Take-Two's Private Division Faces Massive Layoffs and Studio Closures
ICARO Media Group
In a recent development, video game publisher Take-Two's subsidiary, Private Division, has reportedly laid off a significant number of employees in various locations. According to GamesIndustry.biz, the "vast majority" of Private Division teams in Seattle, New York, Las Vegas, and Munich have been affected by the layoffs.
This news comes on the heels of reports earlier this week that Private Division is set to close down its in-house development studios, Roll 7 and Intercept Games. Roll 7 is known for games like Rollerdrome and OlliOlli World, while Intercept Games is the team behind Kerbal Space Program 2.
Established in 2017 with the aim of publishing games from talented independent developers, Private Division also has an office in Singapore, as mentioned on its website. Despite the recent layoffs and closures, Private Division is still actively involved in game releases. Moon Studios' No Rest for the Wicked was launched in early access recently, and Wētā Workshop's Tales of the Shire: A The Lord of the Rings Game is slated for release later this year.
Private Division had made headlines last May when it signed a new action-adventure IP from renowned studio Game Freak, known for the Pokémon franchise. The project, codenamed Project Bloom, was anticipated to be released before March 2026.
In a broader sense, Take-Two Interactive, the parent company of Private Division, had announced plans last month to undergo cost-cutting measures, which included laying off approximately 5% of its workforce, equal to around 600 individuals. Additionally, the company mentioned the cancellation of several unnamed game projects.
A spokesperson for Take-Two addressed the recent reports of studio closures and layoffs, commenting on the cost reduction program the company had initiated on April 16th. The program aims to identify efficiencies and enhance the company's margin profile while still investing in growth. The spokesperson stated that as part of this effort, the company is streamlining its pipeline, eliminating projects in development, and restructuring its organizational structure, resulting in the reduction of headcount and lesser future hiring needs. However, the spokesperson did not provide further details about the program.
It remains to be seen how these recent changes and layoffs will impact Private Division's future endeavors and the development of their upcoming games. Players and industry insiders will be keen to see how Take-Two's restructuring efforts will shape the company's trajectory moving forward.
Private Division, a subsidiary of Take-Two Interactive, has reportedly laid off a significant number of staff members across multiple locations. Meanwhile, the publisher is also closing down its internal studios Roll 7 and Intercept Games. Despite these setbacks, Private Division continues to work on new releases such as Moon Studios' No Rest for the Wicked and Wētā Workshop's Tales of the Shire: A The Lord of the Rings Game. Take-Two recently announced a cost reduction program involving layoffs and the cancellation of certain game projects. The company aims to streamline its operations and enhance its margin profile while still investing in growth. Further details about the program have not been disclosed.