Xbox cancels multiple games including ‘Perfect Dark’ remake

Microsoft has cancelled a number of games including the long-awaited remake of classic shooter Perfect Dark.

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Perfect Dark was released in 2000 for the Nintendo 64 as the spiritual successor to the iconic Goldeneye 007. A sequel Perfect Dark Zero launched on the Xbox 360 in 2005 before an updated version of the original followed in 2010.

In 2020, it was announced that Microsoft would be rebooting the franchise, starting with a remake of Perfect Dark that would be developed by two studios – Crystal Dynamics and The Initiative.

Last week, head of Xbox Game Studios Matt Booty confirmed via email that The Initiative would be shutting down and the seven years of work on Perfect Dark would be scrapped. The cancellation comes as part of wider changes at Microsoft that will see four per cent of its total workforce laid off, with a majority of those coming from the world of gaming.

It’s also been announced that Rare’s ambitious new IP Everwild has also been scrapped alongside other “unannounced projects”. It’s been reported that Project Blackbird, Zennimax’s planned successor to The Elder Scrolls Online, has also been cancelled despite executives being “blown away” by what they’d seen so far of the massively-multiplayer online game.

RIP Perfect Dark

Xbox has officially cancelled Perfect Dark and shut down The Initiative Studio.

Gameplay trailer from last year looked awesome with almost Dishonored-esque level design and variety.

Xbox is such a mess.pic.twitter.com/hADBaZ3BQq

— Synth Potato (@SynthPotato) July 2, 2025

“We have made the decision to stop development of Perfect Dark and Everwild as well as wind down several unannounced projects across our portfolio,” said Booty in his email.

“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.”

“Our overall portfolio strategy is unchanged: build games that excite our players, continue to grow our biggest franchises, and create new stories, worlds, and characters. We have more than 40 projects in active development, continued momentum on titles shipping this fall, and a strong slate headed into 2026,” he added.

The restructuring is the fourth wave of lay-offs made at Microsoft in the past 18 months. Following the news, a number of industry professionals blamed the lay-offs on Xbox Game Pass.” I think Game Pass is an unsustainable model that has been increasingly damaging the industry for a decade, subsidised by MicroSoft’s ‘infinite money’, but at some point reality has to hit. I don’t think Game Pass can co-exist with other models, they’ll either kill everyone else, or give up,” said Raphael Colantonio, founder of Arkane Studios.

In other news, Microsoft has confirmed what titles will be arriving on Xbox Game Pass this month.

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