The Initiative, the studio behind Perfect Dark, was shuttered earlier this year in a mass Microsoft layoffs, with its project apparently canceled. However, Perfect Dark apparently remained in development at Crystal Dynamics until just last week, while leadership from both studios struggled to find new funding from a surprising source: Take-Two.

In a report from Bloomberg, which IGN can corroborate from its own sources, it is revealed that Perfect Dark was not “fully abandoned” when The Initiative shuttered earlier this year. Leadership from both Crystal and The Initiative spent the following two months looking for a new publisher and funding source. While multiple parties expressed interest, the most likely candidate turned out to be Take-Two interactive. However, the two groups couldn’t come to an agreement, at least in part due to disagreements over long-term ownership of the property.

As a result, the deal fell through, resulting in last week’s layoffs at Crystal Dynamics as all hope of the project being reinstated vanished.

Crystal Dynamics originally signed onto Perfect Dark as co-developer after the project struggled to get off the ground with its first co-dev, Certain Affinity. Crystal was acquired by Embracer Group in 2022, and Perfect Dark was canceled in July after failing to appear at the Xbox Games Showcase the prior month.

Rebekah Valentine is a senior reporter for IGN. You can find her posting on BlueSky @duckvalentine.bsky.social. Got a story tip? Send it to rvalentine@.