And all of this is after more layoffs and shutdown 18 months ago which closed Arkane 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.

Xbox Game Studios’ new Perfect Dark game — the project that was first revealed in 2020 as the debut title from internal studio The Initiative — has been canceled. Matt Booty, head of Xbox Game Studios, confirmed the game’s cancellation and the closure of The Initiative in a note to employees, according to a report from Windows Central.