Microsoft has canceled the Perfect Dark reboot and shut down The Initiative due to extensive layoffs affecting the Xbox division. This reorganization follows the acquisition of Activision Blizzard in October 2023, leading to nearly four percent of the workforce, over 9,000 employees, being laid off. British developer Rare's Everwild has also been canceled, along with an unannounced MMO from ZeniMax Online Studios. The layoffs impacted several prominent game developers, including King, Raven Software, Sledgehammer Games, and others in the Xbox division.
This is the fourth round of layoffs at Microsoft's gaming division since the start of 2024 - all taking place after the Xbox parent completed its acquisition of gaming behemoth Activision Blizzard in October 2023 for over $69 billion.
The layoffs have cut deep into the Xbox division, impacting Candy Crush developer King, Call of Duty makers Raven Software and Sledgehammer Games, Halo Studios, and Forza Motorsport developer Turn10 Studios.
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