Xbox cancels Perfect Dark, shutters The Initiative as layoffs begin

Microsoft’s layoffs have extended into Xbox, according to internal memos. The cuts of 4% of the company’s staff are affecting the gaming divisions, including Xbox. As a result of these layoffs, Xbox has canceled the upcoming Perfect Dark game and is planning to shutter developer The Initiative. Xbox’s leadership didn’t specify how many employees are being laid off, but that studio leadership would share more details soon.

Xbox’s Matt Booty confirmed the layoffs in an internal memo, saying, “These decisions, along with other changes across our teams, reflect a broader effort to adjust priorities and focus resources to set up our teams for greater success within a changing industry landscape. We did not make these choices lightly, as each project and team represent years of effort, imagination, and commitment.”