Xbox Layoffs Hit Age of Empires Studio, Report Says

Microsoft's latest round of Xbox layoffs has reportedly gutted the studio behind Age of Empires and cancelled the franchise's next game, according to a report from XDA.

The report does not specify the exact headcount affected at the studio, but describes the reductions as severe enough to halt development of the next Age of Empires title entirely. For the developers involved, the cancellation means more than a project ending: it removes a shipped-franchise credit in progress and forces them back into a job market where game-industry cuts have been frequent.

The news fits a broader pattern at Microsoft's gaming division. The company has carried out multiple waves of Xbox-related layoffs in recent years, following its $69 billion acquisition of Activision Blizzard, and each round has touched internal studios as well as corporate roles. Against that backdrop, the reported dismantling of the Age of Empires team signals that even long-running, brand-defining franchises are not insulated from restructuring decisions.

For workers in the games sector, the practical takeaway is narrow but concrete. Studio consolidation at large publishers continues to concentrate hiring at fewer, larger organizations, and cancellations mid-development tend to release specialized talent — engineers, designers, artists — into the same labor pool at the same time. That dynamic can compress negotiating power for affected developers, particularly those tied to a single franchise or engine.

The report also raises questions about the future of the Age of Empires brand itself. XDA does not state whether Microsoft plans to move the IP to another internal team or license it externally, so the franchise's next steps remain uncertain for now.

If the report holds, expect the affected developers' names to surface across studio hiring pipelines in the coming months, and watch for any Microsoft statement clarifying the scale of the cuts and the fate of the cancelled project.