Take-Two Interactive recently announced that it will be shutting down two of its subsidiary studios, Intercept Games and Roll7. Intercept Games had been working on the highly anticipated sequel Kerbal Space Program 2, while Roll7 is known for developing titles like OlliOlli World and Rollerdrome.
This news comes after Take-Two stated in April that it would be laying off employees and canceling some games. An internal memo obtained by Bloomberg revealed that about 5% of Take-Two’s staff, around 600 employees, would be laid off as part of a company restructuring. The closures of Intercept Games and Roll7 are part of these wider reductions happening at the video game publisher.
Take-Two plans to provide severance packages to the affected employees at Intercept Games and Roll7. However, the studio closures mean that the futures of Kerbal Space Program 2 and other games in development at those studios are now uncertain.
Intercept Games, located in Seattle, had been working on the highly anticipated sequel to Kerbal Space Program prior to its closure by parent company Take-Two. The original Kerbal Space Program built a dedicated fan base around its complex but engaging rocket science-based gameplay. Kerbal Space Program 2 entered early access in 2020 through Take-Two’s Private Division label, but its development status is now unclear with Intercept Games shut down.
London-based Roll7 had developed a string of well-received extreme sports titles like OlliOlli World and Rollerdrome under Take-Two Interactive. Rollerdrome had just launched in August 2022 to positive critical reviews before Take-Two elected to close Roll7 in a cost-cutting move. The skating-shooting hybrid game stood out for its slick visual style and challenging gameplay.
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Take-Two Interactive has not made any official comments about the future of Kerbal Space Program 2 or any other games affected by the Intercept Games and Roll7 closures. The decision to shut down the studios comes amid wider economic challenges facing the video game industry. Several major publishers and developers including Sony, Microsoft, and Nintendo have trimmed portions of their workforces with layoffs in recent months.
As parent company of major developers like Rockstar Games and 2K behind blockbuster series like Grand Theft Auto and NBA 2K, Take-Two has established itself as one of the gaming industry’s largest publishers.
The shutdowns of the Kerbal Space Program 2 developer Intercept Games and action sports specialist Roll7 reflect Take-Two’s attempt to cut costs to match the difficult market conditions. However, leaving these games without studios backing their completion could frustrate fans who were waiting on new releases like Kerbal Space Program 2.
The closures continue an unfortunate period of layoffs and studio shutdowns that have plagued the otherwise fast-growing video game business. Rising inflation, high interest rates, and the threat of recession have combined to dampen consumer demand and force cutbacks across the gaming world.
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