According to Jason Schreier of Bloomberg, Take-Two’s negotiations with Microsoft and Embracer (owner of Crystal Dynamics) to finance and publish the canceled Perfect Dark reboot fell through due to disagreements over franchise ownership.
Staff Cuts at Crystal Dynamics
The failed deal led to layoffs at Crystal Dynamics, with employees let go after the project’s cancellation. The studio had joined as co-producer alongside The Initiative.
Project Cancellation
Perfect Dark was The Initiative’s flagship project, with a gameplay video unveiled in 2024. Microsoft officially axed the project in July 2025, shutting down The Initiative amid layoffs, as ownership rights became a major sticking point.
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