"Perfect Dark" Reboot Scrapped as The Initiative Closes

[JamesG.]

Perfect Dark Reboot Cancelled and Xbox Developer The Initiative Closed as Part of Devastating Microsoft Layoffs
by Wesley Yin-Poole
July 2, 2025


The troubled Perfect Dark reboot is canceled and Xbox studio The Initiative has shut down amid devastating layoffs sweeping across Microsoft today, sources have told IGN.

Perfect Dark's demise comes as part of what is fast becoming a bloodbath at Microsoft, with reports suggesting over 9,000 staff at the company are set to lose their jobs. Sources have told IGN that Rare’s Everwild is canceled as layoffs hit the legendary UK studio. Candy Crush maker King is also hit hard, as is Bethesda’s London office.



In a memo sent to all Microsoft gaming staff and viewed by IGN, Matt Booty, head of Xbox Game Studios, confirmed Everwild and Perfect Dark's cancelation and said the company was winding down several unnanounced projects.

The cuts come hot on the heels of Microsoft's confirmation that it plans to release next-gen Xbox consoles, and has a strong presence at video game show gamescom.



Perfect Dark was conspicuous by its absence during Microsoft's June 2025 showcase, having starred a year earlier with a flashy new trailer. It featured a look at gameplay for the first-person shooter, as well as the welcome return of protagonist Joanna Dark.

The Initiative was a studio spun up by Xbox in 2018 to steer Perfect Dark towards release, with Tomb Raider developer Crystal Dynamics brought in to support.

Perfect Dark first debuted on the N64 back in 2000, developed by Rare.

https://www.ign.com/articles/perfect...rosoft-layoffs