In a startling development regarding the recent layoffs impacting Microsoft employees, yet another studio has regrettably found itself on the list of cuts.

As reported by Windows Central, sources informed the outlet earlier today that, in addition to the cancellation of Rare’s upcoming IP Everwild, The Initiative—the studio responsible for the latest installment in the Perfect Dark franchise—will also be shutting down, with its project being cancelled as well. Windows Central has now confirmed this information.

An internal message from Xbox Game Studios leader Matt Booty was shared with Windows Central, stating: “We have reached the decision to halt the development of Perfect Dark and Everwild, as well as phase out several unannounced projects throughout our portfolio. Consequently, we are closing one of our studios, The Initiative.” Booty continued: “These choices, alongside various changes across our teams, signify a wider initiative to realign priorities and direct resources to better equip our teams for enhanced success amid a shifting industry landscape.”

As per Windows Central, one of the “unannounced projects” was ZeniMax’s anticipated MMORPG named Blackbird, which was expected to follow in the footsteps of The Elder Scrolls Online. Citing their informants, Windows Central disclosed that all content presented during the recent Xbox Showcase in June is “secure.” Nevertheless, Kotaku’s Ethan Gach has also indicated that Undead Labs, the studio behind State of Decay 3, has been impacted by layoffs.

These reductions are part of a wider layoff spree today, as Microsoft trimmed its workforce by four percent, which translates to around 228,000 employees. It’s a heartbreaking reduction that seemingly validates Microsoft Game Studios co-founder Laura Fryer’s recent video regarding Microsoft’s tumultuous business strategy. In 2023, Microsoft’s largest layoff involved roughly 10,000 individuals. The firm has laid off nearly 15,000 employees in 2025.

In a recently uploaded video on her YouTube channel, Laura Fryer, a veteran Xbox partner and executive producer on various Microsoft initiatives, conveyed her worries about Microsoft’s prevailing strategic choices. The video, shared on June 28th, 2025, emphasizes Fryer’s concerns regarding the company’s aspirations in hardware, recent mergers and shutdowns, and possible price increases, labeling Microsoft’s strategy as “disordered.”

Fryer particularly concentrated on the status of Xbox as Microsoft’s internal hardware, implying that the brand is essentially “no longer alive.” She talked about the collaboration between Xbox and ROG, especially the recently launched Xbox ROG Ally, sharing her apprehension that Xbox may be slowly withdrawing from the hardware sector. Fryer expressed, “I’m saddened because, from my viewpoint, it seems Xbox has no interest or simply cannot deliver hardware any longer.”

She raised doubts about the value offering of the Xbox ROG Ally, stressing that consumers require a strong incentive to invest in new hardware. Fryer reflected on the development of the original Xbox, observing that the Xbox ROG Ally may not entice buyers unless it competes well on price. Nonetheless, she was skeptical about this scenario, noting that the ROG Ally is merely a rebranded existing item, with its lowest variant priced at approximately $600. Fryer concluded that lowering the price is unlikely to be the element that motivates gamers to acquire the handheld.

Fryer also condemned Microsoft’s absence of attractive game exclusives, which she identifies as a vital factor for hardware purchases. She pointed out that numerous expected games, like “State of Decay 3,” “Perfect Dark,” and “Fable,” remain in the development phase without updates, despite being in the pipeline for over five years. Fryer candidly stated, “Xbox doesn’t do exclusives anymore,” and criticized the “Xbox Anywhere” project, suggesting it undermines the necessity for Xbox hardware as games can be accessed on other devices such as PC, PlayStation 5, or Nintendo Switch.

Fryer’s perspectives carry substantial weight given her vast experience in the industry. She was among the initial members of Microsoft Game Studios in 1995, held the position of Director of the Xbox Advanced Technology Group in 2000, and served as the General Manager of the Seattle Division of Epic Games in 2001. Her achievements include being recognized as one of The Hollywood Reporter’s “Top 12 Most Influential Women in Gaming” and one of Next Generation’s “Game Industry’s 100 Most Influential Women.”

Surgent Studios is creating considerable excitement within the gaming sector with their forthcoming psychological horror title, “Dead Take,” which will spotlight acclaimed video game actors Ben Starr and Neil Newbon in prominent roles. The revelation was made through a press release, emphasizing the studio’s partnership with these gifted performers. Fans will remember Ben Starr for his appearances in “Final Fantasy XVI” and “Clair Obscur: Expedition 33,” while Neil Newbon is recognized for his roles in “Detroit: Become Human” and “Baldur’s Gate 3.”

A recently unveiled teaser for “Dead Take” has heightened expectations, revealing the game’s unsettling ambiance and fascinating storyline. Set in an opulent yet isolated Hollywood Hills estate, players will take on the persona of an actor on a quest to locate a missing friend after an extravagant celebration. As players tackle escape-room-inspired challenges and assemble videos, they will reveal sinister secrets lurking beneath the glamorous surface of the entertainment industry.

Creative Director Abubakar Salim conveyed his excitement for the venture, highlighting the camaraderie and sincere authenticity that Starr and Newbon contributed to the project. Salim, who established Surgent Studios in 2020, aspires to expand the horizons of storytelling across diverse media platforms. The studio has already made its presence known with their award-winning short films and their debut video game, “Tales of Kenzera: ZAU,” which garnered nominations and honors at esteemed gaming ceremonies.

Although a precise release date for “Dead Take” has not yet been disclosed, the game is anticipated to debut this year on PC through Steam. As excitement mounts, fans are keenly looking forward to the chance to engage with the haunting narrative and outstanding performances that “Dead Take” is set to offer.