It has been confirmed that Microsoft has scrapped its reboot of Perfect Dark and shuttered its developer, The Initiative as part of its company-wide restructuring.

The details:

As reported by Windows Central and corroborated by Bloomberg’s Jason Schreier, California-based studio The Initiative is closing its doors as part of Xbox’s ongoing wave of layoffs, just seven years after it was established by former Crystal Dynamics head Darrell Gallagher. In an internal email to staff, Xbox Game Studios head Matt Booty stated that the company’s decisions ”reflect a broader effort to adjust priorities and focus resources to set up our teams for greater success within a changing industry landscape.”
With the studio’s closure, the development of the long-awaited reboot of classic FPS franchise Perfect Dark has also come to an end. The game was first announced in late 2020 but suffered from several internal development issues, such as several major figures leaving The Initiative, leading to Tomb Raider developer Crystal Dynamics providing additional assistance.
Perfect Dark was officially unveiled at Xbox’s Summer Showcase last year, giving fans their first glimpse at protagonist Joanna Dark sneaking around Cairo while taking down various enemies, performing parkour, and using a selection of high-tech gadgets. This came just months after it was reported by reputable sources that the game was in a “very rough state,” leaving many fans confused as to whether the demo was truly accurate to the state of the project at that time.

Other studios and projects affected by the Microsoft restructuring:

Rare has reportedly cancelled Everwilds as veteran developers exit the studio.
Around 10% of King's workforce will be let go from the company.

Microsoft shutters The Initiative and cancels Perfect Dark reboot amid company restructuring