Take-Two has launched a new 2K studio, which will be headed by former executives from The Initiative

The creation of a new studio at 2K is being led by Darrell Gallagher and Brian Horton, both previously with The Initiative, now part of Take-Two Interactive. Gallagher will oversee operations as senior vice president and studio head, while Horton assumes the role of vice president and creative head.

The announcement about their roles in the fresh venture, resulting from the shutdown of their prior studio, was made without further specifics, though 2K expressed eagerness to share future updates (IGN).

On LinkedIn, Gallagher referred to the new studio as "an ambitious opportunity unlike anything [he's] taken on before." Gallagher originally built and led The Initiative in 2018, partnering with Crystal Dynamics on a Perfect Dark reboot.

Previously, Horton was the creative director at Microsoft, managing the creative direction of The Initiative's efforts. However, Microsoft initiated significant layoffs in July 2025 within its gaming division, causing the closure of The Initiative and halting the Perfect Dark project (GamesIndustry.biz).

The layoffs were part of a strategic decision reducing Microsoft's workforce by 4%, affecting about 9,000 employees. In the aftermath, reports emerged that Take-Two was in discussions to back the Perfect Dark project, but negotiations for the franchise’s long-term ownership faltered (GamesIndustry.biz).

By September 2025, Gallagher had confirmed his exit from Xbox, reflecting on his time there as "an incredible journey" that concluded with The Initiative's cease in operations (GamesIndustry.biz).

While Gallagher expressed disappointment over the premature end of this chapter, he praised the spirits and achievements of his team, showing gratitude towards Xbox, their partners, and the community that backed their vision throughout the project.