Microsoft cancels the Perfect Dark reboot that blew us away last year, closes developer The Initiative

The layoffs sweeping across Microsoft today have claimed the anticipated Perfect Dark reboot that was announced in 2020, which a Variety report says has now been cancelled. The Initiative, the studio making the game, has also been closed.

"We have made the decision to stop development of Perfect Dark and Everwild as well as wind down several unannounced projects across our portfolio," Xbox Game Studios chief Matt Booty said in a memo sent to staff.

"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."

The Initiative was founded in 2018 and its debut project, Perfect Dark, was formally revealed in 2020 as a futuristic "eco sci-fi" shooter that's "not just about shooting." Development had reportedly hit some bumps in the road, and a release date was never announced, but a gameplay reveal trailer in 2024 knocked our socks off: PC Gamer's Ted Litchfield said "Perfect Dark is looking like it could be something special when it finally releases." That made its absence from the 2025 Summer Game Fest especially notable.

Microsoft announced today that it is laying off approximately 9,000 employees, with many of them coming from the company's gaming business. Along with the cancellation of Perfect Dark, it also cancelled Rare's Everwild and an unannounced MMO in development at Elder Scrolls Online studio ZeniMax, and imposed layoffs at both studios.