Microsoft Layoffs Hit Age of Empires Studio, New Sequel Reportedly Cancelled

Microsoft's latest round of Xbox layoffs has hit World's Edge, the studio behind Age of Empires, with a new mainline sequel reportedly shelved amid the cuts.

Microsoft's latest round of Xbox layoffs has landed a heavy blow on World's Edge, the studio that manages the Age of Empires franchise — and fans are worried the series' next big entry may never see the light of day.

According to a report from Rock Paper Shotgun, the cuts have hit the real-time strategy series' overseeing studio. Creative director Adam Isgreen confirmed on LinkedIn that he was among the 268 employees let go in this round, writing that it was "a shame for me and many incredibly talented teammates to end this way."

A verified but unnamed creative director on ResetEra claimed that with World's Edge shifting from direct Xbox management to coming under Activision, nearly half of the studio's staff have been laid off. World's Edge mainly handles franchise remasters and coordination between studios rather than serving as the primary developer — so the news immediately sparked concern over whether it can still manage and operate the IP.

Even more worrying for fans is the fate of a new game. Andrew Martz, a senior software engineer at World's Edge, said on LinkedIn that "our next project" has been put on hold due to the restructuring. Combined with the studio's previous hints at a brand-new mainline entry such as Age of Empires 5, many now believe the highly anticipated sequel has likely been quietly cancelled.

Veteran Age of Empires developer Earnest Yuen, who retired from Microsoft just this June, also posted on LinkedIn to mourn the affected colleagues. He noted that those laid off had poured years of heart into the games for players, saying that "everything you created mattered, and it touched millions of players."

This round of layoffs is part of a large-scale "reset" of Microsoft's gaming business. An initial wave in July cut around 1,600 jobs, with the total expected to reach 3,200. So far, neither Microsoft nor former World's Edge staff have offered further comment on the rumored cancellation of the new game.

What do you think — is this really the end of the road for a new Age of Empires, or could the series still make a comeback? Let us know in the comments.