In a recent move to cut costs and streamline operations, game publisher Take-Two Interactive has announced the closure of Intercept Games, the studio responsible for Kerbal Space Program 2. This decision comes as part of Take-Two's wider layoff announcement, impacting approximately 70 employees in their Seattle office.

The closure notice for Intercept Games was made public, marking the end of the studio that was based in Seattle, where Take-Two's parent company is located. Confirming the closure, several posts from former Intercept employees have surfaced on social media platforms and LinkedIn, revealing that they have been laid off or are now actively seeking new employment opportunities.

Adding to the uncertainty surrounding Intercept Games, job openings on the studio's website appear to be broken, further suggesting the closure of the company.

Take-Two spokesperson Alan Lewis addressed the closure in a statement to GamesIndustry.biz, explaining the rationale behind the decision. Lewis emphasized that Take-Two had implemented a cost reduction program to identify efficiencies and enhance its margin profile while also investing for growth. As part of this effort, the company decided to streamline its development pipeline by eliminating certain projects and restructuring its organizational structure, resulting in layoffs and reduction in future hiring needs. However, no specific details were provided regarding the program.

This closure has raised concerns about the fate of Kerbal Space Program 2, as Intercept Games was the primary development team for the game and employed around 70 individuals. Multiple LinkedIn profiles of former Intercept employees expressing their job search status have led to speculation that the future of the highly anticipated game is now uncertain.

Take-Two had previously announced plans to lay off approximately 550 employees last month, which accounted for five percent of their overall workforce of 11,000. Alongside the layoffs, the company also canceled several ongoing projects.

In response to the speculation surrounding Kerbal Space Program 2, a spokesperson from Take-Two's subsidiary, Private Division publishing label, confirmed their continued support for the game. This reassurance came after Kerbal Space Program 2's creative director, Nate Simpson, published a development blog post, affirming that the team was still working on the previously promised Colonies update.

Further details and comments from Take-Two Interactive are currently being sought after, as the industry awaits more information on the future of Intercept Games and the status of Kerbal Space Program 2.