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.

New reports indicate that Microsoft has cancelled multiple new games as part of recent Xbox layoffs, including Rare's Everwild and ZeniMax's new MMO.

Reports and rumors of massive layoffs at Xbox have been building since late last month, and the first blood has now been spilled. Bloomberg reports that Candy Crush maker King is cutting 200 employees,