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GTA 6 owner to shut Rollerdrome and Kerbal Space Program 2 studios

Kerbal Space Program 2 continues to live on despite Take-Two shutting down Intercept Games, while Roll7 has also rolled into the firm’s crosshair.

Take Two layoffs Kerbal Space Program 2 Rollerdrome: a green alien in an astronaut suit next to a woman in a crash helmet

Take-Two Interactive, the firm behind some of the biggest properties in gaming like GTA 6, is set to shutter two of its studios as part of its ongoing “cost reduction program.” Based on documents reviewed by Bloomberg, UK-based developer Roll7 and Kerbal Space Program 2 maker Intercept Games are in the firing line.

Take-Two’s decision to stake two of its studios is disappointing but not surprising, considering that it said last month that it would lay off 5% of its staff. According to Bloomberg’s report, “severance agreements” will be offered to staff at Roll7, the mind behind one of the best sports games in Rollerdrome, as well as radical skateboarding action-platformer OlliOlli World. The former recently became one of the best Xbox Game Pass games when it was added to the service, and was one of our Game of the Year nominations back in 2022.

As for Intercept Games, things seem to be a little more complicated. In a Worker Adjustment and Retraining Notification (WARN) that was filed last month, Take-Two disclosed that 70 workers would be laid off in Seattle – home of Intercept Games. With Bloomberg now reporting that the studio is closing its doors permanently, this should spell the end of Kerbal Space Program 2 – the space game’s been stuck in Steam Early Access since February last year.

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However, Take-Two has stated that publisher Private Division will continue to steer the ship and “make updates” to Kerbal 2. Its continued development despite the layoffs was later confirmed by the game’s Twitter page: “We’re still hard at work on KSP2,” it says. “We’ll talk more when we can.” How this will actually materialize is currently up in the air – it’s hard to update a game without any devs. By the looks of things, the game will be kept ticking over until either a new studio can be found, or it’s sunsetted altogether. It’s safe to say that we’re now not hopeful the game will make it to Xbox and PlayStation consoles like its predecessor did.

It was only at the end of March that Take-Two announced that it would be taking Borderlands developer Gearbox off of Embracer’s hands in a $460 million deal. As such, this latest round of layoffs feels particularly bitter. Combine that with the fact that GTA 6 will next year make the company ridiculous amounts of cash, it stings even more.

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It also marks the continuation of a devastating industry trend that many (ourselves included) had hoped would tail off with the advent of the new year. However, between the Microsoft layoffs at the end of January, the PlayStation cuts at the end of February, and Take-Two’s latest shutterings, it doesn’t look like we’re out of the woods yet.

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