Microsoft have cancelled their Perfect Dark reboot and closed its development studio The Initiative in the course of this week’s scything sacrifices to their actually rather healthy bottom line. In a statement, head of Xbox Matt Booty also confirmed the cancellation of Rare’s Everwild, alongside “several unannounced projects”.
Booty says this “reflects a broader effort to adjust priorities and focus resources to set up our teams for greater success within a changing industry landscape.” For context, Microsoft announced net income of $25.8 billion for their most recent financial quarter, with the Xbox division also posting year-over-year revenue growth.
In an email to staff announcing the wider layoffs, Microsoft Gaming CEO Phil Spencer echoed Booty in styling them a question of “[making] choices now for continued success in future years”, and having “the discipline to prioritize the strongest opportunities.” A reported 9,100 people have been kicked to the curb across Microsoft’s operations, but as far as I know, no senior leadership salaries are being “disciplined”.
While depressing, the cancellation of Everwild perhaps isn’t surprising, given how long it had been in development, and Rare’s reported difficulties settling on a direction for the game. The Perfect Dark reboot was also a troubled project. Announced in 2020, it was still “in the earliest stages” of development in 2023, according to one report. But then came a June 2024 trailer that brought a smile even to Graham Smith’s careworn visage. I thought it seemed promising, too, albeit not much like the campy original for N64.
Best of luck to all those affected, and to all those who don’t yet know whether they’re affected. In other layoff news, Microsoft have taken the axe to a new MMO from Elder Scrolls Online developers ZeniMax Online Studios. There are probably more cancellations to be announced.
