In recent weeks, Reports started coming out Take-Two Kerbal Space Program 2 is closed by developer Intercept Games and Ollie World developer Roll7. Now IGN has learned that these closures are not only imminent, but part of a larger move by Take-Two to sell or close its wholly independent label, Private Division.
Earlier this month, Take-Two CEO Strauss Zelnick told IGN that Take-Two “is not going to shut down.” His independent studios are Intercept Games and Roll7. At the time, this was technically true; Both studios are currently up and running, but won’t be for long. Speaking to multiple anonymous sources familiar with the matter, IGN has independently confirmed that Intercept Games is scheduled to close on June 28, following the notice period required by the Washington State WARN Act. Roll7 is also nearing its end, but still has a small team to solve outstanding problems
Meanwhile, Take-Two wants to eliminate the private sector one way or another. In February, IGN learned that layoffs were reported to be imminent, but no details were given on how many employees would be laid off, why or what was happening. Then, in late April, management informed the company’s employees that Take-Two would no longer support the specialty division, after which nearly all employees were laid off.
There is still a small team to support the rest of the announced games that Private Division has a publishing deal with: Moon Studios’ No Rest for the Wicked (which is currently in Early Access), Wētā Workshop’s Tales of the Shire, and an unnamed project by Game Freak. Take-Two has backed out of two other previously signed publishing deals on the title – one Agreement previously announced Blubber’s team and other sources told us that it could have been Ghostrunner’s developer One More Level.
The people in Private Division were amazing, talented, passionate people who loved what they did.
Although the private sector and its associated studios seem at risk of disappearing entirely, Take-Two is exploring other options – albeit with mixed success. Publisher Kerbal is in talks to find a buyer for the Space Program IP, with or without Intercept Games. IGN has learned that talks for such a deal have been with strategy game publisher Paradox Interactive, but they fell through and it’s unclear if another buyer will emerge in time.
Take-Two is also in talks to sell its private equity division and has attracted interest from a private equity firm. Although no deal has yet been reached, sources are aware that people with ties to Moon Studio’s leadership are partially handling the talks. But two of my sources expressed concern about such a deal and its implications, citing VentureBeat 2022 Message Allegedly “oppressive” working conditions at Moon Studios. One source I spoke to confirmed that “everything” in the report was “true and bad” and another described the studio’s founders as “cruel” and a “nightmare” to work with.
Everyone I spoke to for this story expressed frustration with Take-Two’s leadership for the mismanagement of the brand and blamed poor leadership from chief strategy officer and special operations president Michael Wars. According to sources, the company often faces unrealistic sales targets and is pressured to release games before they are ready, Kerbal Space Program 2 being a notable recent example. However, everyone I spoke to shared sadness at Private Division’s fate, citing the team’s dedicated mission to help small, independent studios, especially those that are newer and less established.
“The people in Private Division were amazing, talented, passionate people who loved their jobs and really cared about each other as a team and as people,” one person said. “We loved our project, worked hard and created a great environment internally. The point of pain was always Take-Two and the leadership that came with it that made us do it proved what we already felt at Take-Two: “Two couldn’t care less about their employees.”
Take-Two declined to comment for this article. Moon Studios did not respond in time for publication.
Rebecca Valentine is a senior reporter at IGN. Do you have a story tip? send it [email protected].
