Take-Two Interactive confirmed on December 8, 2025 that it has hired former Perfect Dark studio head Darrell Gallagher and creative director Brian Horton to establish a brand new studio under the 2K Games umbrella. The announcement, first reported by Bloomberg’s Jason Schreier, comes months after Microsoft cancelled Perfect Dark and shut down The Initiative, the studio formed specifically to develop the franchise reboot. Gallagher joins as Senior Vice President and Studio Head while Horton becomes Vice President and Head of Creative for the new venture.
A 2K spokesperson confirmed the hire stating: With a combined six decades of AAA game-making experience across franchises like Tomb Raider, Call of Duty, Destiny, Marvel’s Spider-Man, Hitman, Deus Ex, and more, we’re thrilled to confirm Darrell Gallagher and Brian Horton have joined 2K for their next all-new venture. No details about what project the new studio will work on have been announced, though speculation focuses on whether Perfect Dark could be revived after Take-Two reportedly expressed interest in acquiring the cancelled project.
Who Are Gallagher and Horton
Darrell Gallagher founded The Initiative in 2018 after a distinguished career at Crystal Dynamics where he oversaw the Tomb Raider franchise reboot trilogy. The Initiative was announced during Xbox’s E3 2018 showcase as Microsoft’s AAAA studio bringing together top talent from across the industry to create groundbreaking exclusive games for Xbox platforms. Gallagher’s leadership credentials and track record with Tomb Raider made him the ideal choice to spearhead Microsoft’s ambitious plans for Perfect Dark’s return.
Brian Horton served as creative director on Perfect Dark at The Initiative after previous work as creative director on Insomniac Games’ Marvel’s Spider-Man, one of PlayStation’s biggest recent successes. His expertise in crafting compelling superhero narratives and action gameplay made him crucial to Perfect Dark’s creative vision. Horton’s involvement suggested The Initiative was serious about delivering a blockbuster game worthy of the Perfect Dark legacy.
Combined Industry Experience
Between them, Gallagher and Horton bring 60 combined years of AAA development experience spanning some of gaming’s most successful franchises. Their collective resume includes work on Tomb Raider, Call of Duty, Destiny, Marvel’s Spider-Man, Hitman, and Deus Ex. This pedigree represents exactly the kind of proven talent major publishers seek when establishing new studios intended to create flagship franchises rather than smaller experimental projects.
The duo’s experience specifically with reviving dormant franchises (Tomb Raider) and adapting beloved IP for modern audiences (Spider-Man, Perfect Dark attempt) suggests Take-Two hired them to tackle a similar challenge. Whether that means continuing Perfect Dark’s development, reviving another dormant IP, or creating an original franchise inspired by their past successes remains to be seen.
The Perfect Dark Cancellation
Perfect Dark’s cancellation after more than five years of development represents one of Microsoft’s highest-profile project failures. The Initiative was founded specifically to reboot the beloved Nintendo 64 spy shooter franchise created by Rare. Microsoft acquired Rare in 2002 partially for franchises like Perfect Dark, but multiple attempts to revive the series failed to capture the original’s magic or commercial success.
The reboot encountered significant development challenges that led to Crystal Dynamics being brought in to co-develop alongside The Initiative. This collaboration created a complex two-studio development structure across California and Washington state that apparently proved unworkable. When Microsoft finally cancelled the project, both The Initiative was shut down entirely and Crystal Dynamics underwent its second round of layoffs in 2025.
Attempts to Save the Project
According to Jason Schreier’s reporting corroborated by IGN sources, leadership from both The Initiative and Crystal Dynamics spent two months after the cancellation shopping Perfect Dark to publishers hoping to save the project. Take-Two Interactive was allegedly one of the interested parties who evaluated acquiring the game, though negotiations ultimately fell through at that time.
