In recent weeks, there have been reports that Take-Two is shutting down Kerbal Space Program 2 developer Intercept Games and OlliOlli World developer Roll7. Now, IGN has learned that not only are these closures imminent, but they’re part of a larger move by Take-Two to either sell or shut down its entire indie label, Private Division.
Earlier this month, Take-Two CEO Strauss Zelnick told IGN that Take-Two “didn’t close” own independent studios Intercept Games and Roll7. This was technically true at the time; both studios are currently up and running, but won’t be for long. Speaking to several anonymous sources familiar with the matter, IGN independently confirmed that Intercept Games will close on June 28, after the notice period required by the Washington State WARN Act. Roll7 also ends 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 understood that staff had been told layoffs were imminent, but did not give specifics on how many, why or what was happening. Then, at the end of April, the label’s staff were informed by management that Take-Two would no longer support Private Division, at which time almost all staff were let go.
A small crew 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), Wētā Workshop’s Tales of the Shire, and an untitled project from Game Freak. Take-Two backed out of two other publishing deals it had previously agreed to under the brand – one previously announced trade with Bloober Team and the other resources described to us would be with Ghostrunner One More Level developer.
Although it looks like Private Division and its associated studios may be out of business altogether, Take-Two is looking at other options… albeit with mixed success. The publisher is in talks to find a buyer for the Kerbal Space Program IP, with or without Intercept Games attached. IGN has learned that there were discussions about such a deal with strategy game publisher Paradox Interactive, but they fell through, and it’s unclear if another buyer will emerge over time.
Take-Two is also in talks to sell the Private Division and has found interest from a private equity firm. Although a deal has yet to be agreed upon, sources were aware that the talks were being facilitated in part by individuals connected to Moon Studios management. However, two of my sources expressed concern about such an agreement and its implications, referring to a VentureBeat Report 2022 alleged “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 founder “cruel” and a “nightmare” to work with.
Everyone I spoke to for this story expressed frustration with Take-Two management over the label’s alleged mismanagement, calling out chief strategy officer and head of private equity Michael Worosz for mismanagement and mismanagement. Sources say the publisher 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 indie studios, especially newer and less established ones.
“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,” said one person. “We loved our projects, worked hard, and fostered a great environment internally. I would love to work with any of them again. The problem has always been Take-Two and the associated management that forced us. The whole layoff situation showed what we already felt that Take-Two can’t take care of its employees.”
Take-Two declined to comment for the 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 rvalentine@ign.com.