Microsoft (MSFT) stock was up on Thursday after the company’s recent layoffs resulted in the cancellations of some Xbox games. Three of the biggest games killed by the Microsoft layoffs were a new Perfect Dark title, Rare’s Everwild and a massively multiplayer online game (MMO) that was in the works at ZeniMax Online Studios. Additionally, no new content will be released for Blizzard’s Warcraft Rumble.
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On top of this, several other unnamed games have also been canceled. The finer details of these projects are unknown, as Microsoft had yet to announce them. Even so, Romero Games noted that funding was pulled from its new game, which Xbox was believed to be publishing. One employee affected by layoffs at Romero Games noted it was due to Xbox’s job cuts.
Video Game Studios Affected by the Microsoft Layoffs
Outside of game cancellations, there were also several studios that saw job cuts as a result of the Microsoft layoffs. These are also likely behind some of the unannounced game cancellations.
- Halo Studios — An unknown number of employees were affected.
- Sledgehammer Games — The Call of Duty support studio laid off some of its employees.
- High Moon — The Call of Duty developer also reduced its headcount.
- Raven Software — This is another Call of Duty developer hit by the layoffs.
- Turn 10 Studios — The Forza Motorsport series studio reportedly cut half its workers.
- King — The Candy Crush developer will reportedly lay off 10% of its staff.
- The Initiative — The studio will close down with the cancellation of its Perfect Dark game.
- Rare — Some employees have been cut as development of Everwild stops.
- ZeniMax Online Studios — Executive Matt Firor will reportedly leave the company.
- Blizzard — The company will move some employees to new jobs and cut others as support for Warcraft Rumble ends.
MSFT stock was up 1.33% as of Thursday morning, continuing an 18.52% year-to-date rally and a 5.03% increase over the past 12 months.
Is Microsoft Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Microsoft is Strong Buy, based on 30 Buy and four Hold ratings over the past three months. With that comes an average MSFT stock price target of $524.86, representing a potential 5.38% upside for the shares.
