Perfect dark reboot was cancelled, Xbox developers turned off initiative, part of the devastating Microsoft layoffs

In trouble Perfect dark reboot Cancelled and Xbox Studio's program has been closed Devastating layoffs across Microsoft todaySources told IGN.

The demise of Perfect Dark is a part of Microsoft's rapid bloody therapy, with reports suggesting that more than 9,000 employees of the company will be out of work. Sources told IGN Rare Everwild was cancelled With the arrival of layoffs, British Legend Studios. Candy Crush Maker King and Bethesda's London offices also took a tough hit.

Matt Booty, head of Xbox Game Studios, confirmed that Everwild and Perfect Dark cancelled IGN and said the company is signing several unpublished projects in a memo sent to all Microsoft gaming staff and viewed by IGN.

Following Phil's notes, I would like to share more information about changes to the studio business unit.
We have decided to stop developing perfect dark and eternal development and have gotten rid of several unnotified projects in our portfolio. To do this, we are closing a studio, i.e. initiative. These decisions, along with other changes in our team, reflect broader efforts to align priorities and concentrate resources to build our teams in a changing industry landscape for greater success. We didn’t make these choices easily because each project and team represented years of hard work, imagination and commitment.

Our overall portfolio strategy has not changed: make games, inspire our players, continue to grow our largest franchise, and create new stories, worlds and characters. We have over 40 active development projects, with the title continued momentum this fall and a strong slate entering 2026.

For those who directly impact, we are working closely with HR and studio leadership to provide support, including severance, career transition assistance, and possible opportunities to explore the roles of other teams.

To everyone in our studio: Thank you. Your creativity and resilience continue to define who we are. I believe in the strength of our team and the direction we are on the road ahead.

– Matt

The perfect darkness is noticeable in its absence Microsoft's display cabinet in June 2025starred in a flashy new trailer a year ago. It shows how the first person shooter game plays, and the welcome return of the protagonist Joanna Dark.

The program is a studio that Xbox revolves in 2018 to bring Dark Perfect Dark to release, tombstone developer Crystal Dynamics. Perfect Dark made its debut on the N64 in 2000, and the company was developed by Rare, which survived today’s cull.

Xbox Boss Phil Spencer failed to confirm specific details in a memo sent to staff and reviewed today, telling staff that “any organizational transformation will be shared by your team leader in the coming days.”

The following information from Phil Spencer has been shared with all gaming teams today:

Today, we are sharing decisions that will impact colleagues in our organization. To position the game for sustained success and to focus on strategic growth areas, we will end or reduce work in certain areas of the business and follow Microsoft's leadership in removing management to improve agility and effectiveness. Out of respect for the people who are impacting today, your team leaders will share details of today’s notifications and any organizational transformation in the coming days.

I realize that these changes are when we have more players, games and game time than ever before. Our platform, hardware and gaming roadmap never looks more powerful. The success we are seeing is based on the difficult decisions we have made before. Now we have to choose the option to continue to succeed in the coming years, and a key part of this strategy is to prioritize the discipline that best opportunities. We will protect what is thriving and focus on areas with the greatest potential while meeting the company’s expectations of our business. This centralized approach means we can provide outstanding games and experience to generations.

Prioritizing our opportunities is essential, but that doesn’t reduce the importance of this moment. In short, we wouldn’t be where we are today without the time, energy and creativity of the person whose characters are affected. These decisions do not reflect the talent, creativity, and dedication of the people involved. Our momentum is not accidental – it is the result of years of hard work from our team.

HR works directly with affected employees to provide severance program benefits (aligned with local laws), including compensation, health insurance and job placement resources to support their transition. Employees who eliminate roles are encouraged to explore public positions in Microsoft games, where their applications will be reviewed first.

Thank you to all the people who shaped our culture, our products and our communities. We will deeply appreciate and respect all those who have contributed to this journey.

Phil

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