Microsoft confirms major studio closure and project cancellations
Xbox Game Studios head Matt Booty sent out an internal memo announcing some big changes. The company is shutting down The Initiative studio and stopping work on Perfect Dark and Everwild games. They’re also canceling several other projects that haven’t been announced yet.
In his message to staff, Booty explained these decisions are part of a bigger plan to focus resources better in today’s gaming industry. He said they didn’t make these choices easily since each project represents years of hard work from the teams.
The good news is Xbox still has over 40 games in development and plans to keep growing their biggest franchises. They’re also helping affected employees with severance packages and job placement assistance.
Booty thanked all the studio teams for their creativity and said he believes in the direction they’re heading. For workers who lost their jobs, the company is working with HR to find them new positions on other teams when possible.
This news comes after rumors were already circulating about Perfect Dark potentially being canceled. The studio closure affects dozens of developers who were working on what many hoped would be exciting new Xbox exclusives.