Take-Two Recruits Former Perfect Dark Leads to Build New AAA Studio

Take-Two Steps In After Microsoft Closes The Initiative

The collapse of The Initiative, once positioned as one of Microsoft’s prestige first-party studios, was among the most disappointing outcomes of the company’s broad layoffs this year. The closure also ended development on the long-awaited Perfect Dark reboot, leaving fans without answers about what the project might have become.

While Microsoft’s restructuring erased the studio, it also placed a significant amount of high-level talent back into the market. Take-Two Interactive has now moved decisively. Although the publisher previously attempted to acquire both The Initiative and the Perfect Dark project during Microsoft’s internal reorganisation, those negotiations did not succeed. The company has nevertheless chosen to act on the opportunity that followed the shutdown.

Take-Two has confirmed the hiring of Darrell Gallagher, former head of The Initiative, and Brian Horton, the former game director of Perfect Dark. Rather than absorbing them into existing internal studios, Take-Two has given both leaders a more ambitious mandate.

They will build and lead a new AAA development studio under the Take-Two umbrella. The publisher announced the move shortly after industry trackers noted Gallagher and Horton’s departure from Microsoft.

A New Team With High Ambition but Few Public Details

Take-Two has not yet revealed the new studio’s name, location, or staffing plans. Gallagher posted a brief message stating that the team intends to pursue a project of unprecedented ambition. The statement suggests that Take-Two is positioning the studio to compete at a scale comparable to its flagship AAA franchises. However, the exact nature of the debut title remains unknown.

Both Gallagher and Horton bring extensive experience across vital action and narrative franchises. Gallagher previously led Crystal Dynamics during the Tomb Raider reboot era, while Horton worked on Tomb Raider, Call of Duty, and later Perfect Dark. Their combined backgrounds point toward a studio likely focused on high-end action or narrative-driven development.

Take-Two’s decision to build a new team around these leaders indicates a long-term investment strategy rather than a quick pivot. It also demonstrates confidence in talent displaced by Microsoft’s restructuring, offering a new avenue for creative leadership that had been left without a project.

Perfect Dark Remains Dormant Under Microsoft

While Take-Two begins to shape its new studio, the Perfect Dark IP remains entirely under Microsoft’s control. There has been no indication that Xbox intends to revive the project following The Initiative’s closure. The franchise has not received updates, previews, or public statements from Xbox leadership since the cancellation, and its future appears dormant for the foreseeable future.

For fans, the hiring news does not offer a revival of the series. However, the move signals that Gallagher and Horton will continue to work at the scale of the projects they were known for, even if under a different publisher. Take-Two is expected to share details about the studio and its first project once the team finalises its identity and begins early production.