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Darrell Gallagher Leaves Xbox After Perfect Dark Cancellation and The Initiative’s Shutdown

His parting note praises the team, with reported talks to move the reboot to an external publisher collapsing over long‑term IP ownership.

Overview

  • Gallagher confirmed his departure in a September 15 LinkedIn post, citing the wind-down of Perfect Dark and The Initiative.
  • Microsoft canceled the Perfect Dark reboot and closed The Initiative in July during mass layoffs and a broader resource refocus, according to internal communications reported publicly.
  • Take-Two was reportedly in talks to fund and publish the game, but negotiations fell apart over who would control the franchise in the long term.
  • The reboot, co-developed with Crystal Dynamics, drew strong interest after a 2024 Xbox showcase despite ongoing reports of development struggles.
  • Gallagher led The Initiative for roughly seven and a half years and said he leaves with pride in the team’s work and gratitude toward partners and the community.