Intercept Games hit by Take-Two Interactive layoffs

Intercept Games, the developer behind Kerbal Space Program 2, has fallen victim to Take-Two Interactive's recent layoffs. The parent company announced the layoff of 70 employees in Seattle, where Intercept Games is based. The closure was revealed through a Worker Adjustment and Retraining Notification (WARN) notice filed in Washington state. While Take-Two Interactive did not explicitly confirm Intercept Games' closure, it was implied that the studio would be affected.

Despite attempts to reach Intercept Games for comment, the studio remained silent. Take-Two Interactive, on the other hand, stated that its subsidiary, Private Division, would continue to support Kerbal Space Program 2 post-launch. Bloomberg's Jason Schreier confirmed the closure of Intercept Games and Roll7, the studio responsible for OlliOlli World.

Take-Two Interactive's decision to lay off 5% of its workforce, amounting to 579 employees, came as a surprise after previous assurances that no layoffs were planned. The company cited a cost reduction plan as the reason behind the layoffs, which also led to the cancellation of several projects. Kerbal Space Program 2, released in early access over a year ago, received mixed reviews due to performance issues and bugs.

The gaming industry has witnessed a wave of layoffs, with major players like EA, PlayStation, and Xbox also affected. The closure of Intercept Games adds to the growing list of casualties in the industry, highlighting the challenges faced by developers in an ever-evolving market.