And all of this is after more layoffs and shutdown 18 months ago which closed Arkan Austin, Alpha Dog Games and the developer of Xbox’s best game in a while, Hi-Fi Rush’s Tango Gameworks, which had to be saved by another company.

M icrosoft is canceling its Perfect Dark and Everwild games as part of sweeping cuts to its Xbox division. Matt Booty, Xbox president of game content and studios, revealed that Microsoft will be closing The Initiative, the studio behind Perfect Dark, in an internal memo to Xbox employees today.

Rare's fantasy title Everwild has also been cancelled. Although announced in 2019, the game had a troubled development history, reportedly restarting from scratch in 2021 and being in development for approximately 10 years. Rare itself will not be closed.