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.

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,

Microsoft says it is laying off about 9,000 workers, its second mass layoff in months and its largest in more than two years. The tech giant began sending out layoff notices Wednesday that hit the company's Xbox video game business and other divisions.