Everwild, the long-in-development fantasy title from Rare, has reportedly been canceled, according to a new report by VGC. The cancellation appears to be directly linked to the most recent wave of Microsoft layoffs, which affected thousands of employees and multiple game studios.
Everwild’s Uncertain Journey Comes to an End
The cancellation comes just months before the sixth anniversary of Everwild‘s reveal at the X019 event in London on November 14, 2019. Rare originally teased the game as a visually arresting title set in a magical ecosystem filled with strange creatures and spiritual themes. However, the project quickly became known for its shifting vision and lack of gameplay clarity. Over the years, Rare struggled to define Everwild‘s genre, with early descriptions hinting at a mix of action-adventure, survival, and life simulation—some even comparing it to the beloved Viva Piñata franchise.
Microsoft Layoffs Hit Rare Hard
The reported cancellation is part of a broader restructuring effort at Microsoft, officially announced on July 2, 2025, impacting up to 9,000 employees—roughly 4% of the company’s global workforce. Rare, which has been under Microsoft’s ownership since 2002, is among the studios affected. While Microsoft has yet to confirm the cancellation publicly, multiple sources familiar with the matter told VGC that Everwild’s development has now ceased entirely. The game had been in active development for over a decade and underwent several internal reboots.
A Loss for Xbox’s Original IP Ambitions
Everwild was seen as a key part of Microsoft’s push to deliver new and creative original IPs for its Xbox ecosystem. Its reported cancellation follows a string of challenges for Xbox Game Studios, including earlier studio closures and project cancellations. The lack of clear direction, long production cycle, and recent layoffs make Everwild yet another cautionary tale about the difficulty of bringing ambitious new titles to market in today’s volatile industry.
What’s Next for Rare?
Despite the setback, Rare continues to support Sea of Thieves, which remains one of Xbox’s most successful live-service titles. However, questions linger about what other projects, if any, Rare will focus on next—and how the studio will recover from the reported internal impacts of the layoffs.
Stay tuned for official statements from Rare or Microsoft as the situation continues to develop.