Take-Two May Close or Sell Private Division

Take-Two Interactive is reportedly considering closing or selling its indie publishing label, Private Division. Launched in 2017, Private Division has been responsible for publishing notable titles like The Outer Worlds and Kerbal Space Program 2. However, recent developments suggest that the label’s future is uncertain.

Reasons for the Potential Closure or Sale

Reports from IGN indicate that this decision is part of a broader cost-cutting plan at Take-Two. In April, Take-Two announced plans to lay off 5% of its workforce, roughly 600 employees. This restructuring also involves the closure of Intercept Games, the developer of Kerbal Space Program 2, and Roll7, known for OlliOlli World.

Take-Two CEO Strauss Zelnick initially denied the closures, but subsequent reports confirmed that both studios are indeed winding down operations. IGN’s report claims that employees at Private Division were informed in February about impending layoffs. By April, most of the staff had been let go after Take-Two decided to stop supporting the label.

Impact on Current Projects

Despite the layoffs, a small team remains at Private Division to support its remaining projects. These include Moon Studios’ No Rest for the Wicked, Wētā Workshop’s Tales of the Shire, and an untitled project from Game Freak. Take-Two has also backed out of deals with Bloober Team and One More Level, the developer of Ghostrunner.

Future

Take-Two reportedly attempted to sell the Kerbal Space Program IP to Paradox but failed to reach an agreement. The company is also in talks with a private equity firm to sell Private Division, although no deal has been finalized yet.

The situation remains fluid, with many speculating about the future of Private Division and its impact on the indie gaming scene. As the industry continues to evolve, the fate of these projects and studios hangs in the balance.