The news was initially confirmed in a statement signed by Brenda Romero and posted on X. “Last night, we learned that our publisher has canceled funding for our game along with several other unannounced projects at other studios,

Microsoft announced sweeping layoffs affecting as many as 9,000 employees, and they had a big impact on the company’s Xbox studios. Microsoft canceled Perfect Dark from The Initiative and closed the studio.

These changes come at a time when we have more players, games, and gaming hours than ever before,” said Xbox head Phil Spencer in an email to staff.

Microsoft Gaming CEO Phil Spencer has been in charge of Xbox for over a decade and the company says he’s not leaving anytime soon, calling rumors that the longtime exec might be resigning when the next generation of Xbox hardware launches “completely made up.

While Microsoft’s comment doesn’t address the rumor fully, it makes it clear Spencer isn’t retiring imminently. Separately, Microsoft communications chief, Frank Shaw, took

Microsoft has denied rumours of Xbox boss Phil Spencer’s retirement, although plenty wish it were true. Per the words of Microsoft Gaming CEO Phil Spencer himself, the Xbox brand has ‘never looked stronger,