Xbox’s “AAAA” Perfect Dark Reboot Canceled, Developer Shutting Down

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The 2022-announced reboot of Perfect Dark by The Initiative has been called off, as confirmed by Microsoft. Moreover, The Initiative studio itself is being closed down.

According to reports from Windows Central and supported by Jason Schreier of Bloomberg, Microsoft has announced the cancellation of Perfect Dark and closure of The Initiative. This decision is part of a larger round of layoffs that are impacting approximately 4% of Microsoft’s workforce. This equates to around 9,000 employees being let go, with many of these job losses occurring across different gaming studios within the company.

Established in the year 2018 and situated in Santa Monica, this venture, renowned as a top-tier “AAAA” studio, was spearheaded by Darrel Gallagher, who previously led Crystal Dynamics. This team was composed of professionals with backgrounds from studios like Respawn, BioWare, Naughty Dog, and others. In the year 2021, it was announced that The Initiative would collaborate with Crystal Dynamics, creators of the latest Tomb Raider series, to contribute to the revival of Perfect Dark.

In 2024, during the Xbox Games Showcase, spectators were given their initial glimpse into the gameplay of Perfect Dark. The trailer suggested that Perfect Dark would be a first-person shooter with sim-like aspects, as Joanna Dark was depicted utilizing various gadgets, stealth tactics, and melee attacks to accomplish her tasks. The storyline hinted at a larger conspiracy for players to unravel, but no release date was specified for the game even after the gameplay demonstration.

According to a report just prior to the release of the trailer for Perfect Dark’s comeback, the remake of the first-person shooter spy game wasn’t doing well. Despite Crystal Dynamics stepping in to aid development, it seemed that the project hadn’t quite coalesced or reached its full potential.

Some popular games like Perfect Dark and those developed by The Initiative are among the games impacted by recent job cuts at Microsoft. At present, only The Initiative has been officially declared to be closing, but other studios such as ZeniMax Online (the developer of The Elder Scrolls Online), Blizzard, Turn 10 (responsible for Forza), and Raven Software (creators of Call of Duty: Black Ops 7) have also experienced layoffs.

In a private communication made public by Windows Central, Matt Booty – head of Xbox Game Studios – announced that Rare’s Perfect Dark, Everwild, and several other projects yet to be unveiled, including ZeniMax Online’s upcoming MMORPG, have been terminated as part of the job cuts.

In an email, Booty announced that we will no longer be working on Perfect Dark and Everwild projects, and are also scaling back several other unannounced projects. As a result, one of our studios, The Initiative, will be shut down. These decisions, along with other changes within our teams, are part of an effort to realign priorities and allocate resources for future success in the evolving gaming industry. We understand that each project and team represents years of hard work, creativity, and dedication.

In the past couple of years, Microsoft has been undergoing a series of job cuts. For instance, in 2023, they let go approximately 10,000 employees. After acquiring Activision Blizzard in 2024, they further reduced their workforce by an estimated 1,900 people. Additionally, that year saw the closure of four Bethesda studios, including Arkane Austin and Tango Gameworks.

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2025-07-02 21:09