Key Takeaways:
- Xbox leadership remains committed to long-term growth despite the cutbacks.
- Perfect Dark and Everwild have officially been cancelled, along with several unannounced Xbox projects.
- Xbox studio The Initiative has been shut down as part of internal restructuring.
In a sweeping internal shake-up, Xbox Game Studios has confirmed the cancellation of Perfect Dark and Everwild, along with several unannounced projects, as part of a broader strategic realignment. The announcement follows a fresh wave of layoffs across the Xbox division and the closure of one of its internal studios, The Initiative.
Matt Booty Confirms Studio Closure and Project Cuts
Xbox Game Studios head Matt Booty addressed the news in an internal memo obtained by Variety. In the statement, Booty revealed that development on Perfect Dark and Everwild has been halted, and that several other undisclosed titles are also being wound down. The Initiative, the studio behind Perfect Dark, is being shuttered completely.
“These decisions… reflect a broader effort to adjust priorities and focus resources,” Booty stated, emphasizing that the choices were not made lightly given the years of work invested in these projects.
Also read: Peak Co-Op Climbing Game Update Rolled Back After Bugs Surface in Version 1.6.a
Xbox Reaffirms Long-Term Portfolio Strategy
Despite the cancellations, Booty assured employees that Xbox’s core strategy remains intact: continuing to grow major franchises while developing new IPs. “We have more than 40 projects in active development,” he noted, with a “strong slate headed into 2026.”
Microsoft is reportedly providing severance and career transition assistance to affected employees, along with possible internal relocation options.
Industry Pressure Spurs Tough Decisions
The cancellations come amid a turbulent period for the gaming industry, with widespread layoffs hitting studios across the board. Xbox boss Phil Spencer also issued an internal memo earlier in the day, noting that these decisions were part of a broader effort to “focus on strategic growth areas” and secure long-term success for the company’s gaming division.
Conclusion
The surprise cancellations of Perfect Dark and Everwild mark a significant moment for Xbox’s first-party roadmap. While Microsoft continues to promise a strong future slate, the loss of these ambitious titles—and the closure of The Initiative—signal a more cautious, consolidated approach moving forward.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of GameDegen.com. Before making any investment decisions, you should always conduct your own research. GameDegen.com is not responsible for any financial losses.
