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Turn 10 Studios was not officially announced as closed, but reports in July 2025 said roughly half of the studio was affected by Microsoft’s Xbox layoffs. The longer-term consequence became clearer in December 2025, when Forza said Forza Motorsport would receive no new cars, tracks, features, or regular bug fixes. Its servers, special events, competitions, and selected content rotations would continue, while Turn 10 shifted significant attention to Forza Horizon 6.
The short version
- Microsoft announced approximately 9,000 layoffs—about 4% of its workforce—in July 2025.
- Reporting attributed to Bloomberg’s Jason Schreier said around 50% of Turn 10 was affected. Microsoft did not publish an exact Turn 10 headcount or layoff figure.
- Turn 10 was not officially confirmed as shut down.
- Forza Motorsport was not officially canceled on July 2, 2025. However, an official December update later confirmed the end of regular new development.
- Turn 10 remained involved with Forza Horizon 6, released for Xbox Series X|S and PC in 2026.
That makes “maintenance mode” a more accurate description of Forza Motorsport than “dead” or “canceled.”
| # | Preview | Product | Price | |
|---|---|---|---|---|
| 1 |
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Forza Motorsport – Standard Edition – Xbox Series X | $38.48 | Buy on Amazon |
| 2 |
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Forza Motorsport 6 – Xbox One | $56.87 | Buy on Amazon |
| 3 |
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Forza Motorsport 4 - Xbox 360 (Renewed) | $13.67 | Buy on Amazon |
| 4 |
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Forza Motorsport 5 (Renewed) | $26.16 | Buy on Amazon |
| 5 |
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Forza Motorsport 3: Prima Official Game Guide | $12.15 | Buy on Amazon |
What happened on July 2, 2025?
Microsoft announced a broad workforce reduction affecting approximately 9,000 employees, or roughly 4% of its workforce at the time. The cuts reached multiple Xbox and Microsoft Gaming organizations.
According to Windows Central’s reporting, citing Jason Schreier, about half of Turn 10’s staff was affected. Insider Gaming described the studio as “decimated,” while also noting that Microsoft had not publicly confirmed the precise Turn 10 figure.
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- Immerse yourself in over 500 real cars across 20 world-famous environments, including fan favorite locations and multiple track layouts, each featuring fully dynamic time-of-day with weather and unique driving conditions.
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- Race alongside your friends in adjudicated multiplayer events with tire and fuel strategy, a race weekend– inspired structure, and new driver and safety ratings.
- Compete with cutting-edge AI opponents, advanced physics, powerful assists, new damage and dirt accumulation systems, and photorealistic visuals with real-time ray tracing on-track.
That distinction matters. “Around half of the studio was cut” is a reported estimate—not a Microsoft-published headcount statement. The available evidence does not support converting the percentage into a specific number of employees.
Layoffs are not the same as a studio closure
A major reduction in staff can radically change a studio’s ability to develop games, but it does not automatically mean the company has legally or operationally closed the studio. Microsoft did not announce that Turn 10 had been shut down.
A former Turn 10 employee, Fred Russell, later claimed that the Forza Motorsport team was effectively no more. That is relevant testimony, but it was not an official Microsoft cancellation announcement. Similarly, the July layoffs created uncertainty about the game’s future; they did not, by themselves, prove that Forza Motorsport had been canceled.
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Microsoft Gaming leadership subsequently framed the cuts as part of a broader effort to prioritize strategic growth opportunities, reduce management layers, and end or reduce work in some areas. The public statements reviewed do not establish that poor sales, player numbers, or profitability caused the Turn 10 layoffs.
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Turn 10 is principally associated with the circuit-racing simulation series Forza Motorsport. Forza Horizon is principally developed by Playground Games, although the Forza teams operate within the same broader franchise and technology ecosystem.
- Forza Motorsport: track-based racing with a simulation-oriented focus and strong association with Turn 10.
- Forza Horizon: open-world racing associated primarily with Playground Games.
- Turn 10’s continuing role: official 2026 Forza material confirms that Turn 10 remained involved with Forza Horizon 6.
It is therefore too strong to say that Turn 10 disappeared or that every remaining employee was moved permanently to Horizon. The official evidence confirms involvement with Horizon 6, not a complete post-layoff staffing chart.
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The timeline from ongoing updates to maintenance mode
- October 2023: Forza Motorsport launched as an evolving racing platform intended to receive ongoing updates.
- August 2024: Turn 10 said it expected to continue delivering features, bug fixes, cars, and tracks through 2025 in its official Motorsport community update.
- January 2025: Update 16 delivered new content and improvements, according to the official release notes.
- June 2025: Turn 10 published another official Motorsport hotfix.
- July 2, 2025: Microsoft announced approximately 9,000 layoffs, while reporting indicated that roughly half of Turn 10 was affected. AP coverage documented the wider Microsoft reduction.
- August 7, 2025: Forza communications said Turn 10 and Playground Games would continue supporting Forza Motorsport and Forza Horizon 5.
- December 2025: The official Forza Year in Review clarified that regular new Motorsport development would end.
- 2026: Official Forza material confirmed Turn 10’s continued involvement with Forza Horizon 6.
What changed for Forza Motorsport?
The December 2025 announcement is the clearest evidence of the game’s status. Forza said that Forza Motorsport would receive:
- No new cars.
- No new tracks.
- No new features.
- No regular bug fixes.
That is a major reversal from Turn 10’s earlier public roadmap. It means players should not treat the game as an actively expanding live-service platform.
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However, the same official update said that the online servers would remain active. Special events and competitions would continue, and previously released Featured Tours and reward cars would be brought back monthly until the available content had been made accessible.
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- Never Race Alone: By learning how you and your friends drive, the power of the cloud delivers real human behavior
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In practical terms, the game remains playable with existing content and limited recurring activity. But players should not expect a normal stream of new systems, vehicles, circuits, or routine technical updates.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Confirmed facts versus unsupported claims
| Claim | Status |
|---|---|
| Nearly half of Turn 10 was affected by layoffs | Reported by multiple outlets, but not officially quantified by Microsoft |
| Turn 10 was closed | Not officially confirmed |
| Forza Motorsport was immediately canceled in July 2025 | Not confirmed |
| Forza Motorsport stopped receiving regular new development | Officially confirmed in December 2025 |
| The game’s servers and special events would continue | Officially stated |
| Turn 10 remained involved with Forza Horizon 6 | Officially confirmed in 2026 |
| Poor sales caused the layoffs | Not established by the available evidence |
What this means for players
If you already own Forza Motorsport, the immediate implication is not that the game vanishes. Existing multiplayer infrastructure and selected events were slated to continue, subject to Microsoft’s future service policies. The more important change is the loss of a regular development roadmap.
The game may still suit players who want circuit racing, its accumulated car and track library, and existing online features. It is a weaker fit for anyone buying it primarily for frequent new content, major feature additions, or a steady stream of bug fixes.
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Players seeking the more active growth direction within the Forza franchise should look to Forza Horizon 6, where official communications confirm Turn 10’s continuing involvement. That does not mean Motorsport can never return in some form, nor does it prove that Turn 10 has become a Horizon-only studio. It does show where the franchise’s active development emphasis moved after the layoffs.
Bottom line
Reporting that Turn 10 lost nearly half its staff was credible but not backed by a publicly disclosed exact headcount. The studio was not officially declared closed. The decisive player-facing consequence came later: Microsoft and Forza ended regular new development for Forza Motorsport while retaining servers, selected events, and content rotations. Turn 10 remained active in the wider franchise through Forza Horizon 6.
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