Take-Two Hires Former Perfect Dark Studio Head and Creative Director to Establish New 2K Studio
The fallout of Microsoft’s canceled Perfect Dark reboot continues to reshape parts of the AAA development landscape. According to new reporting from Bloomberg’s Jason Schreier, shared publicly via Bluesky, Take-Two Interactive has hired two senior leaders from the now defunct Initiative team to form a brand new internal 2K studio. This move follows earlier reporting that Take-Two had attempted to rescue Perfect Dark from cancellation, but ultimately could not reach an agreement with Microsoft regarding franchise ownership and future rights.
Take-Two’s newest recruits include Darrell Gallagher, former Studio Head at The Initiative and previously Studio Head at Crystal Dynamics, and Brian Horton, the final Creative Director on Perfect Dark before Microsoft shuttered the studio in July 2025. Their résumés bring significant pedigree to Take-Two’s portfolio. Gallagher oversaw Tomb Raider and Rise of the Tomb Raider during his Crystal Dynamics tenure, and Horton served as a key creative leader on both titles before moving to Insomniac Games, where he contributed to Marvel’s Spider-Man, Miles Morales, Ratchet & Clank: Rift Apart, Spider-Man 2, and the upcoming Marvel’s Wolverine. Horton joined The Initiative in late 2024, just months before the reboot was ultimately canceled.
This is not the first time Take-Two has strategically hired high profile industry talent to bootstrap a new AAA studio within 2K. A similar move occurred when the publisher brought in Michael Condrey, co creator of Dead Space and former studio head of Sledgehammer Games, to establish 31st Union in Silicon Valley. Although Condrey was dismissed earlier in 2025 following the lukewarm reception to the studio’s free-to-play roguelike hero shooter Project ETHOS, development on that project reportedly continues under new leadership.
The formation of Gallagher and Horton’s new studio signals Take-Two’s continued investment in expanding 2K’s internal development capabilities, especially as the market demands larger, more content rich AAA experiences across longer development cycles. With the average AAA project now requiring four to six years, it may be some time before this newly formed studio reveals its first title. Nevertheless, the combination of Gallagher’s organizational leadership and Horton’s creative direction suggests that the studio aims to pursue ambitious, narrative-driven action projects consistent with their past work.
As the industry continues to evolve amid rising budgets, consolidation, and transformative shifts in platform strategies, Take-Two’s latest talent acquisition underscores its long-term commitment to remaining competitive at the top tier of AAA development. We will update readers as additional details, leaks, or early project outlines emerge over the coming years.
What kind of project do you hope this new 2K studio will pursue? A narrative action adventure, a sci-fi reboot, or something entirely new? Share your thoughts.
