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    Microsoft to blame for Crystal Dynamics layoffs


    Embracer-owned studio Crystal Dynamics was reportedly forced to jettison even more employees after Microsoft abandoned Perfect Dark.

    Last week, Crystal Dynamics confirmed it was making a undisclosed number of layoffs due to “evolving business conditions.” Now, Bloomberg reports those cuts were made after Crystal Dynamics—which had been co-developing Perfect Dark with recently-shuttered Microsoft subsidiary The Initiative—was left in limbo after the long-gestating reboot was cancelled. 

    A number of anonymous sources told Bloomberg that developers at The Initiative and Crystal Dynamics were granted permission to search for another funding partner after Microsoft pulled the plug.

    Those teams reportedly spoke to a number of prospective publishers and even came close to striking a deal with Grand Theft Auto maker Take-Two Interactive. Talks between the companies, however, reached an impasse due to disagreements over who would take ownership of the Perfect Dark franchise. 

    Crystal Dynamics then announced its third round of redundancies in as many years. 

    Microsoft, Embracer, and Take-Two declined to comment when approached by Bloomberg, but the layoffs at Crystal Dynamics were made around a month after Microsoft canned Perfect Dark and shut down The Initiative. 

    Related:Activision and Paramount announce live action Call of Duty film

    In an internal email viewed by Game Developer, Xbox Game Studios boss Matt Booty said The Initiative was torched so Microsoft could “adjust priorities and focus resources to set up our teams for greater success within a changing industry landscape.”

    The shutdown was the result of mass layoffs at Microsoft, which laid off 9,000 people in July—including many within its video game division.





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