Microsoft Shuts Down The Initiative, Cancels Projects

Microsoft is shutting down The Initiative, the Xbox studio behind the Perfect Dark reboot, amid layoffs impacting over 9,000 employees. Development on Perfect Dark and Rare's Everwild has been cancelled, alongside several unannounced projects, as part of a restructuring of Microsoft's gaming business. Rare will remain open despite the cancellation of Everwild, and The Initiative is the only Xbox studio confirmed to be closing in this round. These actions follow earlier closures of Arkane Austin and Tango Gameworks. Microsoft says over 40 projects are still in active development, and affected employees are being offered severance and support. The decisions have drawn criticism regarding Xbox's first-party strategy after major acquisitions.