The fact that Take-Two considered rescuing Perfect Dark months ago and has now hired the project’s top creative leads suggests the publisher remains interested in either reviving that specific game or leveraging Gallagher and Horton’s expertise on a similar project. While 2K’s statement emphasizes this is an all-new venture, industry observers remain skeptical that the company would hire Perfect Dark’s directors for something completely unrelated to their previous work.
What the New Studio Will Work On
Neither Take-Two, 2K, Gallagher, nor Horton have disclosed what project the new studio will develop. Gallagher described it on LinkedIn as an ambitious project unlike anything I’ve tackled before, suggesting something beyond standard franchise sequel work. Horton expressed excitement about joining a new studio alongside Gallagher without providing specifics about their creative direction.
The most obvious speculation centers on Perfect Dark potentially being revived at 2K rather than remaining cancelled. Microsoft owns the Perfect Dark IP, so Take-Two would need to negotiate licensing rights similar to how Insomniac licensed Spider-Man from Marvel/Sony for their games. Whether Microsoft would license one of their owned franchises to a competitor after cancelling their own version is questionable, though stranger deals have happened when companies want to recoup some value from dormant IP.
Original IP Possibility
Alternatively, Gallagher and Horton might create an original spy-themed action game inspired by Perfect Dark without using that specific IP. The duo could leverage everything they learned during Perfect Dark’s development, applying those lessons to a new franchise that Take-Two fully owns rather than licensing from Microsoft. This approach would give 2K a potential franchise they control completely while allowing Gallagher and Horton to realize the creative vision that was cancelled at Microsoft.
The emphasis on this being unlike anything Gallagher has tackled before suggests the studio might pursue something outside the third-person action-adventure space where both developers have extensive experience. Perhaps a live-service game, a new genre entirely, or innovative gameplay mechanics that differentiate from their previous work. However, publishers typically hire proven talent to do what they’ve already proven they can do successfully rather than gamble on unproven creative pivots.
Take-Two’s Studio Expansion Strategy
The new studio represents Take-Two’s continued expansion under CEO Strauss Zelnick’s leadership. The publisher has systematically acquired or established studios to diversify beyond Grand Theft Auto dependence, including Zynga for mobile gaming, establishing Private Division for indie publishing before shuttering it in 2024, and creating multiple studios under the 2K brand to develop sports, narrative, and action games.
This strategy acknowledges that relying on Rockstar Games for the majority of revenue creates enormous risk if GTA or Red Dead Redemption underperform or face extended development delays. By building a portfolio of studios with proven leadership capable of creating successful franchises, Take-Two positions itself to survive even if Rockstar stumbles, though GTA remains the company’s financial foundation.
The Michael Condrey Situation
The Gallagher and Horton hire comes less than a year after Take-Two fired Michael Condrey, the Call of Duty veteran who founded 31st Union (another 2K studio) in 2019. Condrey was removed as studio head in February 2025 after disappointing reception to Project Ethos, the studio’s debut game. This demonstrates Take-Two’s willingness to replace leadership when projects underperform, creating pressure on Gallagher and Horton to deliver results or face similar consequences.
The parallel between hiring high-profile industry veterans to lead new 2K studios is striking. In both cases, Take-Two recruited experienced developers with strong pedigrees to establish studios working on unannounced ambitious projects. The difference is that Gallagher and Horton join with fresh perspective after Condrey’s failure, hopefully learning from whatever mistakes led to Project Ethos’ problems.
Industry Implications
The hire demonstrates that talented developers from cancelled projects don’t struggle to find new opportunities despite the setback. Gallagher and Horton spent five-plus years on Perfect Dark only to see it cancelled, which could have damaged their industry reputation if the cancellation reflected poorly on their abilities. Instead, a major publisher immediately hired them to lead a new studio, validating that Microsoft’s decision was viewed as corporate/strategic rather than reflecting creative failure.
