Darrell Gallagher has departed from Xbox after the closure of The Initiative

Darrell Gallagher, who previously led The Initiative, has exited his role at Xbox. His departure follows the earlier closure of the studio this year.

Gallagher shared news of his exit in a LinkedIn post on September 15, 2025. He described his tenure as an "incredible journey" that concluded with the closing of The Initiative and the wrap-up of the Perfect Dark project.

In his message, Gallagher commended the team he built and led, expressing pride in their efforts to reinvent a classic franchise with creativity and dedication.

He mentioned the positive feedback and enthusiasm the project garnered, emphasizing the lasting impact of the team's achievements despite the project's premature end.

Gallagher expressed gratitude toward Xbox, their partners, and the community, highlighting pride in the work achieved and optimism for future endeavors for himself and his teammates.

The Initiative was established by Gallagher in April 2018 under Xbox Game Studios, following his senior leadership role at Activision Blizzard. Prior to this, he served as studio head at Crystal Dynamics for over ten years.

Their first project, a reboot of Perfect Dark, was announced in 2020 and involved collaboration with Crystal Dynamics.

However, in July 2025, Microsoft decided to shut down The Initiative and cancel the Perfect Dark reboot amid widespread layoffs at Xbox, which included cuts to Rare’s Everwild and a secret ZeniMax project.

Windows Central noted that the studio's closure resulted from the cancellation of the Perfect Dark reboot. An internal memo by Matt Booty, head of Xbox Game Studios, explained these actions were part of a broader strategy to realign team priorities and resources in a transforming industry.

Additionally, reports suggested that Take-Two Interactive was in discussions to finance and publish the Perfect Dark reboot. However, negotiations reportedly fell through because the parties could not agree on long-term control over the intellectual property.