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[Dr. Samuel Hayden]

Microsoft is closing down Xbox studio The Initiative, with Perfect Dark killed as well — joining Everwild and ZeniMax's new IP, and other unannounced projects

Microsoft is closing down The Initiative, after 7 years. The partnership with Crystal Dynamics will end, and "Perfect Dark" will be cancelled.

www.windowscentral.com

Earlier, we reported exclusively that Perfect Dark was on the chopping block as part of Microsoft's latest round of cuts. Now, we can confirm the sad news.

Today, Microsoft revealed broad layoffs hitting 4% of its global workforce, across every division at the company. Many of those layoffs are hitting Xbox, with staffers in various departments receiving notice today. Many of those affected include Xbox studio The Initiative, which is sadly being closed down.

Perfect Dark was set to be a revival of Rare's classic stealth IP from the early 2000s. The team at The Initiative was set up in 2018 with studio heavyweights including leader Darrell Gallagher, of Tomb Raider fame. Gallagher's former team at Crystal Dynamics was working together with Microsoft on Perfect Dark, and that partnership will now also conclude.

 

[Fake]

There is.

 

[Schachtier]

Bummer. I really liked the trailer.

 

[Buggy Loop]

 

[Ass of Can Whooping]

 

[Gripsx]

No fucking way

 

[Majima Everywhere System]

Shame, the latest footage from a year or so back made it look like a decent imsim, and with nostalgia you have a heluva drug.

 

[nial]

Pour one out for Chukhopops

 

[Judge Magister]

 

[Kacho]

That was the game I was looking forward to the most. Oh well.

RIP Xbox

 

[Robb]

 

[ADiTAR]

I heard Jade Raymond was about to produce it.

 

[HJuggernaut]

HAHAHAHHAAH I fucking knew it they wouldn't be able to pull it off. Besides nobody was interested in a new Perfect Dark. MS' biggest problem is that they greenlit games nobody cares about.

 

[Thick Thighs Save Lives]

Jeez... when it rains it pours.

 

[Artistic]

Terrible news.

 

[Punished Miku]

Must have still been a mess. What a disaster of a studio from start to finish. I liked both their imaginary trailers at least.

 

[tylrdiablos]

A shame the hard-work of the devs will never see the light of day.

 

[Baemono]

Welp worst Microsoft initiative

 

[Saber]

 

[Ass of Can Whooping]

I liked both their imaginary trailers at least.

Yeah, it was the thought that counts

 

[Alebrije]

Pre order cancelled.

 

[Fake]

 

[LordCBH]

 

[balls of snow]

What a hatchet job. Fuckin hell ms.

 

[Grildon Tundy]

Microsoft starting up/"buying out" companies only to shutter them reminds me of this:

 

[Joel Was Right]

sony please

 

[Simply Sami]

I can't feel sorry for this one. They were bought in 2018 and haven't even released a game. Wtf were they doing for 7 years?

 

[near]

Laura Fryer was on the money. While Jez Corden is fighting off a stroke right now.

 

[ShaiKhulud1989]

Perfect. Just perfect.

 

[Steve Holt]

Thinking of Riky right now

Phil has given us Perfect Dark and Quake. Just Banjo to go and it's time to build the statue.

 

[Skifi28]

If I were Ninja Theory I'd be pretty fucking scared after I was done with the PS5 port.

 

[Connificent]

 

[SEGAvangelist]

Should'a made Joanna pretty.

 

[bobbyphunk]

Idiot's, RIP Xbox possibly

 

[azertydu91]

Be careful, Sarah Bond has the license to kill ... studios.

 

[StreetsofBeige]

So Perfect Dark was in dev since 2018 when the studio formed?

Nice grift. 7 years of salary and noting to show except some trailers.

 

[Simply Sami]

Microsoft starting up/"buying out" companies only to shutter them reminds me of this:

They weren't bought. MS formed the studio in 2018.

 

[Loomy]

I guess we'll be getting a post about layoffs at Crystal Dynamics soon.

 

[KenaiPhoenix]

LoL

I know it sucks, but I really dont think it was going to be any good. The main "support" for this game was "remember Rare?!", but they havent been the same.

Some IPs are better to just leave behind, so it reminds as the "good games" and not "Good games that are now trash" (yes, im aware of the X360 Perfect Dark).

... Now do Halo, cancel and burn the studio.

 

[Saber]

Lost opportunity to say "to be chin upset"

 

[DonkeyPunchJr]

 

[Steve Holt]

Absolutely gutted about this news.

The OG was one of my favourite games growing up.

 

[Arsic]

 

[SHAKEZ]

Western development is a mess.

 

[Thick Thighs Save Lives]

Full memo from Booty:

Following Phil's note, I want to share more about the changes to the Studios business units.

We have made the decision to stop development of Perfect Dark and Everwild as well as wind down several unannounced projects across our portfolio. As part of this, we are closing one of our studios, The Initiative. These decisions, along with other changes across our teams, reflect a broader effort to adjust priorities and focus resources to set up our teams for greater success within a changing industry landscape. We did not make these choices lightly, as each project and team represent years of effort, imagination, and commitment.

Our overall portfolio strategy is unchanged: build games that excite our players, continue to grow our biggest franchises, and create new stories, worlds, and characters. We have more than 40 projects in active development, continued momentum on titles shipping this fall, and a strong slate headed into 2026.

For those directly affected, we are working closely with HR and studio leadership to provide support, including severance, career transition assistance, and where possible, opportunities to explore roles on other teams.

To everyone across our studios: thank you. Your creativity and resilience continue to define who we are. I believe in the strength of our teams and the direction we're taking on the path ahead.

 

[semiconscious]

this's aged beautifully:

 

[//DEVIL//]

well fuck me running... I really wanted to play a new perfect dark. i loved the N64 game >_>

This.. 50% of the Forza team is out... Rare seems to be out too....

RIP Xbox. You tried to make something with Blinx, but I guess that was it.

 

[cinnamonandgravy]

microsoft trying to do anything

 

[ILHASS]

Spencer is a disgrace to the industry

 

[blacktout]

Damm, I guess it really was in development hell. The vertical slice we saw a couple of years ago must have been mostly bullshit, because if the game was in anything resembling a playable state they probably would have pushed it out the door instead of cancelling it. Unless Microsoft decided it was more valuable to them as a tax write-off.