Microsoft's July layoffs and cancellations continue to reverberate, causing lingering effects

In the dynamic world of video game development, there have been several significant changes recently. One of the most notable is the cancellation of the Perfect Dark reboot, a project led by The Initiative, which was subsequently closed following the cancellation. This decision was part of Microsoft's larger layoff of approximately 9,000 employees.

The cancellation of Perfect Dark seems to have had a ripple effect, with Crystal Dynamics, the studio that took over the project in 2021, taking a hit in July. Crystal Dynamics put 17 people out of work, and more recently, another round of layoffs was announced. Narrative designer Leilan Nishi, who was among those laid off, stated that her termination came "in the aftermath of Perfect Dark's cancellation."

The unionization push in the gaming industry is in part a response to the lack of job stability and the near-constant threat of mass layoffs. Following the lead of Crystal Dynamics, more than 450 people on the Diablo development team at Activision Blizzard voted to unionize. The Blizzard's World of Warcraft and Overwatch 2 teams, as well as Microsoft-owned Bethesda Game Studios, have also formed unions.

However, the future of Tomb Raider, a franchise developed by Crystal Dynamics, is currently unclear. The most recent Tomb Raider game, Shadow of the Tomb Raider, was released in 2018, and there's been no subsequent word of when to expect an actual new Tomb Raider game. The new-look Lara has since appeared in Pinball FX and World of Tanks, but whether this marks a new direction for the franchise remains to be seen.

In response to the layoffs, Crystal Dynamics has promised to offer support and resources to those affected by the cuts. Similarly, Embracer, the parent company of Crystal Dynamics, has communicated the layoffs publicly via LinkedIn and offered transition support to impacted workers.

Meanwhile, other studios have faced similar challenges. Romero Games, for instance, cancelled an in-development FPS and laid off employees after losing funding for the project.

As the gaming industry continues to evolve, it's clear that job security remains a concern for many developers. The recent wave of layoffs and unionization efforts underscores the need for stability and fair treatment in this exciting and competitive field.

Andy Chalk, a gaming journalist, has reached out to Embracer to ask how many people have been let go, but as of this writing, no response has been received. The 'Unified Lara' art was released in early 2024, hinting at potential future plans for the Tomb Raider franchise, but the details remain to be seen.

Microsoft's July layoffs and cancellations continue to reverberate, causing lingering effects