Darrell Gallagher leaves Xbox following The Initiative’s closure

Darrell Gallagher, the former head of The Initiative, has left Xbox, following the shuttering of the studio earlier this year.

Gallagher announced his departure from Xbox in a LinkedIn post, published on September 15, 2025, calling his time at the company “an incredible journey” that has “come to a close with the wind-down of Perfect Dark and The Initiative.”

“I couldn’t be prouder of the talented and passionate team I had the privilege [to] assemble and lead,” Gallagher wrote. “Together, we set out to reimagine an iconic franchise and poured creativity, craft, and dedication into every step of the way.

“The public reception and excitement for what we were building has been inspiring and deeply appreciated by all of us.

“While this chapter is ending sooner than hoped, the spirit, talent, and achievements of the team will live on well beyond the project. I’m grateful to Xbox for the opportunity, to our partners for their support, and to the community for their belief in what we were creating.

“I leave with nothing but pride in what we accomplished together and excitement for what’s next – both for myself and for the amazing developers I was fortunate enough to work with.

“Here’s to new adventures and to celebrating the journey we’ve shared.”

Following his departure from Activision Blizzard, where he was senior vice president and head of development, Gallagher founded The Initiative, under the Xbox Game Studios umbrella, in April 2018.

In 2020, The Initiative announced its debut project: a reboot of Perfect Dark, being co-developed with Crystal Dynamics, where Gallagher had been the studio head for over a decade.

But, in July 2025, Microsoft closed The Initiative and canceled the Perfect Dark reboot as part of mass Xbox layoffs, which also saw Rare’s Everwild and ZeniMax’s unannounced project canceled.

Windows Central reported that the studio was closed due to the cancellation of the Perfect Dark reboot. The publication also shared an internal email, sent by the head of Xbox Game Studios, Matt Booty, which stated:

“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.”

Take-Two Interactive was reportedly in talks to fund and publish the Perfect Dark reboot, but the deal allegedly fell through due to the companies involved being “unable to come to terms over long-term ownership” of the IP.