Take-Two Interactive has officially established a new 2K studio, led by former Perfect Dark reboot executives Darrell Gallagher and Brian Horton, marking a significant reshaping of talent in the AAA gaming industry. The move comes after Microsoft’s cancellation of The Initiative’s Perfect Dark project, leaving its leadership team to seek new opportunities.
🎮 The Announcement
- Darrell Gallagher (former head of The Initiative) has joined 2K as SVP, Studio Head, tasked with building the new studio from the ground up.
- Brian Horton (former creative director at The Initiative) has taken the role of VP, Head of Creative at the studio.
- Both executives bring over six decades of combined AAA experience, having worked on franchises like Tomb Raider, Call of Duty, Destiny, Marvel’s Spider-Man, Hitman, and Deus Ex.
- 2K confirmed the hires, describing the new studio as an “ambitious opportunity unlike anything [Gallagher] has taken on before”.
📜 Backstory: From The Initiative to 2K
- The Initiative, founded by Microsoft in 2018, was envisioned as a “AAAA” studio meant to rival Sony’s prestige developers. Its flagship project was a reboot of Perfect Dark.
- Despite high expectations, the studio faced internal struggles, staff departures, and creative misalignment. Reports suggested difficulty in balancing Microsoft’s corporate oversight with Gallagher’s vision for autonomy.
- By mid-2025, Microsoft cancelled the Perfect Dark reboot amid wider layoffs affecting Xbox Game Studios.
- Gallagher and Horton, both central to the project, departed soon after. Their move to 2K signals a fresh start outside Microsoft’s ecosystem, with Take-Two offering more creative freedom and resources.
🏢 Why This Matters
- Talent Migration: The shift highlights how major publishers like Take-Two capitalize on industry shakeups, absorbing proven leaders from failed projects.
- 2K’s Expansion: While 2K is best known for NBA 2K and Borderlands, this new studio suggests ambitions beyond established franchises.
- Creative Autonomy: Gallagher’s statement emphasizes building a studio where “great people come together with a bold vision,” hinting at lessons learned from The Initiative’s struggles.
No details yet on the studio’s first project. Speculation ranges from a new AAA IP to potential collaborations with existing 2K franchises, but given Gallagher and Horton’s pedigree in narrative-driven action games, the studio may pursue a cinematic blockbuster in the vein of Tomb Raider or Spider-Man.
Industry watchers will be keen to see if Take-Two positions this studio as a counterweight to Sony’s Santa Monica or Naughty Dog, filling the prestige gap Microsoft failed to secure with The Initiative.
⚠️ Risks & Challenges
- Unclear Direction: Without a confirmed project, the studio’s trajectory remains speculative.
- Market Saturation: Competing in the AAA space requires massive budgets and long development cycles, which can strain even experienced teams.
- Reputation Recovery: Gallagher and Horton must prove they can deliver after the high-profile collapse of Perfect Dark.
This new 2K studio represents a rebirth for two veteran developers whose vision was stifled under Microsoft’s corporate structure. Take-Two’s backing offers them a chance to finally realize the kind of ambitious, narrative-driven projects they’ve long championed. If successful, this could become one of 2K’s most important creative hubs in the next decade.
