Reports have surfaced in recent weeks that Take-Two is shutting down Kerbal Space Program 2 developer Intercept Games and OlliOlli World Roll7 developer. Now, IGN has learned that not only are these closures imminent, but they’re part of a larger move by Take-Two to sell or shut down the entirety of its indie label, Private Division.
Earlier this month, Take-Two CEO Strauss Zelnick told IGN that Take-Two “didn’t shut down” its indie studios owned by Intercept Games and Roll7. At the time, this was technically true; both studios are currently operational, but won’t be for long. Speaking to multiple anonymous sources familiar with the matter, IGN has independently confirmed that Intercept Games will close on June 28, following a notice period required by the Washington State WARN Act. Roll7, too, is finishing up similarly, though a small team remains to tie up the loose ends.
Meanwhile, Take-Two wants to unload Private Division, one way or another. In February, IGN understands that employees were told that layoffs were imminent, but were not given specifics on how many, why or what was happening. Then, in late April, the label’s employees were told by management that Take-Two would no longer be supporting Private Division, at which time almost the entire staff was laid off.
A small team remains to support the remaining announced games that Private Division has publishing deals with: Moon Studios’ No Rest for the Wicked (which is currently in early access), Wetā Workshop’s Tales of the Shire, and a project untitled by Game Freak. Take-Two has pulled out of two other publishing deals it had previously agreed to under the label — one previously reported agreement with Bloober Team, and another source described to us that it would have been with Ghostrunner developer One More Level.
Although Private Division and its associated studios seem in danger of disappearing entirely, Take-Two is looking for other options … albeit with mixed success. The publisher has been in talks to find a buyer for the Kerbal Space Program IP, with or without Intercept Games attached. IGN has learned that discussions took place about such a deal with strategy game publisher Paradox Interactive, but fell through, and it’s unclear if another buyer will materialize in time.
Take-Two is also in discussions to sell the Private Division and has received interest from a private equity firm. Although a deal has not yet been agreed upon, sources were aware that talks were being facilitated in part by individuals with ties to Moon Studios’ leadership. But two of my sources expressed concern about such a deal and its implications, citing a VentureBeat Report 2022 alleging “oppressive” working conditions at Moon Studios. One source I spoke to confirmed that “everything” in the report was “true and worse,” and another called the studio’s founders “cruel” and “a nightmare” to work with.
Everyone I spoke to for this story expressed frustration with Take-Two’s leadership for the label’s alleged mismanagement and called out chief strategy officer and head of Private Equity Michael Worosz for poor leadership. Sources say the label was often saddled with unreasonable sales targets and pressured to release games before they were ready, with Kerbal Space Program 2 being a notable recent example. And yet, everyone I spoke to shared feelings of sadness about Private Division’s fate, citing the team’s sincere mission to help smaller, independent studios, especially those that were newer and less established.
“The people at Private Division were amazing, talented, passionate individuals who loved what they did and also really cared about each other as a team and as people,” one person said. “We loved our projects, worked hard and created a great environment internally. I’d love to work with any of them again. The pain point was always Take-Two and the accompanying leadership forcing our hand. The whole layoff situation from work proved what we already felt that Take-Two couldn’t care less about its employees.”
Take-Two declined to comment for this piece; Moon Studios did not respond in time for publication.
Rebekah Valentine is a senior reporter for IGN. Got a story tip? Send it to [email protected].
