Microsoft has confirmed the closure of its first-party Xbox studio The Initiative, along with the cancellation of Perfect Dark, Everwild, ZeniMax’s MMO Blackbird, and other unannounced projects. This move is part of a broader layoff wave affecting 4% of Microsoft’s global workforce, with over 15,000 job losses in 2025 alone despite the company reporting record profits. The cuts send a strong message about the challenges facing AAA development - even with the backing of one of the world’s most powerful tech firms...
