Darrel Gallagher, who founded the now-defunct The Initiative, has announced that he will be starting a new studio at 2K.
In a post on LinkedIn, Darrel Gallagher has announced the formation of a new studio under 2K publishing.
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. 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!
Brian Horton, who was the Creative Director on Perfect Dark, announced he is joining the studio as well:
Happy to announce I joined 2K as VP, Head of Creative at a new studio with Darrell Gallagher!
Earlier in 2025, Gallagher’s last studio, The Initiative, was shut down after 5+ years of work on a new Perfect Dark title. The Initiative was first revealed back during E3 2018, during the Xbox Showcase. It was to be helmed by Darrell Gallagher, previously from Crystal Dynamics to work on bringing Perfect Dark to modern audiences. From our initial reporting:
In an email to staff (Thanks WinCentral), Xbox Game Studios Head Matt Booty, said:
“Following Phil’s note, I want to share more about the changes to the Studios business units. We have made the decision to stop development of Perfect Dark and Everwild as well as wind down several unannounced projects across our portfolio. As part of this, we are closing one of our studios, The Initiative. These decisions, along with other changes across our teams, reflect a broader effort to adjust priorities and focus resources to set up our teams for greater success within a changing industry landscape. We did not make these choices lightly, as each project and team represent years of effort, imagination, and commitment.
Our overall portfolio strategy is unchanged: build games that excite our players, continue to grow our biggest franchises, and create new stories, worlds, and characters. We have more than 40 projects in active development, continued momentum on titles shipping this fall, and a strong slate headed into 2026.
For those directly affected, we are working closely with HR and studio leadership to provide support, including severance, career transition assistance, and where possible, opportunities to explore roles on other teams. To everyone across our studios: thank you. Your creativity and resilience continue to define who we are. I believe in the strength of our teams and the direction we’re taking on the path ahead.”
It will be interesting to see what Mr. Gallagher is working on, as getting funding for video games is as tough as ever.
How do you feel about this new studio? Let us know in the XboxEra Forums or make some noise in the lively XboxEra Community Discord Server. If you’re looking to be a bigger part of an amazing community, then either choice is a good one!
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