Microsoft has significantly scaled back its Xbox division, initiating widespread layoffs that have resulted in the closure of The Initiative, the studio behind the Perfect Dark reboot. Consequently, the Perfect Dark project has been cancelled.
British developer Rare has also been impacted, with their action-adventure game, Everwild, facing cancellation. Further cuts have hit ZeniMax Online Studios, leading to the cancellation of an unannounced MMO project.
These measures represent a considerable restructuring within Microsoft’s gaming ecosystem, impacting both first-party studios and acquired developers. This marks the latest in a series of job cuts across the company, signaling a shift in strategy and resource allocation within the Xbox division.








