Microsoft Culled Age of Empires Studio Before Handing It Over to Activision, With Nearly Half of All Staff Gone

Microsoft has laid off nearly half of World’s Edge’s staff this week as part of a major Xbox restructuring. The Age of Empires developer lost approximately 50% of its workforce, contributing to 268 total job cuts across the Xbox division. This is part of Microsoft’s broader target of 3,200 employee reductions throughout the current financial year, following earlier layoffs that resulted in studio closures including Double Fine and Ninja Theory.

In a significant organizational change, World’s Edge is being transferred to Activision, and its next project has been cancelled as a consequence. Former employees have speculated the cancelled project was an unannounced Age of Empires title, though Microsoft has not officially confirmed this. The cancellation was referenced by departing staff on social media, with at least one former senior software engineer indicating the project would not continue under Activision’s control.

The restructuring also includes other major shifts: the Halo franchise is moving to Activision, and Bethesda Softworks has been given control of Obsidian Entertainment. World’s Edge, created by Microsoft in 2019 to oversee the Age of Empires franchise, is now part of a widening consolidation of Xbox’s development and publishing operations.

Sources

• Microsoft Culled Age of Empires Studio Before Handing It Over to Activision, With Nearly Half of All Staff Gone
• Age of Empires Developer World’s Edge’s Next Game Cancelled
• Age of Empires Studio’s Next Game Canceled as Part of Xbox Layoffs
• Xbox Studio ‘World’s Edge’ May Have Cancelled A Game As Part Of Activision Shift
• Age of Empires Dev Has Half of Studio Slashed, Project Cancelled Amid Xbox Layoffs