Following Xbox's Perfect Dark Cancellation, Crystal Dynamics Suffers More 2025 Layoffs

Back in March, prior to Perfect Dark being cancelled by Microsoft, one of its dev teams Crystal Dynamics suffered several layoffs - and now that the Xbox cancellation has settled in, the studio has laid off even more people here in 2025.

Posting out to LinkedIn this week, Crystal Dynamics says that due to "evolving business conditions", it has made the "very difficult decision to part ways with a number of our talented colleagues". The team insists that work on its most-prized project — the next Tomb Raider game — "remains unaffected by this decision".

"Today we made the very difficult decision to part ways with a number of our talented colleagues as the result of evolving business conditions. This decision was not made lightly. It was necessary, however, to ensure the long-term health of our studio and core creative priorities in a continually shifting market.

To those impacted - we recognize and thank you for your hard work, talent, and passion. We are committed to offering the full extent of support and resources at our disposal during this transition.

To our teams, players, and partners, thank you for your continued support as we build a creative, sustainable, and resilient tomorrow together. This includes the future of Tomb Raider, which remains unaffected by this decision."

We hope that everyone who has lost their job in this round of layoffs lands on their feet quickly and finds work at other development studios. It's been a tough few years for the gaming industry as studios continue to wrestle with rising AAA game making costs, trade tariffs and rising inflation.

Of course, the other team that was working on Perfect Dark — Microsoft's The Initiative studio — was fully shutdown following the reboot's cancellation last month. We look forward to seeing what Crystal Dynamics can build with its next Lara Croft adventure on Xbox, whenever it sees the light of day.

What do you make of this latest news coming out of Crystal Dynamics? Talk to us about it down below.

[source linkedin.com]