Perfect Dark Cancelled, The Initiative Shut Down


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