The anticipated development of Perfect Dark Reboot has been officially canceled following significant layoffs and the closure of its developer, The Initiative, under Microsoft’s Xbox division. This decision, reported by Insider Gaming, comes as the latest in a string of corporate restructuring moves impacting major studios within the gaming industry.
Perfect Dark Reboot Project Terminated Amid Xbox Layoffs
Multiple sources confirm that Perfect Dark Reboot has been shelved as part of a new wave of job cuts at Xbox. Alongside the termination of the project, The Initiative studio itself has been shuttered, signaling broader cost-saving measures at Microsoft. According to a memo obtained by Jez Corden of Windows Central, the cancellation aims to reallocate resources and realign priorities, with a goal to position first-party teams for greater success in a rapidly changing industry.
Crystal Dynamics Partnership with Xbox Ends
In addition to discontinuing Perfect Dark Reboot, Microsoft and Xbox announced the end of their collaboration with Crystal Dynamics, the studio known for the Tomb Raider series. Crystal Dynamics was previously involved in the development of Perfect Dark Reboot, but all joint projects between the two companies have now been halted.
Other Game Projects Canceled Amid Studio Closures
Perfect Dark Reboot is not the only victim of recent layoffs. Microsoft also announced the cancellation of Rare’s Everwild, the MMORPG codenamed ‘Blackbird’ from Zenimax Online, and other unannounced projects. Several Xbox subsidiaries—including King, Compulsion Games, Turn 10 Studios, ZeniMax, and Rare—have reportedly been affected by this wave of restructuring, with further impacts across divisions related to the Call of Duty franchise.
As of this writing, Microsoft has not issued a public statement regarding the layoffs, studio closures, or the canceled development of Perfect Dark Reboot. The situation highlights the shifting priorities and challenges facing large-scale video game production amid industry upheaval.