What we know so far: World's Edge, the Microsoft studio that oversees the Age of Empires franchise, has lost nearly half its staff in the latest round of Xbox layoffs. The cuts coincided with Microsoft's decision to place the studio under Activision. Former employees also said the studio's next project was canceled during the transition. The moves raise questions about World's Edge's future role and the direction of Age of Empires under Activision.
"Our studio was reorganized to be under the Activision umbrella," former senior software engineer Andrew Martz said in a LinkedIn post. "As part of that reorg, our next project was canceled and a large chunk of our studio was laid off. I was part of that layoff."
The layoffs are part of 268 job cuts across Microsoft's Xbox business. They contribute to the company's projected target of 3,200 job losses during the current financial year.
World's Edge has played a different role from a conventional game-development studio. It has overseen the Age of Empires brand and worked with outside developers on new releases, expansions and ports. That setup has allowed Microsoft to maintain several games in the series at once, including remasters of older titles and newer releases for consoles.
– Pirat_Nation 🔴 (@Pirat_Nation) September 22, 2026
Relic Entertainment, for example, was the main developer of Age of Empires IV. World's Edge helped guide the project as the franchise's steward. Age of Empires IV arrived on PC in 2021 before later coming to Xbox and PlayStation.
The layoffs mean it's unclear what happens next for the franchise. Microsoft has not detailed World's Edge's plans under Activision or said what the canceled project was. It is also unclear how much of the studio's work will remain focused on Age of Empires.
Adam Isgreen, World's Edge's former studio creative director, said many longtime employees were affected. Isgreen had spent 16 years working on Age of Empires, including his time at World's Edge.
"I am of course disappointed that this is the way the time with World's Edge and Age ends for myself and many of my talented teammates that were also impacted – we had some great plans for what's next," Isgreen wrote. "I hope the team that remains can rise to the occasion down the line."
The Age of Empires series has continued to expand beyond its original PC audience. Modern releases have had to support online multiplayer, regular updates, console controls and different hardware platforms, while maintaining the core systems that define the games: resource gathering, base building, large-scale unit control and civilization-specific strategies.
That work is spread across several teams and partners. World's Edge has been responsible for keeping the franchise's games and content aligned, even when another studio handled most of the development. A smaller staff could make that job more difficult, especially if Microsoft plans to pursue another major entry in the series.
The reduction comes as new Age of Empires content continues to arrive. Viking Sagas, the latest downloadable expansion for Age of Empires II: Definitive Edition, just launched. It adds three civilizations and 15 single-player campaign scenarios.
Another former World's Edge employee, lead principal software engineer Greg Snook, said he was informed of his departure while on vacation.
"'It was nice working with you' was not a message I expected to get while on vacation," Snook wrote. "Like many others, I was cut loose from Microsoft today. Turns out my last day with building access is also my exact 25-year hire anniversary."
For now, the fate of World's Edge under Activision remains uncertain. The studio still has a major franchise attached to it, but the layoffs and project cancellation suggest its role inside Microsoft's gaming organization has changed significantly.