Peake's career was ended prematurely due to several serious injuries. In a playoff game in 1996, racing to beat Pittsburgh Penguins defenseman J.J. Daigneault for the puck in order to nullify a potential icing call, he shattered his right heel causing him to undergo extensive surgeries and costing him 67 games of the 1996–97 NHL season. He returned in time to play three games with the Portland Pirates, afterwards breaking his right hand, and four games with the Capitals, before suffering a concussion in an automobile accident in a vehicle being driven by teammate Steve Konowalchuk. He remained out for the first 16 games of the 1997–98 NHL season, due to continued pain in his heel. In his lone game with the Capitals in 1997–98, he tore some tendons in his right ankle and never played professionally again. He officially retired from playing professional ice hockey on September 1, 1998.