Microsoft is implementing widespread layoffs impacting up to 9,000 employees, significantly affecting its Xbox division. Several studios face closures and game cancellations, including Rare's Everwild and The Initiative's Perfect Dark reboot.

The Initiative, the Xbox studio developing a modern reimagining of Perfect Dark, is being shut down, and development of the game is ending. As first reported by Windows Central, the studio's closure is part of major cuts Microsoft is making across its business,

Xbox's Perfect Dark reboot, first announced in 2022, has been canceled. Its developer, The Initiative, is also shutting down, Microsoft has confirmed.