Darrell Gallagher, head of The Initiative and one of the key figures behind Xbox’s attempted revival of Perfect Dark, has officially announced his departure from Microsoft. His exit comes in tandem with the closure of The Initiative and the cancellation of its long-anticipated reboot of Rare’s classic spy shooter.
In a statement shared on LinkedIn, Gallagher reflected on the end of his tenure at Xbox. “After an incredible journey, my time at Xbox has come to a close with the wind-down of Perfect Dark and The Initiative,” he wrote. Gallagher expressed pride in the team he assembled and the work they put into the project, despite its premature ending. “The public reception and excitement for what we were building has been inspiring and deeply appreciated by all of us,” he added, while thanking colleagues, partners, and the community for their support throughout development.
Perfect Dark was announced at The Game Awards in 2020 as the flagship project of The Initiative, a new first-party studio created under Xbox Game Studios. The reboot sought to reimagine the franchise with a futuristic setting that combined espionage, corporate intrigue, and ecological themes. However, the game soon became the subject of reports about significant staff departures and internal creative disagreements.
In 2021, Crystal Dynamics joined the effort to accelerate production, but challenges persisted. A first gameplay trailer was finally shown during the Xbox Games Showcase in June 2024, only for the project to be canceled a year later. Microsoft confirmed in July 2025 that both Perfect Dark and The Initiative would be shut down as part of broader restructuring and layoffs within the company.
Gallagher, whose past career includes leadership roles at Crystal Dynamics and Activision, emphasized that while the project ended sooner than anticipated, the spirit and achievements of the team would continue to resonate. “I leave with nothing but pride in what we accomplished together and excitement for what’s next,” he stated.
The cancellation of Perfect Dark marks the end of a high-profile but troubled chapter for Xbox. For many fans, it also leaves lingering questions about the future of dormant franchises under Microsoft’s stewardship, as well as the long-term strategy for its first-party portfolio.
