Microsoft has cancelled spy shooter Perfect Dark and is shutting down The Initiative studio
As we have already reported, a wave of large-scale layoffs has started in Microsoft's gaming division, as a result of which about 9,000 employees will lose their jobs. This process is accompanied by the cancellation of a number of major projects and among them was the game that was supposed to be the flagship of Xbox - the reboot of Perfect Dark.
Here's What We Know
Perfect Dark was announced in 2020, and in 2024 the first gameplay footage of the ambitious spy action game was shown. Some insiders described the development as a "huge, drawn-out mess", which is why the creators from The Initiative studio were sent help in the form of Crystal Dynamics employees.
As we now know, that decision didn't work and the relaunch of Perfect Dark has been cancelled and The Initiative studio is shutting down, according to an internal letter from Xbox Game Content President Matt Booty, published by Windows Central:
We have made the decision to stop developing Perfect Dark, as well as wind down several unannounced projects in our portfolio. As a result, we are closing one of our studios, The Initiative. These decisions, along with other changes to our teams, reflect a larger effort to adjust priorities and focus resources to make our teams more successful in a changing industry. We did not make these decisions lightly, as every project and every team represents years of effort, creativity and dedication.
Our overall portfolio strategy has not changed: we create games that our players love, continue to develop our biggest franchises and create new stories, worlds and characters. We have over 40 projects in active development, we'll continue to release games this autumn, and there's a lot to look forward to in 2026.
For those directly affected - we're working closely with HR and studio management to provide support, including severance pay, help with transition and, where possible, opportunities to try out other teams.
To all of our studio staff: thank you. Your creativity and resilience continue to define who we are. I believe in the strength of our teams and the direction we are heading.
Source: Windows Central
