➀ Microsoft announced the closure of The Initiative, a first-party studio, and the cancellation of the Perfect Dark reboot. The studio was initially announced in 2019 as a quadruple A studio but was downsized and partnered with Crystal Dynamics. The Perfect Dark reboot has been cancelled, and it is unclear if Microsoft will attempt another revival. ➁ Xbox Studios head, Matt Booty, explained the decisions as part of a broader effort to adjust priorities and focus resources. ➂ The closure and cancellation come after the release of a fake trailer for the game, indicating that the project was not progressing as expected.