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Take-Two Interactive was in talks to rescue Xbox’s canceled Perfect Dark reboot, but the negotiations fell apart, leading to layoffs at developer Crystal Dynamics. According to a Bloomberg report, discussions between Microsoft, Take-Two, and Crystal Dynamics owner Embracer Group broke down over deal terms. This resulted in job cuts at Crystal Dynamics last month, though the exact number of affected employees wasn’t disclosed.
Crystal Dynamics had been working on Perfect Dark alongside Microsoft’s The Initiative studio before the game was canceled in July. The Initiative was also shut down as part of Microsoft’s wider layoffs this summer. Perfect Dark was meant to be a remake of the classic spy shooter originally made by Rare. Microsoft first announced the project in 2020 and showed it off at last year’s Xbox Summer Showcase.
Bloomberg’s sources say Take-Two was ready to buy the game from Microsoft and fund its development, but the companies couldn’t agree on who would own the Perfect Dark brand long-term. Representatives from Embracer, Xbox, and Take-Two all refused to comment on the matter. Microsoft confirmed major layoffs this summer that affected around 4% of its workforce – roughly 9,100 employees across all departments, including gaming divisions.
After Xbox canceled Perfect Dark in July, the development teams were given a chance to find new funding. Crystal Dynamics and The Initiative spent two months looking for a publisher and held talks with several companies. While Take-Two showed interest in funding the project, the deal ultimately couldn’t be completed
