Take-Two Reaffirms Kerbal Space Program 2 In Development, Amid Rumors They Are Closing Two Studios

Take-Two Interactive has confirmed that they are continuing development of Kerbal Space Program 2, while not responding to rumors that they are shutting down two studios.

As reported on Video Games Chronicle, Jason Schreier claims that the company’s restructuring following their acquisition of Gearbox Studios will affect two small studios under their Private Division label. Roll7, who made their name on the OlliOlli games, and more recently released Rollerdrome, and Intercept Games, who develop Kerbal Space Program 2, will be closing because of the restructuring.

Roll7 may have been a real casualty of Take-Two’s decisions in this situation. While their OlliOlli games were well regarded, their step up to AA with Rollerdrome seems to have been a success. They tweeted about reaching the 1 million players milestone last March 20.

On the other hand, Intercept Games has an even messier history with Take-Two. Originally, Kerbal Space Program 2 was being developed by Star Theory Games, but a break in their relationship with Take-Two led to them being replaced by Intercept Games. And we come back to Jason Schreier here.

According to Schreier, Take-Two offered to buy Star Theory Games, but their owners did not like the terms of the deal. Take-Two’s response was to start Intercept Games, and then poach the staff away from Star Theory Games. Star Theory Games subsequently closed when they couldn’t find new projects.

Now, GameDeveloper reports on Take-Two’s statement on this report. They said:

“On April 16th, Take-Two announced a cost reduction program to identify efficiencies across its business and to enhance the Company’s margin profile, while still investing for growth. As part of these efforts, the Company is rationalizing its pipeline and eliminating several projects in development and streamlining its organizational structure, which will eliminate headcount and reduce future hiring needs. The Company is not providing additional details on this program.

On April 18th Private Division successfully launched Moon Studio’s No Rest for the Wicked. The label continues to make updates to Kerbal Space Program 2 and plans to release Wētā Workshop Game Studio’s Tales of the Shire: A The Lord of the Rings Game in the second half of 2024.”

It seems that Take-Two has taken advantage of the legal provisions just enough to avoid having to confirm these studio closures. GameDeveloper also confirmed that Take-Two is laying off 70 people from Seattle, which is Intercept Games’ location. Take-Two filed a WARN Notice confirming plans to fire staff 60 days in advance, in accordance with local laws, but again, they figured out that they didn’t have to name the studios.

In spite of a lack of official confirmation, it seems safe to assume that these closures are real. GameRanx wishes the exiting employees at Take-Two the best, and hope they can find placement back in the video game industry in the near future.