This also highlights how top development talent circulates between major publishers and studios. Gallagher went from Crystal Dynamics under Square Enix to The Initiative under Microsoft to 2K under Take-Two. Horton moved from Insomniac under PlayStation to The Initiative under Microsoft to 2K under Take-Two. These movements create cross-pollination where ideas, techniques, and relationships developed at one company influence work at competitors.
Community Reactions
Reddit discussions about the announcement show mixed reactions. Some users celebrate that Gallagher and Horton found new homes quickly rather than facing unemployment after Perfect Dark’s cancellation. Others express skepticism about whether they can succeed at 2K after failing to deliver at Microsoft, questioning if the problem was the developers or the corporate environment.
Perfect Dark fans remain hopeful the franchise might be revived at 2K, though most recognize this is wishful thinking given IP ownership complications. The more realistic hope is that whatever Gallagher and Horton create at their new studio captures the spirit of what Perfect Dark could have been, delivering the spy-action experience fans wanted even if it carries a different name.
FAQs
Who did Take-Two hire for the new 2K studio?
Take-Two hired Darrell Gallagher as Senior Vice President and Studio Head, and Brian Horton as Vice President and Head of Creative to establish a brand new studio under 2K Games in December 2025.
What will the new studio work on?
No details have been announced. Gallagher described it as an ambitious project unlike anything he’s tackled before, but specifics about genre, IP, or release timeline remain undisclosed.
Will the studio work on Perfect Dark?
Unknown. While Gallagher and Horton led Perfect Dark development before its cancellation, Microsoft owns the IP. Whether Take-Two could license it or if the studio will create something original remains unclear.
What happened to Perfect Dark?
Microsoft cancelled Perfect Dark after more than five years of development and shut down The Initiative, the studio founded to develop it. Crystal Dynamics, which co-developed the game, underwent layoffs following the cancellation.
Who are Darrell Gallagher and Brian Horton?
Gallagher founded The Initiative and previously led Crystal Dynamics’ Tomb Raider reboot. Horton was Perfect Dark’s creative director and previously worked as creative director on Insomniac’s Marvel’s Spider-Man.
When was this announced?
Jason Schreier reported the hire on December 7, 2025. Take-Two officially confirmed it on December 8, 2025 with both Gallagher and Horton posting LinkedIn announcements.
How experienced are the new studio heads?
Combined, Gallagher and Horton have 60 years of AAA development experience across franchises including Tomb Raider, Call of Duty, Destiny, Marvel’s Spider-Man, Hitman, and Deus Ex.
Is this related to Michael Condrey’s 31st Union?
No, this is a separate new studio. Michael Condrey founded 31st Union in 2019 but was fired as studio head in February 2025 after disappointing reception to Project Ethos.
Conclusion
Take-Two Interactive’s establishment of a new 2K studio led by Perfect Dark veterans Darrell Gallagher and Brian Horton represents both an opportunity and a challenge for all parties involved. For Gallagher and Horton, it’s a chance to prove that Perfect Dark’s cancellation reflected Microsoft’s corporate issues rather than their creative abilities, and to finally deliver the ambitious game they envisioned over five years at The Initiative. For Take-Two, it’s a bet that hiring proven talent with strong pedigrees will yield successful new franchises that diversify the company beyond GTA dependence, though Michael Condrey’s recent firing demonstrates the publisher won’t tolerate underperformance regardless of resume credentials. The mystery of what project the new studio will develop creates intrigue that will sustain interest until official announcements, with speculation ranging from Perfect Dark revival to original IP that captures similar spy-action appeal. Whether the duo can translate their extensive experience into commercial success at their third major publisher remains the crucial question that will define this venture’s legacy. The gaming industry will watch closely to see if Gallagher and Horton’s combined six decades of experience across blockbuster franchises translates into another hit or if they become cautionary tales about talent not guaranteeing success when corporate structures, market conditions, or creative vision don’t align properly. For now, the benefit of the doubt goes to two developers who have proven themselves multiple times before, though the pressure to deliver results quickly given Take-Two’s demonstrated willingness to replace leadership cannot be understated.