The news was initially confirmed in a statement signed by Brenda Romero and posted on X. “Last night, we learned that our publisher has canceled funding for our game along with several other unannounced projects at other studios,

These changes come at a time when we have more players, games, and gaming hours than ever before,” said Xbox head Phil Spencer in an email to staff.

Microsoft has reportedly cancelled Everwild, an in-development game from UK-based Sea of Thieves developer Rare, and potentially other projects amid a round of layoffs that will see the company lose upwards of 9000 employees.