Take-Two has sold Private Division to an undisclosed buyer

Key insights

Take-Two sells Private Division, new owner unknown, possibly to avoid layoffs.
Layoffs and studio closures are impacting the gaming industry, even affecting dominant companies like Take-Two.

Take-Two Interactive was sold Private departmentalthough the company's new owner is currently unknown to the public. In recent years, major studios in the gaming industry have often resorted to downsizing to streamline work on projects and save money. Take-Two, an industry leader known to many as the owner of Rockstar Games and Zynga, among others, has also faced some problems. By selling Private Division to an owner who may be better able to easily support its team, the company might have avoided another round of layoffs.

It's been a turbulent time for the gaming industry due to rampant layoffs and studio closures, which even affected gaming giant Take-Two Interactive. The publishing house was closed Rollerdome Developer Roll7 together with Intercept Games, developer of Kerbal Space Program 2. Although Take-Two's dominance of the gaming market is largely due to the fact that it is associated with so many successful titles, it appears that the costs may outweigh the benefits in some areas.

Grand Theft Auto 6 still releasing Fall 2025 development update

Grand Theft Auto 6 receives encouraging development update

Grand Theft Auto 6 is receiving an encouraging development update that brings great news for gamers looking forward to Rockstar's upcoming release.

GTA 6 Publisher Take-Two Interactive has sold its indie company Private Division. Take-Two shared this information as part of its second quarter fiscal 2025 earnings results, with its CEO Strauss Zelnick telling Variety Magazine that the deal included the purchase of substantially all of Private Division's projects, including the unreleased ones. Early Access title No rest for the wicked will continue to receive support from Take-Two in the meantime. This is a big change for both companies, but one that some people may have been expecting for some time.

What does the future of the private department look like?

In May 2024, IGN reporter Rebekah Valentine posited that Take-Two Private Division was “quietly killing” amid its parent company's mass layoffs and cost-cutting efforts. Take-Two had reportedly been considering selling Private Division this month rather than shutting it down completely. Private Division, responsible for publishing games like The Outer Worlds, HadesAnd Tales of the Shire: A Lord of the Rings gamehas built a following after consistently releasing indie hits. However, as Take-Two focused on cost cutting and restructuring, fans were concerned about its reputation.

Placing the Private Division under new management could be an advantage for the company, as there appears to be no longer any risk of closure. Because Private Division retains ownership of the titles that may have caught players' attention in the first place, the company's brand remains intact while players look forward to the next release. The next big project for Private Division appears to be its upcoming collaboration with Pokémon Developer Game Freak, known as Project Bloom. Although the Private Division has not yet closed, its employees can count on it Project BloomTake-Two's success contributes to the fact that the company may now no longer be affiliated with a company that has the same resources as Take-Two.