Grand Theft Auto and Borderlands publisher, Take-Two, is facing backlash as reports indicate the potential sale or shutdown of two development studios and its indie label. Roll7, the developer of OlliOlli World, and Intercept Games, the studio behind Kerbal Space Program 2, may be affected, along with Take-Two's indie label, Private Division.

According to sources verified by IGN, the closures of Roll7 and Intercept Games are said to be imminent, despite Take-Two CEO Strauss Zelnick denying the closure of the indie teams earlier this month. Intercept Games is reportedly set to close on June 28th, in accordance with the Washington State WARN Act, while Roll7 is said to be winding down as well.

A small team will be retained to provide support for ongoing projects such as No Rest for the Wicked by Moon Studios, Tales of the Shire by Wētā Workshop, and an untitled game by Game Freak. However, insiders claim that Private Division has withdrawn from collaborations with Ghostrunner developer One More Level and Bloober Team, the team behind the Silent Hill 2 Remake, leading to layoffs at the indie label in April.

Industry insiders allege that the decision to close or sell these entities is driven by Take-Two's pursuit of various strategies. One possibility is the potential sale of Private Division to a private equity firm. Staff remaining at Private Division have voiced concerns about "unreasonable sales targets" and being pressured to release games prematurely, with the troubled development of Kerbal Space Program 2 being cited as a recent example.

Sources highlight the talented and passionate individuals at Private Division, who were dedicated to their projects and fostered a positive working environment. However, they claim that the main issue stemmed from the leadership and directives from Take-Two, suggesting that the company shows a lack of concern for its employees.

"The people at Private Division were amazing, talented, passionate individuals who loved what they did and also really cared about each other as a team and as people," revealed an anonymous source. "The pain point was always Take-Two and associated leadership forcing our hand. The whole layoff situation proved what we already felt. Take-Two could not care less about its employees."

The fallout from these potential closures and layoffs raises questions about the treatment of employees within the video game industry and the responsibility of publishers towards their development teams. As the situation develops, many will be watching with concern for the affected studios and the future of the projects they were working on.