Take-Two quietly kills the private division

In recent weeks, reports have surfaced 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 are part of a larger move by Take-Two to sell or shut down its entire independent label, Private Division.

Earlier this month, Take-Two CEO Strauss Zelnick told IGN that Take-Two “did not go out of business” its independent studios owned Intercept Games and Roll7. At the time, this was technically true; both studios are currently operational, but they won’t be for long. Speaking to several anonymous sources familiar with the matter, IGN independently confirmed that Intercept Games is expected to close its doors on June 28, after the notice period required by Washington state’s WARN law. Roll7 is also winding down operations, although a small team remains to work out the details.

Meanwhile, Take-Two wants to get rid of Private Division, one way or another. In February, IGN understands that employees were told layoffs were imminent, but with no details on how many, why or what was happening. Then, in late April, the label’s employees were informed by management that Take-Two would no longer support Private Division, at which point almost the entire staff was laid off.

A small team remains to support the remaining announced games that Private Division has publishing deals with: No Rest for the Wicked from Moon Studios (which is currently in Early Access), Tales of the Shire from Wētā Workshop, and a project without title from Game Freak. Take-Two walked away from two other publishing deals it previously made under the label – one agreement previously reported with Bloober Team, and another source described to us was rumored to be with Ghostrunner developer One More Level.

Although Private Division and its associated studios appear to be in danger of disappearing altogether, Take-Two is looking for other options…but with mixed success. The publisher is in talks to find a buyer for the Kerbal Space Program intellectual property, with or without Intercept Games attached. IGN has learned that discussions were held for such a deal with strategy game publisher Paradox Interactive, but they fell through, and it is unclear whether another buyer will materialize in time.

Take-Two is also in discussions to sell its private division and has attracted interest from a private equity firm. Although a deal has not yet been reached, sources knew that the conversations were being facilitated in part by people with ties to Moon Studios management. But two of my sources expressed misgivings about such a deal and its links, citing a VentureBeat Report 2022 alleging “oppressive” working conditions at Moon Studios. One source I spoke with 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 management for alleged mismanagement of the label, and denounced chief strategy officer and head of private division Michael Worosz for its poor leadership and mismanagement. Sources say the label was often faced with unreasonable sales targets and pressure 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 regarding Private Division’s fate, citing the team’s sincere mission to help small, 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 truly 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 problem has always been Take-Two and associated leadership forcing us The whole layoff situation proved what we already felt Take-Two doesn’t care about its employees.

Take-Two declined to comment for this article; Moon Studios did not respond in time for publication.

Rebekah Valentine is a senior reporter for IGN. Do you have a history tip? Send it to rvalentine@ign.com.