Every Canceled Xbox Game in 2025: Everwild, Perfect Dark, & More

2025 was a brutal year for Xbox fans, as ambitious titles fell to corporate restructuring.

Kyle S

2025 has become a defining and devastating year for Xbox Game Studios it really Sucks. Amid sweeping layoffs and strategic shifts within Microsoft, several highly anticipated first-party Xbox games were officially cancelled. From long-awaited reboots to mysterious new IPs, the cancellations have sent shockwaves through the gaming industry, raising questions about Xbox’s future direction.

Here’s a comprehensive look at every major Xbox game canceled in 2025:

Perfect Dark Reboot

  • Developer: The Initiative (now closed)
  • Canceled: July 2025

The reboot of Perfect Dark was one of Xbox’s most high-profile projects and one of its biggest casualties. Originally announced in 2020 and developed by the Santa Monica-based studio The Initiative, the game was intended to be a bold return for Joanna Dark in a near-future spy thriller.

However, years of development turbulence, management departures, and outsourcing struggles led to uncertainty around the project. In July 2025, Microsoft officially canceled the game and shut down The Initiative entirely, citing a need to consolidate resources and refocus their studio portfolio.

Everwild

  • Developer: Rare
  • Canceled: July 2025

Rare’s mysterious and visually stunning Everwild had captivated players ever since its reveal at X019 in London. The game promised a serene, almost spiritual experience centred around nature and magical creatures but it never solidified into a clear gameplay concept.

Development reportedly restarted multiple times, and after nearly a decade in limbo, Microsoft pulled the plug in 2025 as part of widespread restructuring at Xbox Game Studios. The move is particularly crushing for Rare fans, who had hoped Everwild would usher in a new era for the studio.

Forza Motorsport Series

  • Developer: Turn 10 Studios
  • Status: Reportedly canceled

According to reports from former employees, the Forza Motorsport series may also have reached the end of the road. While the latest entry launched in late 2023, its commercial performance fell short of expectations, leading Microsoft to allegedly disband the Turn 10 team dedicated to Motorsport and shift focus entirely to the more accessible Forza Horizon franchise by Playground Games.

Though not officially confirmed, this report adds fuel to concerns that Xbox is deprioritizing its simulation racing portfolio in favor of broader market appeal.

ZeniMax Online’s Cancelled MMORPG

  • Developer: ZeniMax Online Studios
  • Status: Cancelled

Behind the scenes, ZeniMax Online Studios was working on a brand-new unannounced MMORPG, described as a next-gen evolution of their work on The Elder Scrolls Online. Unfortunately, this ambitious project was shelved during Microsoft’s sweeping layoffs, which hit ZeniMax and Bethesda particularly hard.

The cancellation represents a major blow to Xbox’s future MMO ambitions and underscores how even unannounced titles aren’t safe in the current corporate climate.

The Bigger Picture

Microsoft’s 2025 layoffs affected nearly 9,000 employees across its gaming division. The company cited a need to “reprioritize” and “align with strategic goals” but to fans and developers alike, the damage is clear. Xbox has lost not just games, but entire teams and years of creative work.

This wave of cancellations comes amid broader questions about Xbox’s position in the industry. With Game Pass facing growth slowdowns and multiplatform strategies still in flux, the road ahead remains uncertain.

What’s Still Standing?

While these cancellations are disheartening, some Xbox titles remain in active development including Fable, Avowed, Clockwork Revolution, and Senua’s Saga: Hellblade II. However, after the events of 2025, confidence in long-term Xbox projects has been shaken.

The cancellations of Perfect Dark, Everwild, and others mark a sobering moment for Xbox fans and developers alike. Once symbols of ambition and innovation, these projects are now cautionary tales in an industry increasingly defined by risk aversion and corporate realignment.

As Microsoft reshapes its gaming identity, the big question looms: what kind of future is Xbox building and who will be left to shape it?

Stay tuned for more updates as the Xbox ecosystem continues to evolve.