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Microsoft Cancels Everwild, Sea of Thieves Studio’s Troubled Game

▼ Summary

Xbox is laying off over 9,100 employees in waves, with CEO Phil Spencer citing strategic growth and enduring success as reasons.
– Rare’s action-adventure game Everwild has been canceled after a troubled decade-long development cycle.
– Everwild, announced six years ago, was rebooted in 2021 but remained absent from Xbox showcases since 2020.
– Rare, acquired by Xbox in 2002, has faced challenges with shifting identity and key talent departures over the years.
– Gregg Mayles, a long-time Rare director, and producer Louise O’Connor are leaving following Everwild’s cancellation.

Microsoft has officially canceled Everwild, the long-troubled project from Sea of Thieves developer Rare, as part of broader layoffs affecting over 9,100 employees across Xbox. The decision comes amid restructuring efforts aimed at streamlining operations and focusing on strategic priorities, according to an internal email from Xbox CEO Phil Spencer.

Reports indicate that Everwild, an action-adventure title first announced in 2019, faced significant development challenges and had undergone multiple reboots. Despite early hype and Rare’s reputation for imaginative worlds, the project struggled to find a clear direction. Industry insider Jason Schreier described it as a “troubled” endeavor, with development stretching back over a decade. Though Spencer had previously expressed optimism about the game, its absence from recent Xbox showcases hinted at deeper issues.

Rare, acquired by Microsoft in 2002, has had a mixed track record under Xbox ownership. While the studio delivered hits like Viva Piñata and Sea of Thieves, it also saw key talent departures and shifting creative visions. The cancellation of Everwild raises questions about Rare’s future, especially with reports that veteran developer Gregg Mayles, director of Sea of Thieves, has left the company after 36 years. Mayles was one of Rare’s longest-serving employees, with credits spanning classic titles dating back to the NES era.

The broader layoffs at Microsoft Gaming reflect ongoing industry turbulence, with companies reassessing projects amid economic pressures. For Rare, the loss of Everwild, and key personnel, marks another pivotal moment in its Xbox journey. Whether the studio pivots to new projects or revisits past successes remains uncertain, but fans will be watching closely for signs of its next move.

Updated July 2, 2025: Additional reports confirm that Everwild producer Louise O’Connor has also exited Rare, further underscoring the project’s troubled fate.

(Source: kotaku)

Topics

xbox layoffs 95% everwild cancellation 90% rare studio challenges 85% phil spencers strategic priorities 80% gregg mayles departure 75% louise oconnor departure 70% industry economic pressures 65% rares future prospects 60%