In recent weeks, reports have surfaced that Take-Two has shut down Kerbal Space Program 2 developer Intercept Games and OlliOlli World developer Roll7. Now IGN has learned that these closures are not only imminent, but that they are part of a larger move by Take-Two to sell or close its indie label, Private Division.
Earlier this month, Take-Two CEO Strauss Zelnick told IGN that Take-Two “wasn’t quitting” its own indie studios Intercept Games and Roll7. At the time, that was technically true; both studios are currently operational, but that won’t be for long. Speaking to multiple anonymous sources familiar with the matter, IGN independently confirmed that Intercept Games will close on June 28, following the notice period required by the Washington State WARN Act. Roll7 also ends the same way, although there is still a small team left to tie up the loose ends.
Meanwhile, Take-Two wants to offload Private Division somehow. IGN understands that employees were told in February that layoffs were imminent, but no details were given on how many, why or what was happening. Subsequently, the label’s employees were informed by management in late April that Take-Two would no longer support Private Division, after which almost all staff were laid off.
A small crew remains to support the remaining announced games with which Private Division has publishing agreements: No Rest for the Wicked from Moon Studios (currently in early access), Tales of the Shire from Wētā Workshop, and an untitled project from Game Freak. Take-Two has pulled out of two other publishing deals it previously agreed to under the label: one previously reported deal with Bloober Team, and another source described to us that would have been from Ghostrunner developer One More Level.
Although Private Division and its associated studios are in danger of disappearing completely, 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 to it. IGN has learned that discussions about such a deal were held with strategy game publisher Paradox Interactive, but they fell through, and it’s unclear whether another buyer will materialize in time.
Take-Two is also in talks to sell Private Division and has found interest from a private equity firm. While a deal has not yet been agreed upon, sources were aware that talks are being facilitated in part by individuals with connections to Moon Studios leadership. But two of my sources expressed concerns about such a deal and its connections, stating: 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 founders “cruel” and “a nightmare” to work with.
Everyone I spoke to for this story expressed frustration with Take-Two’s leadership over alleged mismanagement of the label, and called out Chief Strategy Officer and Private Division head Michael Worosz for his 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 all I spoke to shared feelings of sadness surrounding the fate of Private Division, citing the team’s genuine 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 really cared about each other as a team and as people,” one person said. “We loved our projects, we worked hard and we created a great environment internally. I would love to work with any of them again. The pain point was always Take-Two and the associated leadership that pushed us. The whole layoff situation proved what we already felt was that Take-Two didn’t care 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. Do you have a story tip? Send it to rvalentine@ign.com.