"Unlike anything I've taken on before" — The heads of this canceled Xbox game join Take-Two to make a new 2K developer after Microsoft killed their studio

Microsoft is hoping you forgot, but allow me to remind you if you did: the company laid off roughly 9,000 employees across all of its divisions in early July this year, including Xbox and the development studios under its publishing wing.

As part of the cuts, Rare's Everwild and ZeniMax Online's new MMO were canned, and the Perfect Dark reboot was shuttered too — as was The Initiative, the studio making it with Crystal Dynamics.

In September, it came out that 2K owner Take-Two Interactive tried to save Perfect Dark from Microsoft, but tragically, the rescue fell through when clear ownership of the rights to the FPS franchise couldn't be established. It's worth noting that Crystal Dynamics was then hit with a wave of layoffs — its second of 2025 (a third came in November).

But while Take-Two failed to get its hands on the Perfect Dark IP, it has picked up two of the game's lead developers: The Initiative studio head Darrell Gallagher and creative director Brian Horton.

Now, Gallagher serves as senior vice president at 2K and the head of a brand new developer, with Horton filling the role of vice president and head of creative at the fledgling studio.

Gallagher announced the news on LinkedIn following a report from Bloomberg's Jason Schreier: "I’m excited to share that I will be joining 2K as SVP, Studio Head, where I’ll be building a new studio and leading an ambitious opportunity unlike anything I’ve taken on before," he wrote.

"I’ve spent my career believing in what’s possible when great people come together with a bold vision. I can’t wait to get started with the exceptional team at 2K!" Continued Gallagher. Note that Horton was "happy to announce" and confirm the news in his own post as well.

Perfect Dark - Gameplay Reveal - Xbox Games Showcase 2024 - YouTube

Watch On

Before founding The Initiative in 2018, Gallagher served as SVP and head of development at (then independent) Activision, helping ship several Call of Duty titles, FromSoftware's Sekiro: Shadows Die Twice, and Destiny 2, among other projects.

Before that, he was at Square Enix and Crystal Dynamics, contributing to several Tomb Raider projects, Just Cause 3, Life is Strange, and other noteworthy titles.

Horton, on the other hand, was Insomniac Games' creative director for Marvel's Spider-Man and its follow-up title, Miles Morales. He also contributed to the upcoming Marvel's Wolverine.

Before that, Horton was a studio art director and creative director working on Call of Duty: Modern Warfare Remastered at Infinity Ward, and also previously worked at Crystal Dynamics, the now-closed Disney Interactive Studios, and other teams.

At the moment, we know nothing about the studio Gallagher and Horton are building with 2K Games, nor do we know anything about the game (or games) the new developer will end up working on. Perhaps they'll end up making a stealthy FPS styled after Perfect Dark, but that's just speculation.

Still, it's what I'm hoping for, especially since it's been a painful 25 years since Joanna Dark's original legendary adventure.

Regardless of whatever Gallagher and Horton develop at their new studio, though, I'm just happy that they've landed new positions in the industry. I hope everyone else at The Initiative has been able to find a home, too.

Follow Windows Central on Google News to keep our latest news, insights, and features at the top of your feeds!