Microsoft Game Division Faces Major Cuts: Forza Motorsport Team Disbanded, Romero Games Shuts Down Completely

Last week, Microsoft implemented a workforce reduction affecting approximately four percent of its employees, which translates to over 9,000 individuals, particularly impacting the gaming sector. The parent company of Xbox made significant cuts across various first-party studios and discontinued a number of projects, such as the reboot of Perfect Dark. More information has emerged regarding the repercussions of the latest layoffs at Xbox, particularly concerning Turn 10 Studios, the developer behind Forza Motorsport, and Romero Games, located in Ireland. Reports indicate that the Forza Motorsport team was laid off entirely, while Romero Games has ceased operations, according to former workers at these studios.

The End of the Forza Motorsport Team

Turn 10 Studios, responsible for the Forza Motorsport franchise, has been reportedly affected by the recent job cuts, along with several other studios. Following the layoffs, Fred Russell, a former employee of Turn 10, asserted that the entire Forza Motorsport team has been disbanded.

“Turn 10 Studios has closed the Forza Motorsport division, and the team is no longer in existence,” Russell stated in a Facebook post on Friday. “It’s a very somber day for one of the best car racing game franchises. I cherished my time there.”

In response to comments on his post, Russell mentioned that the Forza Horizon series, the arcade racing alternative to Forza Motorsport developed by British studio Playground Games, would still be moving forward. “Horizon will continue… for the time being,” Russell mentioned.

Russell clarified that Turn 10 was willing to assist with the development of the Forza Horizon series, and it was solely the Forza Motorsport side that had been terminated. His remarks suggest that Microsoft may not be producing any further Forza Motorsport entries, casting doubt on the future of the renowned racing simulation series. “The legacy will endure, even if the game has no future,” he noted.

Closure of Romero Games

Alongside Turn 10 Studios, Ireland-based Romero Games, established by industry pioneers John and Brenda Romero, has reportedly shut down following the layoffs. Romero Games announced last week that it had lost financial backing for its projects and was assessing its forthcoming actions.

A source from Romero Games, who preferred to remain anonymous, informed The Journal that all employees—over 100 individuals—had been laid off.

“We had a meeting with the publisher just the day prior, and there was no indication of this,” the staff member was quoted as saying in a report published on Friday.

“We are exploring alternative funding methods for the project,” said the employee. “But for now, the studio is entirely closed,” they further explained.

Romero Games was reportedly working on a first-person shooter and several other undisclosed projects, with Microsoft acting as the publisher. After the latest layoffs, the company is said to have withdrawn financial support for Romero Games’ initiatives.

Xbox did not elaborate on the full extent of the impact on its studios and projects last week but indicated it would “reduce or terminate work” in specific areas of its operations. In an email to Xbox employees last week, Xbox Game Studios leader Matt Booty confirmed the cancellation of the Perfect Dark reboot and Rare’s Everwild, among other unannounced projects. He also stated that The Initiative, the developer of Perfect Dark, would be dissolved.

However, Bloomberg reported that the layoffs had affected numerous Xbox-owned studios, including Candy Crush developer King, Call of Duty creators Raven Software and Sledgehammer Games, Halo developer Halo Studios, and Turn 10 Studios.

Turn 10 has been at the forefront of the Forza Motorsport series since its inception in 2005 on the original Xbox. The studio launched Forza Motorsport, the eighth installment in the series, in 2023.