- Xbox recently shut down The Initiative and cancelled Perfect Dark after nearly five years of development.
- In 2020, the gaming giant referred to this developer as a ‘AAAA team.’
- Similar terminology was used by Ubisoft when describing a major project like Skull and Bones.
Xbox’s latest wave of layoffs was followed by multiple cancellations and studio closures. Among the more disheartening announcements was the revelation that Perfect Dark was cancelled and The Initiative was being shut down.
This information becomes even more surprising when considering the fact that Xbox previously referred to The Initiative as a fully AAAA team.
Why it matters: Perfect Dark’s recent gameplay demo from 2024 showed a lot of potential. Fans were shocked when the game was cancelled because many thought Perfect Dark could have been a generation-defining exclusive for Xbox.

Five years ago, Microsoft unveiled the Perfect Dark reboot for the first time, describing it as an ambitious project, with Crystal Dynamics and The Initiative being tasked to reintroduce this classic to a new generation.
However, Microsoft job listings before this referred to The Initiative as a AAAA team. Although these listings have since been deleted, existing headlines and discussions from 2020 highlight that the ‘AAAA studio’ terminology was used commonly for The Initiative.
For context, the term is largely believed to have been coined by Ubisoft. The French gaming giant referred to games like Skull and Bones and Far Cry 6 as ‘AAAA projects,‘ highlighting even more significant investments than traditional AAA projects.
Unfortunately, it seems the ‘AAAA studio’ label could not save The Initiative. To Ubisoft’s credit, the gaming giant continued supporting Skull and Bones for well over seven years through a tumultuous development cycle.
Following Perfect Dark’s cancellation, an actor has even called upon the fans to help bring the game back. However, given Microsoft’s history of studio closures, this seems very unlikely.
What do you think about the ‘AAAA studio’ label for The Initiative? Do you think Xbox did a poor job managing such an ambitious project? Let’s discuss in the comments and on the Tech4Gamers Forums.
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[News Reporter]
Avinash is currently pursuing a Business degree in Australia. For more than three years, he has been working as a gaming journalist, utilizing his writing skills and love for gaming to report on the latest updates in the industry. Avinash loves to play action games like Devil May Cry and has also been mentioned on highly regarded websites, such as IGN, GamesRadar, GameRant, Dualshockers, CBR, and Gamespot.