Microsoft's recent Xbox layoffs have severely impacted id Software, which lost approximately 136 employees and has been reduced to operating as a minimal support studio. Reports indicate the developer was in pre-production on multiple projects, including a reboot of the Perfect Dark franchise (for which concept art had begun) and an action game inspired by the John Wick films. The studio has also been forced to abandon its proprietary game engine in favour of Unreal Engine.

With the majority of id Software's workforce eliminated, the likelihood of either project moving forward has become extremely slim. This represents another cancellation in Microsoft's history of struggling Perfect Dark reboots over the past several years. The layoffs reflect broader cost-cutting measures across Xbox Game Pass and Microsoft's gaming division, raising questions about the company's capacity to develop new IP alongside maintaining existing franchises.