A recent wave of layoffs across Xbox Game Studios has struck several high-profile development teams, curbing their workforce and stripping away key aspects of their operational independence, being integrated directly into larger publishers like Activision and Bethesda.

Among the hardest-hit is a prominent studio responsible for some of PC gaming’s most celebrated historical titles, as they have lost over half of its team during this latest round of downsizing.

World’s Edge Deeply Affected by XBOX Mass Layoffs

For real-time strategy fans, World’s Edge remains a cornerstone studio thanks to its stewardship of two legendary franchises: Age of Empires and Age of Mythology. Both series have maintained active player bases through remasters, new expansion packs, and expanding mobile adaptations. However, the studio now faces serious issues following these sudden staff reductions.

Confirming the severity of the situation, former World’s Edge Creative Director Adam Isgreen revealed that he was among those let go. He noted that the studio was stripped of more than 50% of its workforce, leaving behind “just under half” of its original staff to carry projects forward.

World’s Edge is losing its status as an independent entity as they now have to report directly to Activision executive leadership. This change leaves the future of Age of Empires and Age of Mythology uncertain, considering that the industry has largely shifted focus away from traditional RTS titles.

Despite his departure after 16 years, Isgreen regretted the layoffs and expressed hope for those who remain, noting that ambitious initiatives were already underway prior to the restructuring.

“I am of course disappointed that this is the way the time with World’s Edge and Age ends for myself and many of my talented teammates that were also impacted - we had some great plans for what’s next - and I hope the team that remains can rise to the occasion down the line,” he wrote.

Activision President Rob Kostich issued a brief statement welcoming World’s Edge into the publisher’s umbrella, calling it “an honor and a responsibility” to oversee the studio’s historical legacy. However, Kostich did not reveal what would occur with the Age of Mythology and Age of Empires franchises.

World's Edge

Which XBOX Studios Were Affected by the Layoffs?

Xbox confirmed 268 total positions eliminated across XBOX Game Studios. Notably, Halo Studios is being transitioned into a supporting development role, with Activision assembling a dedicated team to lead production on the next mainline Halo entry.

The Coalition saw high-profile departures including Juan Vaca, narrative director for the upcoming Gears of War: E-Day, just days after celebrating the game’s imminent launch. However, despite earlier industry rumors suggesting Blizzard Entertainment would face deep cuts, the studio emerged largely unscathed and continues normal operations on its current slate.

Microsoft also confirmed that negotiations remain ongoing to stabilize Arkane Studios’ future. However, attempts to save Ninja Theory ultimately collapsed, which means it will close soon.

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