Perfect Dark Reboot Canceled: Microsoft Closes The Initiative Amid Studio Layoffs

Perfect Dark Reboot Canceled as Microsoft Shuts Down The Initiative Amid Mass Layoffs Perfect Dark, the iconic Nintendo 64 shooter developed by Rare and released in 2000, recently reached its 25th anniversary on May 22, 2025.

Over the decades, the franchise has enjoyed a prestigious legacy, first redefining the first-person shooter genre on Nintendo platforms and later gaining a devoted following through its innovative gameplay and narrative.

Originally esteemed for broadening the Nintendo 64’s reputation beyond family-friendly experiences, the game solidified Rare’s place as a highly creative and influential game developer. In 2020, Microsoft announced a highly anticipated reboot of the Perfect Dark franchise at The Game Awards, generating excitement for the return of protagonist Joanna Dark to modern consoles, specifically the Xbox Series X|S.

The initiative was handled by The Initiative, an internal Microsoft studio established to revitalize legacy brands.

While early footage debuted at the 2023 Xbox Games Showcase, updates on the game’s progress remained scarce, and fans eagerly awaited further details.

Despite ongoing public assurances from Microsoft that development was on track, the reboot’s future was always shadowed by reports of production challenges and delays. On June 2024, Windows Central confirmed that the Perfect Dark reboot has officially been canceled.

As part of sweeping changes and workforce reductions impacting 9,100 Microsoft employees, the company has also closed The Initiative—the studio responsible for the reboot.

An internal memo from Matt Booty, head of Xbox Game Studios, informed staff that development on Perfect Dark and Rare’s Everwild, alongside other unannounced projects, had ceased.

The Initiative is the only studio to be completely closed as part of these recent moves, although other Xbox Game Studios divisions also experienced significant layoffs. In the memo, Booty explained: “We have made the decision to stop development of Perfect Dark and Everwild as well as wind down several unannounced projects across our portfolio.

As part of this, we are closing one of our studios, The Initiative.

These choices were not made lightly, as each project and team represent years of effort, imagination, and commitment.

This action is part of a broader effort to adjust priorities and focus resources, ensuring greater success for our teams within a changing industry landscape.” The original Perfect Dark played a significant role not only in evolving first-person shooters for the Nintendo 64 but also in expanding the genre’s reach on consoles.

Rare’s subsequent evolution led to further hits, but the legacy of Perfect Dark continues to resonate across the gaming industry.

While Microsoft’s efforts to revive the franchise have come to an end amid studio closures and shifting corporate strategies, Perfect Dark’s influence endures through its impact on game design, storytelling, and the reputations of developers like Rare. For more information and the full memo, readers can visit Windows Central, the outlet that first reported on the cancellation.

As the gaming industry navigates evolving business priorities and economic pressures, this story underscores the broader challenges facing developers and publishers of classic franchises on modern platforms.

Rare Microsoft Perfect Dark The Initiative Xbox Game Studios Everwild Windows Central Joanna Dark Xbox Series X Game Awards Matt Booty