Massive Job Cuts Shake Xbox Division
Microsoft’s gaming division has entered a turbulent phase as the company recently announced a sweeping wave of layoffs, affecting around 9,100 employees—approximately 4% of its global workforce. Among those hit hardest is Xbox’s gaming segment, where nearly 2,000 employees are reportedly being let go.
These layoffs are accompanied by a string of cancellations and studio closures. Several unannounced projects were quietly shelved, and highly anticipated titles such as Perfect Dark (remake) and Everwild have also been scrapped. The Initiative, the studio responsible for the Perfect Dark remake, has reportedly been shut down entirely.
Forza Motorsport Division at Turn 10 Closed
Adding to the bleak outlook, Microsoft has now reportedly pulled the plug on the development of the Forza Motorsport franchise. A former developer from Turn 10 Studios, who shared details on the ResetEra forums, revealed that Microsoft has disbanded the team responsible for the Motorsport series.
This marks a significant moment in the franchise’s history, suggesting that Forza Motorsport will no longer be actively developed. Instead, Turn 10 will now lend its support to Playground Games, the studio behind the more arcade-style Forza Horizon series, which reportedly has a new title in development.
Signals Were Already There
This news sheds light on why last year’s 20th anniversary celebrations for Forza Motorsport felt underwhelming to fans. In May, Turn 10 and Microsoft reintroduced the legendary Japanese track Fujimi Kaido—a fan favorite known for its over 140 turns, 800 meters of elevation change, and 16 kilometers of twisting road. The track was added for free to the latest Forza Motorsport release on Xbox Series X/S and PC. At the time, the gesture seemed modest for such a major milestone. Now, with the franchise’s future in doubt, the subdued celebration makes more sense.
Turn 10 Studio Severely Impacted
The impact of the layoffs on Turn 10 has been severe. According to Bloomberg, the studio lost nearly 50% of its workforce—around 70 developers. Insider Gaming went further, quoting a source who described the studio as “decimated,” adding that there is little clarity about what the future holds for Turn 10.
Franchise Future in Question
The future of the Forza Motorsport franchise remains uncertain. While The Verge suggests a small team may continue to handle maintenance and updates, the core development team appears to be gone. On Facebook, former Turn 10 developer Fred Russell, who left the studio in 2016, commented that the Forza Motorsport division has been disbanded and “no longer exists.” He clarified, however, that Turn 10 Studios itself remains open, now focused on supporting Forza Horizon.
Forza Horizon and Fable Still Moving Forward
Despite the end of Forza Motorsport development, Playground Games continues to work on the Forza Horizon series. Known for its open-world, arcade-style racing, the next installment—Forza Horizon 6—is expected to launch in 2026. The studio is also deeply involved in the long-awaited RPG Fable, which is slated for release next year.
As Microsoft reorganizes its gaming priorities, it appears that Forza Motorsport, once a flagship racing simulator known for its realism, may now be heading for the finish line.