Reports indicate that Take-Two Interactive is considering either the closure or sale of Private Division

Take-Two Interactive is considering either shuttering or divesting its indie-focused imprint, Private Division.

According to an IGN article, sources suggest that nearly all employees at Private Division have been dismissed. Take-Two has chosen not to comment on these developments.

In April, management allegedly informed staff that Take-Two would cease support for the publishing label, retaining only a minimal crew to manage ongoing contracts. These projects include Moon Studios' No Rest for the Wicked, Wētā Workshop's Tales of the Shire, and an undisclosed game by Game Freak.

Two other publishing contracts have reportedly been terminated. Last week, Bloober Team disclosed that its agreement with Private Division for an unnamed survival horror game was voided. Additionally, IGN reports that a deal with One More Level, the creators of Ghostrunner, was also dissolved.

There are ongoing talks with prospective buyers for Private Division, including a private equity entity that has expressed interest.

Additionally, Take-Two is rumored to be exploring the sale of the Kerbal Space Program IP, possibly bundling it with Kerbal Space Program 2 developer Intercept Games.

Reports suggest a downsizing of Private Division operations, including the closure of its subsidiaries, Roll7 and Intercept Games. Although Take-Two CEO Strauss Zelnick later stated that neither studio has been officially closed, WARN notices imply Intercept Games will shut down this month. Employees have also reported extensive layoffs.

These shifts occur as Take-Two implements its third round of cost-cutting measures within a year, which includes laying off 5% of its workforce.