Microsoft gaming CEO Phil Spencer says that Forza Motorsport hasn't been sent to the junkyard for scrap--that franchise will continue, but even Spencer doesn't know when.
Xbox has two racing franchises that have been operating in parallel with one another for years now: Forza Motorsport, which is Xbox's answer to Gran Turismo, and Forza Horizon, an offshoot series focused more on recreational racing and exploration. The latter, Horizon, is much more popular than the former, solidifying Microsoft's focus and taking away attention from the Forza Motorsport series. This is only temporary, and the Forza Motorsport franchise will continue out, but there's no optics on the next release.
Microsoft recently downsized its Xbox games unit, eliminating key positions and significantly reducing the staff at Turn10, the developers behind Forza Motorsport, with priority given to the more profitable Forza Horizon. This repositioning is happening for a number of reasons: Microsoft is merging Xbox consoles with Windows PCs in a radical transformational business strategy, and the company is also facing the rigors of tariff-choked economics. Both of these things are financially sensitive and require careful accounting. Also, Microsoft's board of directors, CFO, and CEO are currently pressing Xbox management to deliver a steep 30% profit margin--on this topic, CEO Satya Nadella recently said the "best way to innovate in gaming is to improve margins."
When asked by Japanese games publication Famitsu if Forza Motorsport was kaput for good, Xbox gaming CEO Phil Spencer replied in the negative, as most publishers are wont to do (big-name billion-dollar video game publishers will sometimes sit on IPs and franchises for many years, even decades, before releasing a new game).
"Regarding Forza Motorsport, we sometimes need to shift our focus to games that are released sooner. We understand the reaction many people had when we scaled back Turn10 Studios. Our current structure allows us this flexibility," Spencer said.
Microsoft has laid off thousands of workers as it continues to fully integrate artificial intelligence solutions and tools in all aspects of its business.
