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Kerbal Space Program 2 studio reportedly shut down by Take-Two

UPDATE: Olli Olli and Rollerdrome studio Roll7 also reportedly closed.

Three green Kerbals in space suits in Kerbal Space Program 2
Image credit: Intercept Games

UPDATE 11.30pm: Following reports Kerbal Space Program 2 studio Intercept Games has been shut down as part of previously announced mass layoffs by parent company Take-Two, a fresh report has claimed renowned UK developer Roll7 - known for the acclaimed likes of OlliOlli World and Rollerdrome - has been closed down too.

As reported by Bloomberg's Jason Schreier, based on a note to Take-Two staff reviewed by the publication, Roll7 is the second of two subsidiaries closing as part of Take-Two's layoffs - the first being Intercept Games. Severance agreements will reportedly be offered to Roll7 employees.

Roll7 was purchased by Private Division, Take-Two's indie publishing label, in 2021. The studio released two well-received titles - OlliOlli World and Rollerdrome - the following year.

Rollderdrome launched in 2022 to significant acclaim.Watch on YouTube

ORIGINAL STORY 3.24pm: Take-Two looks to be shutting Intercept Games, the studio behind Kerbal Space Program 2, as part of its recent layoff announcement.

A closure notice affecting 70 workers in Seattle has been published by Take-Two. This is where Intercept Games, which Take-Two is the parent company of, is located.

In addition, several posts from Intercept employees have started making the rounds on social media and LinkedIn, stating they have been laid off or are now looking for work. Meanwhile, links for job openings on Intercept Games' site appear to be broken.

Newscast: Why are there so many video game industry layoffs?Watch on YouTube

In a statement shared with Eurogamer's sister site GamesIndustry.biz, Take-Two spokesperson Alan Lewis said the following in response to the apparent closure:

"On 16th April, 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 rationalising its pipeline and eliminating several projects in development and streamlining its organisational structure, which will eliminate headcount and reduce future hiring needs."

"The company is not providing additional details on this program."

Take-Two announced last month it would lay off five percent of its 11,000-strong workforce - equating to around 550 people - and cancel multiple in-development projects.

Following today's speculation, a company spokesperson confirmed to Game Developer that its Private Division publishing label will continue to support Kerbal Space Program 2. On Thursday, Kerbal Space Program 2's creative director Nate Simpson shared a development blog post, stating the team was still working on its previously promised Colonies update.

"Thanks as always for sticking with us as we work through each challenge – we couldn't be more grateful to have your support as we move toward the Colonies era," Simpson wrote just last week. Eurogamer has reached out for further comment.

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