Perfect Dark Reboot Reportedly Canceled, Developer The Initiative Shut Down

The ongoing Xbox layoff and cancellation wave continues, and this time, it’s developer The Initiative and its long-awaited Perfect Dark reboot in the crosshairs, it seems.
According to a report by Windows Central, an internal email sent to Xbox employees by studio head Matt Booty confirms the cancellation not only of Perfect Dark, but also of Rare’s Everwild, which was reported yesterday as part of a massive wave of Microsoft layoffs.
Booty’s email also confirms the closure of The Initiative, which, along with the project cancellations, is intended to “reflect a broader effort to adjust priorities and focus resources to set up our teams for greater success within a changing industry landscape”. Yep, it’s that kind of phrasing again.

According to Windows Central, “everything shown in the recent Xbox showcase from June” is safe from cancellation, including games like inXile’s Clockwork Revolution and Double Fine’s Keeper, among others.
However, it does appear that Forza Motorsport developer Turn 10 Studios was hit by this sweeping Microsoft layoff wave, with over 70 employees at the studio reportedly being let go.
As a reminder, Turn 10 is responsible for Forza Motorsport, but not for Forza Horizon; that honor goes to Playground Games, which is, as far as we know, safe from these layoffs, as is next year’s Fable reboot.
Of course, these things can change on a dime; Perfect Dark got itself a gameplay reveal during last year’s summer showcase period, and a little over a year later, the project is no more. Let’s hope Fable and other upcoming Xbox games, as well as their developers, can escape further cuts.
Perfect Dark‘s development appears to have been difficult, to say the least. Back in 2021, Crystal Dynamics joined the project as a co-developer, and the following March, it was revealed that The Initiative was hemorrhaging staff, with many blaming slow progress on the game and a lack of creative freedom for their departure.
However, thanks to the gameplay footage released last year, the reboot appeared to be back on track, which makes this decision’s timing even more baffling.
Completely unrelatedly, back in April, Microsoft announced a 13% jump in Q3 revenue over the same period the previous year, with net income also up by 18%. Dire figures like that really show the necessity of laying off thousands of employees and closing studios, I’m sure you’ll agree.