Take-Two announces the closure of Roll7 and mass layoffs for Intercept Games. Read on to find out details of the closure, layoffs, and the official statements made by Take-Two.
Take-Two Interactive Announces Closure of Roll7 and Intercept Games Studios
Restructuring at Take-Two
In a move reflective of ongoing challenges within the video game industry, Take-Two Interactive Software Inc. has announced plans to shut down two of its subsidiaries, Roll7 and the Take-Two Seattle office (which is believed to be Interactive Games), as reported by Bloomberg today. The decision comes as part of a broader strategy to streamline operations, which includes a significant reduction in the workforce across its divisions.
Roll7, a London-based studio recognized for its action game Rollerdrome, is set to be closed by Take-Two, as conveyed in a notice to staff. The closure will entail the provision of severance agreements for affected employees. Similarly, Intercept Games, based in Seattle and known for its space flight simulation title Kerbal Space Program 2 faces an uncertain future, as indicated by a WARN notice filed in Washington on April 29. The notice reveals that Take-Two will be laying off 70 workers in Seattle, roughly the total number of employees at Intercept Games, as part of a "closure" on June 28, 2024.
The decision follows Take-Two's announcement of layoffs in March, affecting approximately 5% of its workforce, equating to around 600 individuals. Notably, both Roll7 and Intercept Games were under the umbrella of Private Division, a label established by Take-Two in 2017 to oversee the publishing of small and mid-sized games. Other employees within the Private Division have also been impacted by the broader layoff initiative.
Take-Two's Response Amid Closure Controversy
Alan Lewis, Vice President for Communications at Take-Two, offered limited insight into the decision, as reported by Game Developer. He states, "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,"
Take-Two declined to confirm if Intercept Games has been affected by the layoffs, despite the closure of their Seattle office mentioned in a WARN notice. Additionally, several employees of Kerbal Space Program have indicated on Reddit their pursuit of new employment opportunities, with one individual even taking to Twitter (X) to announce their layoff.
However, Lewis explained that its Private Division publishing label will continue to support Kerbal Space Program 2. "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." Lewis states.
The video game industry has witnessed a series of cutbacks over the past year, with major players such as Sony Group Corp., Electronic Arts Inc., and Microsoft Corp. implementing workforce reductions and closing subsidiaries. The closure of Roll7 and Intercept Games reflects broader industry trends and the challenges faced by companies navigating an increasingly competitive landscape.
As Take-Two Interactive moves forward with its restructuring efforts, the fate of its affected employees and the future direction of its game development initiatives remain subjects of keen interest within the gaming community.
Source:
Bloomberg Article
WARN Notice
Intercept Games Staff on Reddit
Game Developer Article
Employee Laid Off Twitter Post
