Reports indicate that Take-Two Interactive has shut down Intercept Games, the studio behind Kerbal Space Program 2. The signs of closure are growing, and other outlets have reported the same news. We will say it’s reportedly happening because there’s no official confirmation, but all signs point to this being true.
A clear sign of the shutdown is a notice of closure filed in Seattle, Washington, where Intercept Games is located (Thanks, GamesIndustry.biz). The notice reveals plans to lay off 70 workers. Former Intercept Games employees have gone on social media platforms like LinkedIn to confirm their job losses or share that they are now looking for new jobs. Additionally, if you click on a job link on Intercept games, you’ll get stuck on an infinite loading screen.
Take-Two spokesperson Alan Lewis confirmed that the company is implementing a “cost reduction program” to make its operations more efficient and cancel some projects. This indicates that the closing of Intercept Games is part of a bigger effort by Take-Two to restructure. The company had previously stated that it planned to reduce its workforce by around 5%, affecting approximately 550 employees.

“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 rationalizing its pipeline and eliminating several projects in development and streamlining its organizational structure, which will eliminate headcount and reduce future hiring needs.”
Take-Two Spokesperson
Despite Intercept Games’ reported shutdown, Take-Two has confirmed that its Private Division branch will keep backing the production of Kerbal Space Program 2. The game’s creative director, Nate Simpson, also expressed this dedication, recently sharing a development update on the game’s upcoming Colonies feature.
The closure of Intercept Games has raised concerns for fans waiting for Kerbal Space Program 2. The game has already had a complicated development, including a change from its old developer, Star Theory Games. It’s still unclear who will take over the project after Intercept Games and how this change might affect the final product. However, Take-Two’s commitment to the game provides some reassurance that it won’t be abandoned.
As the situation develops, the gaming community is waiting for more official updates from Take-Two and its Private Division to understand what’s next for Kerbal Space Program 2.
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