Microsoft is canceling its Perfect Dark and Everwild games as part of sweeping cuts to its Xbox division. Matt Booty, Xbox president of game content and studios, revealed that Microsoft will be closing The Initiative, the studio behind Perfect Dark, in an internal memo to Xbox employees today.

Speaking on an accompanying earnings call, as reported by Game Developer, Microsoft CEO Satya Nadella said that Xbox Game Pass’s annual revenue totaled just under $5 billion, with 500 million active users, and “nearly” 40 games in development. He added, “We surpassed over 500 million hours of gameplay streamed via the cloud this year.”

Microsoft has revealed that the Xbox Game Pass garnered almost $5 billion in annual revenue in FY25. The firm also said it has 500 million active users across several gaming platforms and devices. The tech company reported that Azure has seen an 18% surge in revenue last quarter,