As previously reported by industry insider Jason Schreier, Microsoft has initiated another substantial round of layoffs, this time directly affecting multiple studios crucial to the Call of Duty franchise. The timing is particularly notable as this year's highly anticipated installment, Call of Duty: Black Ops 7, was recently showcased with a cinematic trailer during Xbox's summer event. Serving as both a follow-up to Black Ops 6 and a sequel to the beloved Black Ops 2 from 2012, the game is expected to reveal more details later this summer.

The layoffs, affecting approximately 9,000 positions across Microsoft, have hit Xbox's gaming division particularly hard. Prominent studios like Rare (Sea of Thieves) and ZeniMax Online (The Elder Scrolls Online) have suffered significant losses, including the cancellation of long-awaited projects such as Everwild and a new MMORPG. Turn 10 Studios, responsible for the Forza Motorsport series, has seen its workforce reduced by half, while The Initiative, Microsoft's newly established studio, has been completely shut down, resulting in the cancellation of its promising Perfect Dark reboot.

The Call of Duty franchise hasn't been spared either. Reports from Insider Gaming confirm that both Raven Software and Sledgehammer Games, two of Activision's core development studios for the series, have been impacted by these cuts. While exact numbers remain unclear as the situation develops, the timing is especially concerning given Raven's current collaboration with Treyarch on Black Ops 7, scheduled for release later this year.

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Despite these setbacks, industry analysts suggest that Black Ops 7 remains on track for its planned release, thanks to Activision's extensive network of support studios. However, many speculate that Microsoft's recent $68 billion acquisition of Activision Blizzard continues to influence these company-wide restructuring decisions. The irony isn't lost on observers that Activision, now under Microsoft's umbrella, is seeing layoffs at some of its most vital Call of Duty studios.

As one of the most devastating rounds of layoffs in Xbox's 24-year history, this restructuring has already resulted in multiple game cancellations and studio closures. The gaming community watches with concern as these developments unfold, hoping affected developers will find new opportunities quickly in an increasingly challenging industry landscape.