Talks to move the cancelled Perfect Dark reboot to Take-Two have collapsed, according to VGC citing Bloomberg reporter Jason Schreier. The three-way discussions between Microsoft, Take-Two, and Embracer (owner of Crystal Dynamics) stalled over long-term ownership of the Perfect Dark IP. Crystal Dynamics has since cut staff. In short: no deal, no reboot.
What was actually on the table
Bloomberg says Embracer brought Perfect Dark to Take-Two. The aim: Take-Two would fund and publish, Crystal Dynamics would keep building, and Xbox would step back. That would have given the shelved project a path back.
- Parties involved: Microsoft, Take-Two, Embracer/Crystal Dynamics
- Proposed role: Take-Two funds/publishes; Crystal Dynamics develops
- Sticking point: long-term Perfect Dark IP control
- Outcome: negotiations collapsed; project still dead
Bloomberg’s report adds the key friction point: none of the companies agreed on who owns Perfect Dark in the long run. Microsoft holds the IP and, per reporting, did not want to give that up. With no IP deal, the rest falls apart.
Why the deal fell through
This wasn’t about budget or tech—at least not first. It was about who gets to own Joanna Dark’s future. Reports say all sides were close, then the IP clause broke it. That’s common when a platform holder owns the brand and a third-party publisher takes over the money and risk.
- IP today: Microsoft owns Perfect Dark
- Take-Two’s ask: fund + publish the game
- Clash: who controls the franchise after launch
- Result: no transfer, no funding, no game
Windows Central and others match the same read: almost saved, then stalled. With talks done, Crystal Dynamics cut staff linked to the project. That lines up with last week’s statements about “evolving business conditions.”
The timeline so far
If you lost track, here’s the short version from announcement to now.
- 2020: Perfect Dark reboot announced (The Game Awards).
- 2021: Crystal Dynamics joins The Initiative on development.
- June 2024: Gameplay shown during Xbox’s summer showcase.
- July 2025: Microsoft cancels the project amid major layoffs and closes The Initiative.
- Late Aug 2025: Crystal Dynamics announces layoffs.
- 2 Sept 2025 (10:18pm GST): VGC publishes the Take-Two talks collapsed report.
The July cuts at Microsoft set the tone for all this. After that, Embracer tried to keep the work alive via Take-Two. It almost worked—until the rights issue ended it. Don’t expect this reboot to come back again soon.
What we still don’t know
There are gaps that only official statements can fill.
- How far development really got after the 2024 gameplay showing
- The exact terms Take-Two proposed beyond funding/publishing
- Whether Microsoft will revisit Perfect Dark later with a new team
VGC notes that Microsoft, Xbox, Embracer, and Take-Two declined to comment. So this is as much as the reporting can verify right now.
FAQ
Is Perfect Dark cancelled?
Yes. Microsoft cancelled the reboot in July 2025 as part of wider layoffs. The rescue talks with Take-Two have now collapsed, so the project remains cancelled.
Who owns Perfect Dark?
Microsoft owns the Perfect Dark IP (acquired with Rare). Reports say IP ownership over the long term was the key blocker in talks.
Did Crystal Dynamics lay people off because of this?
Crystal Dynamics announced layoffs after the Take-Two deal fell through, according to multiple reports. The studio had been co-developing the game with The Initiative.
