Xbox has confirmed the closure of The Initiative and the cancellation of the Perfect Dark reboot, which was in development at the studio. Following the announcement, it was also confirmed that Xbox is no longer working with Crystal Dynamics on any projects.
According to a statement from the head of Xbox Game Studios, Matt Booty, the decision “reflect a broader effort to adjust priorities and focus resources to set up our teams for greater success within a changing industry landscape,” adding that “we did not make these choices lightly, as each project and team represent years of effort, imagination, and commitment”.
The studio closure and resulting layoffs are part of a broader cost-control and efficiency initiative by Microsoft, which has laid off approximately 9,000 employees or just under 4% of its global workforce. Microsoft’s gaming division, Xbox, was significantly affected by the global workforce cut.
The latest round of layoffs is the second major mass cut to have hit the tech giant after shedding 7,000 employees in May. The restructuring is expected to streamline management layers and adapt the company to rapid changes in the tech industry, especially with its rising investment in artificial intelligence.
The closure of The Initiative has continued to generate reactions across social media. One feeling that remained constant throughout all the reactions that we have seen is that of shock.
The Initiative showcased the Perfect Dark reboot at the Xbox Games Showcase 2024
The Initiative was founded in 2018 by Darrell Gallagher, former Crystal Dynamics boss, alongside several other veteran developers. They were working on a Perfect Dark reboot, which featured at the Xbox Games Showcase 2024.
Prior to its sudden closure, The Initiative hoped to “shape the future of narrative-driven games by leveraging the most innovative tech and talent” in the industry. During its recruitment process, the studio said they were “looking for collaborative problem solvers who want to dive into something new and create groundbreaking experiences” for players. According to their LinkedIn profile, The Initiative had fewer than 50 employees.
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GameBaba Universe spotted a post by one of the studio’s employees who relished the work they did on Perfect Dark. Principal Writer, Nicole Phillips, posted that they have been impacted by the layoffs at Xbox, among many others.
“I couldn’t be prouder of the work our team did at The Initiative and on Perfect Dark,” Phillips wrote on LinkedIn. “I was honored to be there for six years and watched the team build a new studio together from the ground up — and re-imagine a franchise that became something truly special. We loved the world we were making and were so excited to share it with you all.”
How did you receive the news that several Xbox studios had either laid off employees or shut down? Share your thoughts in the comment box below.
