Microsoft confirmed on Wednesday (2) the cancellation of Perfect Dark's Reboot and the closure of The Initiative studio, responsible for the project. The decision is part of a new phase of restructuring the company's Game Division, which aims to redirect investments and optimize resources in an increasingly competitive market.
The announcement was revealed through an internal email sent to employees by Matt Booty, head of Xbox Game Studios, and reflected by the Windows Central website. In addition to Perfect Dark, other unnamed titles were also closed, including the Everwild project.
Project reduction is part of global strategy
According to the internal statement, the decision is aligned with a strategic movement to reduce risks and focus efforts on higher -return franchises. Thus, the closure of The Initiative studio represents the end of a team that was born with the proposal to create innovative games under the Xbox seal.
Also according to Booty, more than 40 titles are still in active development, and the company plans to reinforce the catalog with scheduled releases for the second half of 2025 and the following year. Nevertheless, the cutting of projects and studios signals a moment of instability even among consolidated industry companies.
The email also highlighted Microsoft's commitment to employees affected by the decision. The company claims to be offering adequate terminations, supporting career transition and internal opportunities on other teams to minimize the impacts of layoffs.
"Each project and team represent years of effort, imagination and commitment. These decisions were not made lightly ," said Booty.
A significant loss to the gamer community
Microsoft announced Perfect Dark's reboot in 2020 and aroused high expectations, especially for rescuing a classic Nintendo 64 franchise. In addition, the new project was proposed to present an agent Joanna Dark reimagined in a modern universe, with a deeper narrative and a focus on stealing action.
The closing of the game leaves the franchise's destination, which has not received a new version for years. Thus, the partnership with Crystal Dynamics, a studio known as Tomb Raider, will not continue.
Cut trend follows in the game sector
The closure of The Initiative and the end of the Perfect Dark project add up to a long list of layoffs and restructuring. By 2024 and 2025, companies such as Sony, Ubisoft, Epic Games and Microsoft itself had already promoted significant cuts.
In 2024 alone, Microsoft resigned more than 9,000 employees in various divisions. Reflecting a forced adaptation to the new industry scenario, which deals with increasing costs of production and changes in consumer behavior.