In recent weeks, reports surfaced that Take-Two was shutting down Intercept Games’ Kerbal Space Program 2 and Roll7’s OlliOlli World. Now, IGN has learned that not only are these closures imminent, but they’re also 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 shut down” owned by indie studio Intercept Games and Roll7. At the time this was technically correct; both studios are currently up and running, but won’t be for much longer. 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. And Roll7 is shutting down in a similar way, although a small team remains to solve the problems.
Meanwhile, Take-Two wants to relieve Private Division, one way or another. IGN learned in February that employees were told layoffs were imminent, but did not provide specifics on how many, why or what was happening. Then, at the end of April, management told the label’s employees that Take-Two would no longer support Private Division, and almost all of the staff were then 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), Wētā Workshop’s Tales of the Shire, and Game Freak’s unnamed project. Take-Two backed out of two other publishing deals it previously held under the label – one previously reported job with Bloober Team, and other sources described to us that it would be with Ghostrunner developer One More Level.
While Private Division and its associated studios appear to be in danger of disappearing altogether, Take-Two is looking for other options…albeit with mixed success. The publisher was in talks to find a buyer for the Kerbal Space Program IP, with or without Intercept Games attached. IGN has learned that such a deal was in talks 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 encountered interest from a private equity firm. While a deal has not yet been agreed upon, sources were aware that the talks were being facilitated in part by individuals connected to Moon studio management. But two of my sources expressed concern about such a deal and its connections, citing a VentureBeat’s 2022 Report citing “oppressive” working conditions at the Moon studio. 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.
All of those I spoke to for this story expressed frustration with Take-Two’s leadership over the label’s alleged mismanagement and called out chief strategy officer and head of private equity Michael Worosz for poor leadership. Sources say the publisher was often saddled with unreasonable sales targets and pressured to release games before they were ready, Kerbal Space Program 2 being a recent example. Still, all those I spoke with shared feelings of sadness about Private Division’s fate, citing the team’s sincere mission to help smaller, independent studios, especially those that are newer and less established.
“The people in 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 fostered a great environment internally. I would love to work with any of them again. The pain point has always been Take-Two and the associated leadership that forced us. The whole layoff situation proved that already we felt. Take-Two couldn’t care less about its employees.”
Take-Two declined to comment on 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 [email protected].