Kerbal Space Program 2 Developer Intercept Games Has Reportedly Been Shut Down

Take-Two Interactive has initiated a 5% staff reduction, which includes the closure of Intercept Games, the developers behind Kerbal Space Program 2. The layoffs and potential studio shutdown reflect ongoing cost-cutting measures at the company. Recent social media updates from former Intercept Games employees, including posts from associate producer Grace Tuohey-Kay and community manager Dakota Callahan, indicate they are seeking new opportunities, hinting at the studio’s dire status. 

While there hasn't been an official announcement from Intercept Games or its publisher, Private Division, a notice under the Washington State WARN Act points to the termination of 70 jobs at a Seattle-based studio. Intercept Games is the only studio within Take-Two's labels located in Seattle, aligning with this notification. 

Established in 2020, Intercept Games was specifically formed to continue the development of Kerbal Space Program 2, taking over from Star Theory Games, the initial developers of the series. This shift in development followed a situation where many of Star Theory’s staff were hired by Take-Two, leading to Star Theory's closure. Despite these tumultuous beginnings, Kerbal Space Program 2 was launched in early access on PC in February last year but has received a lukewarm response from gamers, holding a 'Mixed' rating based on user reviews on Steam.

The future of the Kerbal Space Program, 2 post-Intercept Games closure, is uncertain. Further updates from Take-Two Interactive are awaited to clarify the situation.