The private division of Take-Two’s independent label is reportedly in trouble

It looks like Grand Theft Auto editor Take two trying to get rid of his independent label, Private Division. This is according to a new IGN report which details how the company’s recent activities studio closures and mismanagement “quietly killed” the independent publisher.

According to IGNthe majority of the Private Division staff was laid off at the end of April, leaving only a small team to support titles already announced under the label like Moon Studio’s Early Access game. No rest for the wicked. The move follows a series of studio closures under the Private Division banner, including KErbal 2 Space Program developer Intercept Games and Rollerdrome Roll7 developer. While Take-Two CEO Strauss Zelnick claimed earlier this month, following a series of layoffs, that the company “I did not close these studios“, IGN reports that Intercept is expected to officially shut down on June 28 and Roll7 will also shut down its operations.

Sources speaking to IGN accused Take-Two of mismanagement and specifically called out the company’s chief strategy officer and head of the private division, Michael Worosz, for poor leadership. “The whole layoff situation proved what we already felt,” a source said, “Take-Two couldn’t care less about its employees.”

This series of events highlights the larger issues that Private Division faced under Take-Two, which, IGN he claims, is now trying to get rid of the label completely, one way or another. After April’s round of layoffs, Private Division staff were reportedly informed that Take-Two would no longer support the independent label. Although this makes it seem like Private Division is on the verge of closing, Take-Two is reportedly looking to sell the independent label and the studios that depend on it. IGN reports that Interactive paradoxthe publisher behind strategy games like Stellariswas in talks to acquire Intercept, but these have since fallen through.

As for the private division itself, there has been some interest from a private equity firm. These conversations would be facilitated by people connected to Moon Studios. The studio was the subject of a 2022 Report alleging an “oppressive” workplace. Sources speaking to IGN said everything in the report was “true and worse.” This link worries the members of Private Division about the uncertain future of the independent label.

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