Darrell Gallagher departs Xbox after the shutdown of The Initiative

Darrell Gallagher has departed from Xbox following the closure of The Initiative, which he once led. He disclosed his exit from the company in a post on LinkedIn on September 15, 2025. Reflecting on his period at Xbox, Gallagher described it as "an incredible journey" concluding with the wind-down of both the Perfect Dark project and the studio.

In his announcement, Gallagher expressed deep admiration for the team he guided, highlighting their shared dedication and creativity in revamping the well-known franchise. He noted the positive response and excitement from the public regarding their efforts was both motivating and appreciated.

Although this phase concluded sooner than anticipated, Gallagher emphasized that the team's spirit, skills, and successes extend beyond the closure of the project. He voiced gratitude towards Xbox, their partners, and the supporters who believed in their vision.

Commenting on his future, Gallagher expressed eagerness for his upcoming ventures, while cherishing the accomplishments shared with his talented colleagues. "Here’s to new adventures and to celebrating the journey we’ve shared," he remarked.

Gallagher established The Initiative in April 2018 after leaving his role as senior vice president and head of development at Activision Blizzard. Initially, in 2020, The Initiative unveiled a revival of Perfect Dark in collaboration with Crystal Dynamics, where Gallagher had previously served as the studio's head for many years.

However, in July 2025, Microsoft made the decision to shut down The Initiative and cancel the Perfect Dark reboot amidst widespread layoffs within the Xbox division. Affected projects also included Rare’s Everwild and an unnamed ZeniMax project, according to a report by Windows Central. The head of Xbox Game Studios, Matt Booty, explained in an internal email that these changes were necessary to realign priorities and optimize resources in light of the evolving industry climate, acknowledging the significant effort that went into each project and team.

Additionally, Take-Two Interactive was reportedly involved in discussions to finance and publish the Perfect Dark remake. However, these negotiations reportedly failed due to difficulties in agreeing on long-term intellectual property ownership between the parties.