Microsoft has laid off nearly half the staff at World's Edge, the studio that oversees the Age of Empires franchise, in the latest round of Xbox cuts.

The cuts are part of 268 job losses across Microsoft's Xbox business, according to TechSpot and other outlets. The studio has also been moved under Activision, and its next unannounced project was cancelled during the move.

"Our studio was reorganized to be under the Activision umbrella. As part of that reorg, our next project was cancelled and a large chunk of our studio was laid off," former senior software engineer Andrew Martz wrote on LinkedIn.

World's Edge normally oversees the Age of Empires brand while outside developers build the games. Former creative director Adam Isgreen was also let go, according to reports. Microsoft has not said what happens next for the franchise.

Why it matters: the future of one of PC gaming's oldest strategy series is now uncertain, with the cuts feeding Microsoft's reported target of 3,200 job losses this financial year.