Take-Two Interactive has brought on Darrell Gallagher and Brian Horton to establish a brand new development studio under its 2K publishing label. The pair will lead work on an original IP rather than an existing franchise.
Both Gallagher and Horton previously worked on Microsoft’s Perfect Dark reboot at The Initiative before the project was cancelled in July 2025. Gallagher served as studio head while Horton worked as a creative director.
The two executives built their reputations at Crystal Dynamics during the Tomb Raider reboot era. Gallagher led the studio through the 2013 Tomb Raider relaunch and Rise of the Tomb Raider in 2015. Horton held art direction and creative leadership roles on those same projects.
Microsoft formed The Initiative in 2018 as a prestige Santa Monica studio built around veteran talent. The company dubbed it a “AAAA” operation and announced Perfect Dark as its debut project in 2020.
The Initiative was closed in July 2025 as part of numerous rounds of layoffs at Microsoft. The Perfect Dark reboot was cancelled after more than seven years in development.
A pattern emerges at 2K
This hiring fits 2K’s recent strategy of building new studios around experienced leaders. The publisher formed Cloud Chamber to develop the next BioShock game and established 31st Union under former Sledgehammer Games head Michael Condrey. Both studios have spent years in development without releasing projects.
2K maintains a portfolio spanning single-player narrative games like BioShock and Mafia alongside massive sports franchises like NBA 2K. Parent company Take-Two generates most of its revenue from Rockstar’s Grand Theft Auto and Red Dead Redemption series.
The publisher has shown willingness to fund long development cycles. It also has a track record of restructuring or shuttering studios when projects stall. Irrational Games downsized dramatically after BioShock Infinite. Hangar 13 underwent multiple internal reboots after Mafia III.
