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Two of the most exciting new Xbox games are cancelled by Microsoft

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Microsoft has cancelled two of its most exciting new video games as part of its latest round of job cuts.

The Initiative's Perfect Dark reboot and Rare's action-adventure game Everwild have both been cancelled, as Microsoft prepares to cut thousands of jobs across its entire business.

In more sad news, Perfect Dark studio The Initiative has been completely shut down as part of the cost cutting measures.

Xbox executive Matt Booty confirmed the news in a memo sent to employees.

"We have made the decision to stop development of Perfect Dark and Everwild as well as wind down several unannounced projects across our portfolio," the memo reads.

"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."

According to Booty, Microsoft still has 40 projects in active development, and a "strong slate headed into 2026".

In addition to shutting down The Initiative, Microsoft is reportedly cutting 70 jobs at Forza Horizon studio Turn 10, and has cancelled a new MMPRPG from Zenimax.

While we don't know too much about the Zenimax game, Perfect Dark gameplay was shown during the 2024 Xbox Showcase.

Everwild, meanwhile, was unveiled with a stunning trailer back in 2019, although the game was internally rebooted in the years that followed.

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