Take-Two only just laid off 5% of its staff in April, but it’s now reportedly looking to shift its indie publishing label Private Division, whether by selling it or simply closing it.
Back in April, Take-Two announced it was laying off around 500 staff, and the following month saw a report that the studios behind Rollerdrome and Kerbal Space Program 2 were both being shut down too. Take-Two CEO Strauss Zelnick claims this didn’t happen, despite evidence to the contrary, and a new report from IGN states that not only are these closures “imminent” but they’re a “part of a larger move by Take-Two to either sell off or shut down the entirety of its indie label, Private Division.” IGN claims it was able to independently confirm that Kerbal Space Program dev Intercept Games is set to close on June 28, with Roll7 also winding down, with a small team remaining to tie up loose ends.
When it comes to Private Division, though, it’s a bit of a different story. IGN reports that in February, employees were told layoffs were coming, but no details on how many, why, or what was happening. In April an update came saying that Take-Two “would no longer support Private Division, at which time almost all the staff were laid off.” There is still a small team left to support still in the works titles like Moon Studios’ No Rest for the Wicked, Wētā Workshop’s Tales of the Shire, and Pokemon studio Game Freak’s unnamed new title. A deal was also set for a new title from Silent Hill 2 remake developer Bloober Team, though this has reportedly fallen through, with Bloober now looking for alternatives.
Take-Two is apparently now looking to sell off Private Division, and has apparently found interest from a private equity firm, but this isn’t a guarantee it will survive. A deal hasn’t been set just yet, but Moon Studios leadership is apparently helping with talks – this has drawn some concern from IGN’s sources though, as a 2022 VentureBeat report alleged “oppressive” work conditions at the Ori developer (IGN says one source it spoke to confirmed “everything” in the report was “true and worse” and another called the studio’s founders “cruel”).
No matter what happens to Private Division, it’s sounding like a sad and difficult situation overall, and is just the latest frustrating move in the games industry that has seen thousands of layoffs over the past year.