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A free scan shows the junk files, broken settings and background clutter dragging Windows down - then fixes them in one click.Free scan · Windows 10 & 11Microsoft’s July 2, 2025, Xbox changes ended development of the Perfect Dark reboot and Rare’s Everwild, closed the studio behind Perfect Dark, and wound down several unnamed projects. Xbox Game Studios head Matt Booty described the decisions as a portfolio reprioritization; the company did not identify every unannounced project. One project, ZeniMax Online Studios’ MMORPG known as Blackbird, was identified in press reporting, not in Xbox’s announcement.
What Xbox announced on July 2, 2025
In an internal memo reported by Windows Central, Xbox Game Studios head Matt Booty said development of Perfect Dark and Everwild would stop, several unannounced projects would wind down, and The Initiative would close. He said the changes reflected “a broader effort to adjust priorities and focus resources to set up our teams for greater success within a changing industry landscape.” Windows Central published the memo’s text on July 2, 2025.
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Booty said Xbox had more than 40 active projects across Xbox Game Studios at the time, and that the decisions had not been made lightly. That portfolio figure describes the memo’s July 2025 snapshot, not Xbox’s present-day project count. The memo did not state how many projects were being canceled or wound down.
Why was Perfect Dark canceled?
Xbox described the decision as part of its effort to adjust priorities and focus resources amid a changing industry landscape. It did not publicly provide a project-specific explanation for canceling the reboot, such as a development issue, budget figure, or sales forecast. The available explanation is therefore the portfolio-level rationale in Booty’s memo, rather than a detailed account of why this particular game was stopped.
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#1 Best Overall
- Single-player action - Perfect Dark Zero challenges players to guide Joanna Dark on her journey to become the Perfect Agent. The fully interactive world includes beautiful graphics and breathtaking special effects combined with XBox Live functionality to p
- Action-packed Storyline - As Perfect Agent Joanna Dark, the story is set years before the original Perfect Dark in this sci-fi thriller centered on espionage, conspiracy and a mysterious global conflict.
- Online play via XBox Live - Supporting up to 50 players online, Perfect Dark Zero has online action and flexibility. Perfect Dark Zero includes fully scalable environments and complete XBox Live support with tournaments, rankings and more.
- Variety Gameplay option - Choose between a story-driven single-player campaign and various multiplayer options including four-player split screen and cooperative action for infinite replayability.
- Single-player action - Perfect Dark Zero challenges players to guide Joanna Dark on her journey to become the Perfect Agent. The fully interactive world includes beautiful graphics and breathtaking special effects combined with XBox Live functionality to p
The Initiative was developing the reboot in collaboration with Crystal Dynamics. Windows Central reported the partnership would end when The Initiative closed; Game Developer also reported independently confirming the studio’s shutdown. Game Developer’s July 2 report said Microsoft declined to comment on specific studio closures and pointed to Booty’s memo.
What happened to The Initiative?
The Initiative, the studio behind the Perfect Dark reboot, closed as part of the July 2025 changes. Windows Central reported it had operated for seven years without shipping a game. The closure is specific to The Initiative: the announcement does not establish that other Xbox or Microsoft studios were shut down.
Rank #2
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- DARK SOULS II: SCHOLAR OF THE FIRST SIN - Prepare to Die again. The second installment of the series includes the base Dark Souls II plus all three DLCs: Crown of the Sunken King, Crown of the Old Iron King, and Crown of the Ivory King.
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Was Everwild canceled?
Yes. Xbox said development of Everwild would stop. Rare’s project had first been announced in 2019. The announcement did not give a separate reason for ending it beyond the broader portfolio reprioritization described in Booty’s memo. Windows Central’s July 2, 2025 report covered the cancellation.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Was ZeniMax’s MMORPG canceled?
Windows Central reported that an unannounced ZeniMax Online Studios MMORPG was among the projects being wound down. The outlet identified it as Blackbird, a fantasy MMORPG reportedly in development since 2018, and said it had previously been known as Kestrel. These project details come from press reporting: Booty’s memo referred to several unannounced projects but did not name Blackbird or publicly identify the MMORPG.
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Rank #3
- Single-player action - Perfect Dark Zero challenges players to guide Joanna Dark on her journey to become the Perfect Agent. The fully interactive world includes beautiful graphics and breathtaking special effects combined with XBox Live functionality to p
- Action-packed Storyline - As Perfect Agent Joanna Dark, the story is set years before the original Perfect Dark in this sci-fi thriller centered on espionage, conspiracy and a mysterious global conflict.
- Online play via XBox Live - Supporting up to 50 players online, Perfect Dark Zero has online action and flexibility. Perfect Dark Zero includes fully scalable environments and complete XBox Live support with tournaments, rankings and more.
- Variety Gameplay option - Choose between a story-driven single-player campaign and various multiplayer options including four-player split screen and cooperative action for infinite replayability.
Windows Central also reported that Blackbird was intended as a successor project as The Elder Scrolls Online aged. That description is likewise the outlet’s reporting, not a purpose Xbox stated in its memo.
What did the changes mean for employees?
Booty’s memo said affected staff would receive support including severance and career-transition assistance, with opportunities to explore roles on other teams where possible. Microsoft’s reported July 2025 reduction of 9,000 employees—described by Windows Central and Game Informer as 4% of the company’s global workforce—was a company-wide figure, not an Xbox-only headcount. Game Informer reported the figure on July 2, 2025.
How the July 2026 Xbox statement relates
In a separate statement dated July 6, 2026, Xbox said publicly announced first-party games or projects were not being canceled as part of that later round of reductions. That statement concerns a later restructuring; it does not say the 2025 cancellations were reversed or that these projects resumed development.
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