The troubled Perfect Dark reboot is canceled and Xbox studio The Initiative has shut down amid devastating layoffs sweeping across Microsoft today, sources have told IGN.

Microsoft is scrapping two upcoming video games, a reboot of "Perfect Dark" and the fantasy title "Everwild," in addition to ending development on several unannounced projects.

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.