Microsoft has announced the layoff of half of the staff at World’s Edge, the studio responsible for overseeing the Age of Empires franchise. Among those leaving is Adam Isgreen, the creative director for sixteen years, who expressed regret over the sudden halt of plans for the franchise. Andrew Martz, a former senior developer at the studio, confirmed the cancellation of a project that had never been officially announced. He lost his job just seven days after receiving a promotion. A fifth Age of Empires game was indeed in development, though the project’s details remain unofficial. Clues from various sources, including Kotaku, suggest the possibility of a new game set in the Age of Empires universe, which had previously been mentioned as a goal by management.
World’s Edge operated more as a coordinator than a traditional development studio, working with external partners on projects such as Age of Empires IV with Relic Entertainment, remastered versions of older games, and Age of Mythology Retold. The franchise has been performing well, supported by these remasters and the release of a fourth installment in 2021. The recent layoffs are therefore particularly concerning, as the remaining team is now under the management of Activision, a company known for blockbuster titles like Call of Duty and Diablo. This move has raised questions, as Activision is primarily known for shooter games, not the real-time strategy titles that define the Age of Empires series.
According to Stephen Totilo of the newsletter Game File, Rare, the studio behind the Halo franchise, is also joining Activision, with development of Halo moving there. Meanwhile, Obsidian Entertainment is relocating to Bethesda, which has also experienced layoffs. This pattern of acquiring beloved franchises and then reducing or restructuring the teams behind them is not new. Microsoft has previously closed studios such as Arkane Austin and Tango Gameworks, and even turned id Software, the creator of Doom, into an empty shell. This approach of acquiring cult franchises and then cutting the teams that sustain them has become a recurring strategy. This reorganization follows the layoff of 4,800 employees and the closure of four studios earlier this year, with more studios potentially at risk.
Microsoft has not officially mentioned World’s Edge or Age of Empires in its recent post titled "Continuing Our Reset," which frames the layoffs as a necessary cost-cutting measure. However, no studio has actually been saved in the process. Internally, tensions are rising, with Shannon Loftis, who led World’s Edge for nearly thirty years at Microsoft, criticizing Asha Sharma, the new head of Xbox, who had previously faced backlash after the 4,800 layoffs. According to Xboxygen, Sharma reportedly mocked a formula launched by an executive at the Wall Street Journal, "clarity is a form of kindness," just before announcing another wave of layoffs.
While Microsoft has not canceled any projects listed on a public calendar, the Age of Empires series has lost its dedicated studio, its creative director, and its largest project. The future of Age of Empires 5 remains uncertain, with no official statement from Microsoft regarding the remaining team at Activision. Fans of the series are left waiting for clarity, while the broader industry watches the evolving landscape of game development under Microsoft’s increasingly centralized structure.
Microsoft Layoffs Impact Age of Empires Studio and Franchise Development
AI-rewritten from original reportingHow it works
microsoftworlds-edgeage-of-empireslayoffsactivisiongaming



