A report confirmed by multiple sources reveals Microsoft’s Xbox Game Studios subsidiary The Initiative, tasked with reviving Perfect Dark, has ceased operations amid broader workforce reductions. The studio’s flagship title has been shelved permanently, with additional unannounced projects terminated across Xbox’s portfolio.

Internal correspondence from Xbox Games lead Matt Booty, obtained by journalists, states Rare’s Everwild and other undisclosed initiatives have also been canceled. This follows Microsoft’s announcement of over 9,000 job cuts across its gaming divisions. “These measures realign our priorities amid evolving industry demands,” Booty wrote, emphasizing Xbox’s ongoing focus on expanding established franchises and developing new IPs.

Booty’s message reiterated earlier comments from Xbox CEO Phil Spencer, assuring employees impacted by closures would receive severance and relocation aid. The closure of The Initiative halts its collaboration with Crystal Dynamics, which had been co-developing the Perfect Dark reboot.

Originally launched for Nintendo 64 in 2000, Perfect Dark became a cult classic, later spawning sequels that struggled commercially. The Initiative’s 2023 gameplay reveal had sparked optimism among fans, suggesting the title was nearing completion. Its abrupt cancellation leaves lingering questions about Xbox’s long-term strategy for reviving legacy franchises.

Today’s downsizing extends beyond The Initiative. Reports indicate Turn10 Studios (Forza Motorsport) faced 50% staff reductions, while Activision Blizzard teams including Raven Software (Call of Duty) experienced significant cuts. Microsoft maintains over 40 active game projects, with major releases slated through 2026.

The restructuring underscores ongoing turbulence in the gaming sector, with studios grappling with rising production costs and shifting market priorities. Fans of the Perfect Dark franchise now face an uncertain wait for the series’ potential revival under new leadership or external partners.