Take-Two Hires Perfect Dark Leadership to Found New 2K Studio

Take-Two Interactive has officially hired the former leadership team behind Xbox’s cancelled Perfect Dark reboot. Just months after Microsoft closed down The Initiative and scrapped the highly anticipated spy thriller, Darrell Gallagher and Brian Horton have been selected to head a brand-new studio under the 2K publishing label. While the duo will not be continuing their work on Perfect Dark, the quick recruitment signals that Take-Two sees immense value in the talent that Xbox let go.

The formation of this new studio serves as the epilogue to a dramatic behind-the-scenes negotiation. According to reports from Bloomberg’s Jason Schreier, Take-Two didn't just want the talent; they initially tried to save the game itself. Following Xbox's decision to cancel the project in July 2025, Take-Two reportedly entered negotiations to take over  The Initiative and the Perfect Dark project, offering to fund the title's completion in exchange for publishing rights. 

However, the deal collapsed because Microsoft was unwilling to relinquish long-term ownership of the Perfect Dark intellectual property. Unable to secure the game, Take-Two pivoted to secure the creators instead.

Building a New High-Budget Title

Gallagher and Horton are now tasked with building a fresh, high-budget action-adventure title, reuniting the pair who previously steered development at The Initiative. Gallagher will serve as Studio Head, with Horton joining as Creative Director.

In a statement to IGN, a 2K spokesperson expressed excitement over the move, noting the "combined six decades of AAA game-making experiences" across major franchises like Tomb Raider, Call of Duty, Destiny, Marvel's Spider-Man, Hitman, and Deus Ex. Gallagher shared his own enthusiasm on LinkedIn, stating he is ready to lead an "ambitious opportunity unlike anything I’ve taken on before."

For fans of Perfect Dark, this news is a bittersweet finale to a controversial summer. The game’s cancellation and the closure of The Initiative came as a shock to many, especially after the studio released lengthy snippets of gameplay earlier in 2024. Unfortunately, reports now suggest those previews were "fake gameplay slices" designed to generate hype for a project that was already in trouble. 

Despite a concerted effort by Joanna Dark actor Alix Wilton Regan and others to save the project, the franchise—dormant since 2010—has officially returned to hibernation.

The move underscores the starkly contrasting fortunes of two gaming giants in 2025. While Take-Two is pursuing an expansion strategy following the success of franchises like Grand Theft Auto, Xbox is grappling with a significant identity crisis and mass layoffs. 

The closure of The Initiative coincided with a wider restructuring that also saw the cancellation of Rare's long-in-development Everwild and an unnamed sci-fi MMO at ZeniMax. With Gallagher and Horton now settled at 2K, it seems the door has firmly closed on this chapter of Xbox history.