It has been reported that Everwilds, the upcoming original IP from Sea of Thieves studio Rare, has been cancelled, with the studio being affected by ongoing layoffs at Xbox.

The details:

On Wednesday, it was reported that Microsoft is making significant company-wide layoffs, impacting several areas of its gaming business, including ZeniMax and King, with the latter expected to lose 10% of its workforce, equating to 200 employees.
According to reports from VGC, Eurogamer, and Bloomberg's Jason Schreier, Rare is among the studios that have been directly affected by the job cuts, which have now resulted in the cancellation of its upcoming project, Everwilds. The title, which was first revealed in 2019, has been in the works for over a decade, with Microsoft Gaming CEO Phil Spencer stating that its development team was still working on the game and that he was happy with its progress.
Not much has been revealed about the project since its original reveal, but it was claimed in 2021 that its design had been rebooted and that veteran Rare designer Gregg Mayles was now overseeing development. Mayles has worked at Rare for several decades, working on titles such as Donkey Kong Country and Banjo-Kazooie during the company’s Nintendo days and staying post-Xbox acquisition, where he helped design Viva Piñata and Sea of Thieves.

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Rare has reportedly cancelled Everwilds amid Xbox layoffs