Xbox Cancels Perfect Dark Reboot Amid Massive Layoffs; Check Details

Microsoft has confirmed that the Perfect Dark reboot has been canceled. The move is part of a larger internal restructuring that also includes the closure of The Initiative, the studio that was made to lead the game's development.

Perfect Dark was meant to be one of Xbox's key titles. It had been in the works for almost seven years. A gameplay trailer shown in 2024 had gained attention, but now, development has come to an end.

The End of The Initiative

The Initiative debuted in Santa Monica back in 2018 to reboot Perfect Dark, a game that was created by Rare. Darrell Gallagher, formerly a member of Crystal Dynamics, was leading the team. The studio had also partnered with Crystal Dynamics on the project. 

Matt Booty, head of Xbox Game Studios, sent a note that confirmed that the studio would close down and that the development of Perfect Dark will no longer continue. 

More Cancellations & Widespread Layoffs Across Microsoft Gaming

Other projects have been canceled too. Rare's game Everwild, which was delayed for years, is not going ahead anymore. Blackbird, a ZeniMax Online MMORPG project that started in 2018, also got dropped. A few unannounced games under Xbox Game Studios are getting shut down as well.

These cuts come with layoffs that affect around 9,000 workers. That's about 4% of Microsoft’s total staff. This marks the fourth big layoff in the gaming side over the past year and a half. Studios like ZeniMax (Fallout), King (Candy Crush), and Turn 10 (Forza Motorsport) had large parts of teams cut. Some reports mention up to half of some teams got let go.

Phil Spencer and Matt Booty Respond

Phil Spencer, head of Microsoft Gaming, sent a memo to employees:

“We are making these changes to better align our teams for success in an evolving industry… and to focus on strategic growth areas.”

Matt Booty also made a statement:

“We did not make these decisions lightly. Each project and team represents years of effort, imagination, and commitment. Our goal remains to create games that excite players while refocusing resources where they matter most.”

The Road Ahead for Xbox

Even with these changes, Xbox says their plans still are going on. Over 40 games are still being made, but that doesn’t include the State of Decay 3 or Clockwork Revolution. Xbox also mentioned stuff about releases in 2025 and 2026. The workers who got affected will get severance, help with finding jobs, and can try for other Xbox jobs too.

For fans, this means Perfect Dark is done. The 2024 demo showed a path with stealth and how levels were set up, and that gave people hope. Now, there’s no telling when Joanna Dark will come back, cause The Initiative isn’t around anymore.