Microsoft has canceled the perfect dark reboot and shut down its first-party studio the initiative as part of widespread layoffs across the company that has been made. The latest round of cuts have also impacted bristish development development The Elder Scrolls online development
Microsoft Job Cuts Impact Xbox Division
This is the fourth round of layoffs at microsoft’s gaming division since the start of 2024 – All Taking Place after the Xbox Parent Completed Its Accquisition of Gaming Behemoth BEHEMOTH ACTIVIN BOCH 2023 for over $ 69 billion. Microsoft’s latest reorganization efforts will see Nearly Four Percent of Its Total Workforce – Over 9,000 Employees – Laid off as the company plans to think its outrsal lays outrs.
As per bloomberg, the layoffs have cut deep into the xbox division, impacting candy crush development king, call of duty makers raven software and SLEDEAMMER GAMES, And Forza Motorport Developer Turn10 Studios. The number of people impacted in the gaming division is unchalar, but king is reportedly Reducing its staff by 10 percent – Around 200 Employees.
Microsoft’s Xbox Division Has Seen Four Rounds of Layoffs Since the activation blizzard-king acquisition
Photo Credit: Reuters
Perfect Dark, other projects canceled
The perfect dark reboot was revised at the game awards 2020 and was in the works at Santa Monica-Based The Initiative, with Tomb Raider Studio Crystal Dynamics Co-Developing. The Stealth Action Game was also received a first-target gameplay trailer at last year’s xbox games showcase but was conspicuous by its absence at the 2025 Edition of the Event Last Month.
The initiative, which was working on its first project, Had attracted veteran staff from Studios like Sony’s Santa Monica Studio, Naughty Dog and Rockstar Games. Last year in November, insomniac games’ Brian Horton, Who then Served as the Creative Director on Marvel’s Wolverine, reportedly left the Studio to Join the Initiative to Lead Perfect Dark.
In an internal email seen by windows center, microsoft said wedding it was cancelling perfect Dark and Everwild, Among Other Unannounced Projects, And Shutting Down the Initiative.
“We have made the decision to stop development of perfect dark and everwild as Wind as Wind Down Several Unannounced Projects Account Our Portfolio. Initiative, “Xbox Game Studios Head Matt Booty Said in the Email to Xbox Staff.
“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 green a changing Industry Lands Did not make these chooses lightly, as each project and team representation years of efforts, imagination, and commitment. “
Booty said Xbox’s overall strategy would remove unchanged and its “biggest franchises” would continue to grow. The Executive said Xbox Game Studios Had over 40 Projects in Active Development. Staff Members affected by the layoffs will be provided Severance and Career Transition Assistant. Microsoft will also attainst to place some laid-off employees in roles available across other teams in the Gaming Division, The Xbox Game Studios Chief Said in his email.
Before Booty’s Message Confirming Affected Studios and Projects, Microsoft Gaming Ceo Phil Spend Ceo Phil Spend Xbox Staff That The Division was Following Microsoft’s Lead In -Rad In Relations MANAGERIAL LAAD More Agile and Efficient and Ensure Success in the future.
“I recognize that these changes come at a time when we have more players, games, and gaming hours than ever before. Internal Memo Seen by Ign. “The success we’re seeing currently is based on decisions we’ve made previous. to prioritize the strongest options. “
At Xbox Games Showcase Last Month, Phil Spender Promised A Healthy Slate of Xbox Games in 2026
Photo Credit: Microsoft
Xbox cuts and change in strategy
Layoffs at Xbox have become a regular occurrence since Microsoft Finalized its takeover of call of duty maker activation, Increasing Scrutiny on the Company’s Gaming Division. Last year in January, Microsoft Laid Off Over 1,900 Xbox Employees, Including Staff at the then newly acquired Activation Blizzard Unit – About Eight Percent of the Overall Gaming Division Workforce. The Xbox Parent also canceled an unannounced survival game in the works at blizzard at the time.
In May 2024, Microsoft Announced it was shutting down three of its bethesda-owned game stickos, include Hi-Fi Rush Developer Tango Gameworks and Redfall Maker Arkane ARKANE ARKAN ARKAN ARKANE AUCTIN “Priority Games”. The closures LED to “Significant Layoffs” at the Studios Affected. Tango was Later Acquired by Krafton, and the Studio confirmed last month that it had begun early work on its next project.
In September 2024, The Tech Giant Laid off 650 Employees at the Xbox Division to Rein in costs following the acquisition of activation. Since the company closed the biggest deal in gaming history, it has also shifted its core xbox strategy to de-mephasize the home console and prioritise xbox services like game pass and cloud gaming. In 2024, Microsoft Alaso Began Releasing Its First-Party Xbox Exclusives New and old, on Sony’s PS5.
Xbox, however, is not turning away from the hardware business. Last month, the company announced it had signed a multi-yaar agrement with amd to co-detergle chips for its slate of future devices, including the next-generations xbox creators. Microsoft said that its next-gene Xbox experience would not be locked to a single store or device, and it would focus on making windows “the number one platform for gaming”.
