Private Division Faces Closure: Take-Two To Sell Or Shutter Studios: Report

Intercept Games and Roll7, the two studios responsible for games like Kerbal Space Program 2 and OlliOlli World, are on the verge of closing down.

What Happened: Both Intercept Games and Roll7 are part of Private Division, which Take-Two Interactive Software Inc (NASDAQ:TTWO) formed in 2017 when it acquired Kerbal Space Program.

Private Division itself is on the verge of being shuttered unless it finds a buyer, IGN reported.

Despite earlier denials by Take-Two’s CEO Strauss Zelnick, insiders have confirmed to IGN’s Rebekah Valentine that Intercept Games will cease operations by June 28, with Roll7 also winding down.

Most of Private Division’s staff was laid off in April. Only a small team remained to oversee ongoing projects.

This decision follows earlier warnings in February about impending layoffs, followed by a complete withdrawal of support in April.

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Why It Matters: Remaining projects, such as Moon Studios’ No Rest for the Wicked and Wētā Workshop’s Tales of the Shire, are now hanging in the balance, as two other planned publishing deals have been scrapped.

Efforts to find buyers for the Kerbal Space Program IP, with or without Intercept Games, have hit roadblocks.

Talks with Paradox Interactive fell through, leaving the future of the IP uncertain.

Negotiations to sell Private Division to a private equity firm are ongoing.

Moon Studios faced allegations of oppressive work conditions.

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Image credits: Shutterstock.