Yesterday we reported that Microsoft had shut down The Initiative, and cancelled what was to be its first project, a reboot of Perfect Dark. Today there’s a new detail to that news that adds a new spin on everything that we thought we knew.
But to paint this picture completely, we need to roll the clock back to last year. In the build up to 2024’s Xbox Games Showcase, rumors were swirling that the Perfect Dark reboot was in a poor state, even after Microsoft brought in Crystal Dynamics to help in development. Those rumors seem to come to an end when a new rumor emerged that Perfect Dark was not actually in ‘development hell’, and that it would be shown in the Xbox Games Showcase.
And this is exactly what happened, getting everyone buzzing on the immediate switch to a photorealistic look, as well as a thematic shift with a wholly original story and a new look for Joanna Dark. Lifelong Perfect Dark fans suddenly had hope for their franchise, and of course, we all got the impression that Microsoft Gaming really was finally getting their affairs in order.
Shortly after we learned that Perfect Dark was cancelled and The Initiative was shut down, Kotaku editor Ethan Gach shared this on Bluesky:
The Perfect Dark sizzle reel at last year’s Xbox showcase looked awesome. Someone at the time also told me it was basically fake. This was a joint project with Crystal Dynamics, a studio that’s also struggling with Tomb Raider.
We learned of the game’s closure and the studio’s shutdown from an internal email by Matt Booty that went public, thanks to Windows Central. Booty wrote this:
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 decisions, along with other changes across our teams, reflect a broader effort to adjust priorities and focus resources to set up our teams for greater success within a changing industry landscape. We did not make these choices lightly, as each project and team represent years of effort, imagination, and commitment.
When Microsoft first established The Initiative in 2018, it was a dream team comprised of many veterans across Bioware, Naughty Dog, Santa Monica Studio, and Rockstar, all coming together in the company’s first developer based in Santa Monica. Leading the team was Darrell Gallagher, a former studio head of Crystal Dynamics himself. Given the long rumors of troubled development, one could argue that Microsoft should have chosen to cut their losses much earlier, but we don’t welcome any news of layoffs or studio closures. We wish the best for the developers at The Initiative and hope they can find placement back in the video game industry.
