Microsoft has stopped growth on two major Xbox game projects, perfect dark and Everwild, and the perfect dark, is closing the studio behind The Initiative. The step is part of the broad pruning affecting about four percent of Microsoft’s global workforce.
Studio closed to cancel the game
The decision was confirmed in a memorandum by the mats, which was the head of the Xbox game studio. According to Memo, the initiative was closed by the cancellation of perfect dark and Everwild. The robbery also mentioned that several other undeclared projects would be injured in Microsoft’s gaming portfolio, the Wage.
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The initiative was created by Xbox in 2018 with the target of reviving the correct dark series. The game was to be co-developed with crystal dynamics, which is known for the tomb raider series. Perfect Dark, an first-person shooter, originally developed by rare for Nintendo 64 in 2000, showed the first gameplay of the reboot shown in 2024. However, the game did not appear in Microsoft’s June 2025 showcase, where it was expected to present prominently.
Evergreen development also stopped
A game Everwild by Rare announced in 2019 also faced the challenges of development. The project was resumed from scratches in 2021, but now it is also being canceled. Despite recent changes, rare remains active.
These cancellations come between a large pattern of trimming and restructuring within the Microsoft’s gaming division. Since obtaining activities for $ 69 billion, Microsoft has repeatedly cut jobs. The company kept 1,900 employees in January 2024, shortly after the Arcen Austin and Tango gamework closed, and reducing employees again by 650 employees in September 2024. In May 2025, Microsoft cut additional 6,000 jobs, which was equal to about three percent of its entire workforce. This recent round marks the fourth major pruning affecting the gaming operation of Microsoft in 18 months.
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Industry reports indicate that other Xbox studios may also face job cuts. For example, Raven is known for the call of duty franchise, and 10 Turn 10, Developer behind Forza Motorsport, is also rumored to reduce employees. These tricks come because Microsoft prepares the next generation to release the Xbox console and maintain a strong appearance in major gaming events such as Gamescom.
