Grand Theft Auto publisher closes two game studios

Video game publisher Take-Two Interactive is planning to close two subsidiaries as part of a massive layoff of its divisions.

Here's What We Know

According to the message to the staff, the first team to be dismissed is the London-based Roll7 company, the developers of the Rollerdrome action game. The second company in line is Intercept Games, based in Seattle. It developed the space flight simulation game Kerbal Space Programme 2.

Last month, Take-Two said it would lay off 5% of its staff, or about 600 employees. Both closed offices were part of the Private Division, a division of Take-Two that was founded in 2017 to create small and medium-sized games.

Alan Lewis, Take-Two's vice president of communications, said the company was "not providing further details" on the layoffs announced in April and that it was "continuing to make updates to Kerbal Space Program 2".

Over the past year, the video game industry has faced massive layoffs, with companies such as Sony Electronic and Microsoft cutting jobs and closing subsidiaries.

Source: Bloomberg