One of the games canceled following the most recent round of Microsoft layoffs was Perfect Dark, a quasi-reboot of Rare’s first-person shooter franchise that was being co-developed by The Initiative and Crystal Dynamics.
According to a report from Jason Schreier via Bloomberg on Tuesday, Perfect Dark was almost revived after being canceled, with Xbox and Crystal Dynamics owner Embracer Group reaching out to see if other publishers were interested in buying and finishing the game.
The report claims that a deal was nearly struck with Take-Two Interactive, but this deal eventually collapsed when all the parties involved were unable to figure out the exact long-term ownership of Perfect Dark.
As a result, Crystal Dynamics had its second round of layoffs this year.
Perfect Dark is a huge missed opportunity
The Initiative’s reboot of Perfect Dark was first announced back in 2020 with a CGI teaser trailer. From there, concrete information was sparse for years, though reports indicated that the game’s development was in trouble, with numerous staff leaving The Initiative over time.
In 2024, things seemed to finally be rounding a corner, with a gameplay trailer for Perfect Dark shown during the Xbox Games Showcase.
The footage showed agent Joanna Dark in pursuit of a target across a high-tech, futuristic version of Cairo, with stealth-oriented weapons and spy-style melee takedowns, while the level design and use of the environment seemed reminiscent of immersive sims.
No release date or window was announced, but there was a clear, consistent vision for a game that had me quite interested.
All of that was cut short in July, when we learned that (among many other game cancellations and teams being cut) The Initiative was being closed and work on Perfect Dark would cease.
What could have been
I’m admittedly curious about what the details would’ve been for this agreement, and I can’t be too surprised that it didn’t work out, even if it would’ve been fantastic for more people to not lose their jobs and have the chance to keep working on this game.
It’s worth noting that Microsoft has allowed certain studios to spin out in the past, with Toys for Bob leaving Activision and almost immediately entering a publishing agreement for a new game with Xbox Game Studios.
Meanwhile, after initially being closed, Tango Gameworks was then revived and sold to Krafton alongside the Hi-Fi Rush IP. As a result, this team does live on, and is currently working on an unannounced action game that is likely Hi-Fi Rush 2.
Of course, the timing of this situation is also not lost on me, with Take-Two Interactive recently holding layoffs at BioShock developer Cloud Chamber, with more than 80 staff from the team being cut.
Former Blizzard Entertainment head of Diablo, Rod Fergusson, is now overseeing the studio as work continues on the next BioShock game. The game has also reportedly been delayed from its prior internal release window of late 2026 or early 2027. Still, it remains in development.
Take-Two Interactive also continues to allow Ken Levine and Ghost Story Games to work on Judas, a game that the company previously stated would be out before March 2025. There is no release date as yet, though a recent update did dive into more of the game systems and share new key art.
At the end of it all, I’ll just echo my prior thoughts that this entire situation is disheartening to watch. Perfect Dark was my most-anticipated game from Xbox, now it’s gone.
RIP (again), Perfect Dark.
