The news was initially confirmed in a statement signed by Brenda Romero and posted on X. “Last night, we learned that our publisher has canceled funding for our game along with several other unannounced projects at other studios,

These changes come at a time when we have more players, games, and gaming hours than ever before,” said Xbox head Phil Spencer in an email to staff.

Reports and rumors of massive layoffs at Xbox have been building since late last month, and the first blood has now been spilled. Bloomberg reports that Candy Crush maker King is cutting 200 employees,