Kerbal Space Program 2 Studio Apparently Shuttered Amid Layoffs, Take-Two Responds [Update]

Intercept Games is among the many casualties of Take-Two Interactive’s layoffs, as its parent company is laying off 70 people from the developer behind the Kerbal Space Program 2.

As reported by GameDeveloper.com, a Worker Adjustment and Retraining Notification (WARN) notice was filed in Washington state this past Monday, revealing that Take-Two Interactive was laying off 70 workers based in Seattle as part of a closure. Though the WARN notice lists Take-Two specifically, the developer impacted in question appears to be Intercept Games, a studio based in Seattle.

Intercept Games did not immediately respond to IGN’s request for comment, though the studio’s website did have three job postings based in Seattle.

In a statement sent to IGN, a Take-Two spokesperson did not explicitly confirm Intercept Games’ closure, reiterating that it was not “providing additional details” on its plans to reduce staff across all its studios. However, the company revealed that the publisher, Private Division, will provide post-launch support for Kerbal Space Program 2, as the developer is seemingly shuttered.

You can read the statement from Take-Two Interactive below.

On April 16th, Take-Two announced a cost reduction program to identify efficiencies across its business and to enhance the Company’s margin profile, while still investing for growth. As part of these efforts, the Company is rationalizing its pipeline and eliminating several projects in development and streamlining its organizational structure, which will eliminate headcount and reduce future hiring needs. The Company is not providing additional details on this program.

On April 18th Private Division successfully launched Moon Studio’s No Rest for the Wicked. The label continues to make updates to Kerbal Space Program 2 and plans to release Wētā Workshop Game Studio’s Tales of the Shire: A The Lord of the Rings Game in the second half of 2024.

Bloomberg’s Jason Schreier has since confirmed that Intercept Games as well as Roll7, the studio behind OlliOlli World, will be closed.

Take-Two Interactive announced last month that it was laying off around 5 percent, or 579 workers, while canceling several projects. The announcement came months prior when CEO Strauss Zelnick claimed the company had “no plans” to lay off anyone but did reveal that it was undertaking a cost reduction plan.

Kerbal Space Program 2 was released over a year ago in early access. A sequel to 2015’s Kerbal Space Program, the sequel has been met with mixed reception from critics and players, with some at release criticizing poor performance and bugs as its most significant drawbacks.

The video game industry has been racked with layoffs, with EA, PlayStation, and Xbox among those affected. You can read our full report here.

Taylor is a Reporter at IGN. You can follow her on Twitter @TayNixster.