Perfect Dark Reboot Canceled and Xbox Developer The Initiative Closed as Part of Devastating Microsoft Layoffs

The troubled Perfect Dark reboot is canceled and Xbox workplace The Initiative has unopen down amid devastating layoffs sweeping crossed Microsoft today, sources person told IGN.

Perfect Dark's demise comes arsenic portion of what is accelerated becoming a bloodbath astatine Microsoft, with reports suggesting implicit 9,000 unit astatine the institution are acceptable to suffer their jobs. Sources person told IGN that Rare’s Everwild is canceled arsenic layoffs deed the legendary UK studio. Candy Crush shaper King is besides deed hard, arsenic is Bethesda’s London office.

In a memo sent to each Microsoft gaming unit and viewed by IGN, Matt Booty, caput of Xbox Game Studios, confirmed Everwild and Perfect Dark's cancelation and said the institution was winding down respective unnanounced projects.

Following Phil’s note, I privation to stock much astir the changes to the Studios concern units.
We person made the determination to halt improvement of Perfect Dark and Everwild arsenic good arsenic upwind down respective unannounced projects crossed our portfolio. As portion of this, we are closing 1 of our studios, The Initiative. These decisions, on with different changes crossed our teams, bespeak a broader effort to set priorities and absorption resources to acceptable up our teams for greater occurrence wrong a changing manufacture landscape. We did not marque these choices lightly, arsenic each task and squad correspond years of effort, imagination, and commitment.Our wide portfolio strategy is unchanged: physique games that excite our players, proceed to turn our biggest franchises, and make caller stories, worlds, and characters. We person much than 40 projects successful progressive development, continued momentum connected titles shipping this fall, and a beardown slate headed into 2026.For those straight affected, we are moving intimately with HR and workplace enactment to supply support, including severance, vocation modulation assistance, and wherever possible, opportunities to research roles connected different teams.To everyone crossed our studios: convey you. Your creativity and resilience proceed to specify who we are. I judge successful the spot of our teams and the absorption we're taking connected the way ahead.- Matt

Perfect Dark was conspicuous by its lack during Microsoft's June 2025 showcase, having starred a twelvemonth earlier with a flashy caller trailer. It featured a look astatine gameplay for the first-person shooter, arsenic good arsenic the invited instrumentality of protagonist Joanna Dark.

The Initiative was a workplace spun up by Xbox successful 2018 to steer Perfect Dark towards release, with Tomb Raider developer Crystal Dynamics brought successful to support. Perfect Dark archetypal debuted connected the N64 backmost successful 2000, developed by Rare, which has survived today's cull.

In a memo to unit sent contiguous and reviewed by IGN, Xbox brag Phil Spencer failed to corroborate specifics, telling unit “any organizational shifts volition beryllium shared by your squad leaders successful the coming days.”

The pursuing connection from Phil Spencer was shared to each gaming unit today:

Today we are sharing decisions that volition interaction colleagues crossed our organization. To presumption Gaming for enduring occurrence and let america to absorption connected strategical maturation areas, we volition extremity oregon alteration enactment successful definite areas of the concern and travel Microsoft’s pb successful removing layers of absorption to summation agility and effectiveness. Out of respect for those impacted today, the specifics of today’s notifications and immoderate organizational shifts volition beryllium shared by your squad leaders successful the coming days.I admit that these changes travel astatine a clip erstwhile we person much players, games, and gaming hours than ever before. Our platform, hardware, and crippled roadmap person ne'er looked stronger. The occurrence we're seeing presently is based connected pugnacious decisions we've made previously. We indispensable marque choices present for continued occurrence successful aboriginal years and a cardinal portion of that strategy is the subject to prioritize the strongest opportunities. We volition support what is thriving and ore effort connected areas with the top potential, portion delivering connected the expectations the institution has for our business. This focused attack means we tin present exceptional games and experiences for players for generations to come.Prioritizing our opportunities is essential, but that does not lessen the value of this moment. Simply put, we would not beryllium wherever we are contiguous without the time, energy, and creativity of those whose roles are impacted. These decisions are not a reflection of the talent, creativity, and dedication of the radical involved. Our momentum is not accidental — it is the effect of years of dedicated effort from our teams.HR is moving straight with impacted employees to supply severance program benefits (aligned with section laws), including pay, healthcare coverage, and occupation placement resources to enactment their transition. Employees whose roles were eliminated are encouraged to research unfastened positions crossed Microsoft Gaming, wherever their applications volition beryllium fixed precedence review.Thank you to everyone who has shaped our culture, our products, and our community. We volition determination guardant with heavy appreciation and respect for each who person contributed to this journey.Phil

Microsoft has made a immense fig of cuts to its gaming concern since acquiring Activision Blizzard for $69 billion. It laid disconnected 1,900 unit successful January 2024, past made further cuts conscionable a fewer months aboriginal erstwhile it closed Redfall developer Arkane Austin and Hi-Fi Rush developer Tango Gameworks. In September 2024, Microsoft chopped a further 650 unit from its gaming business. And successful May this year, Microsoft chopped an eye-watering 6,000 staff, oregon 3% of its full workforce. Today's circular of layoffs is the 4th to deed Microsoft's gaming concern successful 18 months.

Speaking to IGN successful June 2024, Xbox brag Phil Spencer said: "I person to tally a sustainable concern wrong the institution and grow, and that means sometimes I person to marque hard decisions that frankly are not decisions I love, but decisions that idiosyncratic needs to spell make."

The cuts travel blistery connected the heels of Microsoft's confirmation that it plans to merchandise next-gen Xbox consoles, and has a beardown beingness astatine video crippled amusement gamescom.

Wesley is Director, News astatine IGN. Find him connected Twitter astatine @wyp100. You tin scope Wesley astatine [email protected] oregon confidentially astatine [email protected].