Take-Two CEO Strauss Zelnick has claimed that the publisher didn’t shut down Private Division studios Roll7 and Intercept Games, despite reports suggesting it planned to.
02.05.2024 - 10:23 / gamesindustry.biz / Private Division
More details have emerged about the ongoing layoffs at Take-Two Interactive, with reports suggesting the publisher has shut down two indie-size studios.
Bloomberg reported it has seen internal documentation that reveals UK developer Roll7, known for the OlliOlli series and Rollerdrome, is planned for closure with the publisher working on severance agreements for affected staff.
The documents also detail plans to close Intercept Games, the Seattle-based studio behind Kerbal Space Program 2.
Yesterday, GamesIndustry.biz reported on a WARN notice filed in Washington State, revealing that a Take-Two-owned Seattle office will close this June and affecting 70 employees. Bloomberg noted this is approximately the same number of staff who work at Intercept Games.
Both studios are part of Private Division, Take-Two's label for publishing indie games. The label formed Intercept Games in 2020 after taking over development of Kerbal Space Program 2, and acquired Roll7 in 2021.
Bloomberg reported other Private Division staff have been affected by the layoffs, with a source telling GamesIndustry.biz that the "vast majority" of the label's teams in Seattle, New York, Las Vegas and Munich have been let go.
When asked for confirmation, Take-Two issues the same statement as yesterday, included below in full:
"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."
Take-Two announced last month that it would be laying off 5% of all staff, approximately 580 people, in 2024 as part of the publisher's third cost-cutting program since February 2023.
Take-Two CEO Strauss Zelnick has claimed that the publisher didn’t shut down Private Division studios Roll7 and Intercept Games, despite reports suggesting it planned to.
Microsoft are shutting down multiple game studios including Redfall developers Arkane Austin and the creators of Hi-Fi Rush, Tango Gameworks. The news was delivered via an email to staff from Xbox boss Matt Booty which has since been seen by IGN. Booty calls the decision a "consolidation of our Bethesda studio teams, so that we can invest more deeply in our portfolio of games and new IP."
Xbox has reportedly shut down Arkane Austin, Tango Gameworks, Alpha Dog Studios, and Roundhouse Games, with members of the latter team being folded into ZeniMax Online Studios. Layoffs have been a harsh reality of the video game industry these past couple of years, with companies of all sizes laying off significant portions of their staff or shutting down studios entirely. Xbox itself has engaged in multiple waves of layoffs this past year.
Microsoft is shutting down four of the studios it picked up as part of the 2020 Bethesda acquisition, as reported by IGN.
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Xbox Game Studios head Matt Booty has announced the shutdown of Arkane Austin and Tango Gameworks amidst huge cuts at Bethesda.
Xbox is closing down four Bethesda studios, including Redfall developer Arkane Austin and Hi-Fi Rush studio Tango Gameworks.
Long-running Netherlands-based game developer Paladin Studios has closed its doors.
Take-Two Interactive recently joined the ever-growing list of video game companies implementing layoffs, with the company announcing that it was cutting 5% of its workforce (roughly 600 jobs) as part of a wider cost-saving initiative that would also see projects being cancelled. Unfortunately, it seems one publishing label operating under the company has been hit the hardest.
Take-Two publishing label Private Division has reportedly laid off the “vast majority” of its teams in Seattle, New York, Las Vegas and Munich.
Mobile and indie game developer Paladin Studios has ceased its operations.
This one's a bummer. Mega-publisher Take-Two Interactive is shuttering Rollerdrome studio Roll7 and Kerbal Space Program 2 team Intercept Games, according to paperwork seen by Bloomberg.