline.
Do you think canceling Everwild and losing Rare’s veteran talent signals deeper issues at Xbox? Let us know in our Discord.
Source: Video Games Chronicle
Source: XboxEra
Featured Image Source: Rare
Corey Dirrig is the Founder and President of Boss Rush Media. He is the host of The Boss Rush Podcast, Nintendo Pow Block, Tower Casuals: The Destiny Podcast, and cohosts a variety of other podcasts and content. You can follow Corey on Bluesky, on X/Twitter, and on Instagram or connect with him on LinkedIn for Business Inquiries.
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