Xbox Layoff Wave Hits World's Edge: New Age of Empires Project Cancelled

Microsoft has once again shaken the gaming industry with layoffs affecting 268 employees and a sweeping restructuring that hit World's Edge, the studio managing the Age of Empires series. According to former employees, nearly half of the studio's staff were laid off, and a new game project in development was forced to be cancelled.

This layoff wave is a continuation of the major cuts announced early last July, when Microsoft let go of 1,600 employees and spun off several prominent studios such as Double Fine and Ninja Theory. Now, a deeper restructuring is underway: the Halo series has been moved to Activision, Obsidian Entertainment is now under Bethesda Softworks, and World's Edge has also been handed over to Activision. As a result, World's Edge, founded in 2019 to oversee the Age of Empires franchise, has taken a heavy blow.

Adam Isgreen, former creative director at World's Edge, revealed through the ResetEra forum that he was among those laid off. Meanwhile, Andrew Martz, a software engineer, wrote on LinkedIn that the next project was officially cancelled. "I guess it's time to pick up the pieces once again," wrote Martz, who had just been promoted a week earlier. Because World's Edge was formed specifically to handle Age of Empires, the cancellation of this project is most likely a new game in the franchise or a spin-off such as Age of Mythology.

"I guess it's time to pick up the pieces once again." — Andrew Martz, laid-off software engineer

Since its founding, World's Edge has contributed to the Definitive Editions of the first three Age of Empires games, the remastered version of Age of Mythology, and Age of Empires 4, released in 2021. With the massive reductions and project cancellation, the future of the Age of Empires series now hangs in the balance. Microsoft's move aligns with statements from Xbox leadership that it will prioritize a franchise-based approach, focusing on existing series rather than new IP. Ironically, however, World's Edge, which had already implemented that strategy, was still affected.

For the Indonesian gaming industry, these layoffs signal that global tech giants are becoming increasingly selective in managing their portfolios. Local developers who depend on projects from major publishers need to be wary of this uncertainty. Moreover, with fewer studios handling classic franchises, gamers in Indonesia may see long gaps or even the disappearance of the Age of Empires series in the future. The strategy game market in the country, which has a loyal fan base, could be affected if there is no successor.

Going forward, the question is whether Microsoft will keep World's Edge as a separate entity or fully merge it into Activision. If the layoff trend continues, it is possible that other legendary series will meet a similar fate. The global gaming industry is entering an uncomfortable phase of consolidation, and players in Indonesia can only hope that their favorite franchises do not become the next victims.