Microsoft Shuts Down The Initiative, Cancels Perfect Dark Reboot and Everwild

Big news from the world of Xbox! Microsoft has officially canceled the highly anticipated Perfect Dark reboot and decided to shut down its studio, The Initiative. This move comes alongside the cancellation of another major project, Rare’s Everwild, and is part of a broader restructuring following mass layoffs in Microsoft’s gaming division. If you were hoping to see Joanna Dark in action again, it looks like you’ll have to wait a lot longer — or maybe forever.
- Microsoft cancels the Perfect Dark reboot and Everwild
- The Initiative studio is shutting down
- Mass layoffs hit Xbox Game Studios
- No new Perfect Dark game coming anytime soon
Xbox Restructures: Projects Canceled, Studio Closed
According to a report from Windows Central, Matt Booty, head of Xbox Game Studios, informed employees about these tough decisions. The message was clear: “We have made the decision to stop development of Perfect Dark and Everwild as well as wind down several unannounced projects across our portfolio,” Booty stated. “As part of this, we are closing one of our studios, The Initiative. 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.”
Perfect Dark: A Reboot That Never Happened
The Perfect Dark reboot was first shown off during The Game Awards in 2020, promising a fresh take on the classic Rare franchise. The Initiative, a new internal Xbox studio based in Santa Monica and led by Darrell Gallagher (ex-Crystal Dynamics), was behind the project. Hype was high, especially after the game was re-revealed in 2024, with promises of ecological sci-fi themes and a near-future war over advanced technology.
What Was the Plan?
Booty had previously described the gameplay as a mix of stealth, parkour, high-tech gadgets, and classic firearms. Players would step into the shoes of Joanna Dark to prevent global disaster, with the game blending first-person shooter, immersive sim, and stealth-action elements. Development was a joint effort between The Initiative and Crystal Dynamics, aimed at both Xbox Series X and Windows PC. But now, all those plans are off the table.
End of an Era for The Initiative and Rare’s Everwild
The Initiative was founded by Microsoft in 2018 to deliver ambitious new experiences, but after four years and a lot of speculation, the studio is being closed down. Rare’s Everwild — another mysterious and much-anticipated title — is also scrapped. Both projects never received official release dates, and now, they’re joining the long list of games that never made it past the drawing board.
A Look Back at Perfect Dark’s Legacy
The original Perfect Dark came out on Nintendo 64 in 2000, earning a cult following. A remaster hit Xbox 360 in 2010, followed by a Game Boy Color spinoff and the prequel, Perfect Dark Zero, in 2005. For now, fans will have to stick to those classics and dream of what could have been.