A report from Bloomberg states that Star Theory Games has shut down after Take-Two Interactive took over development of Kerbal Space Program 2.

In December 2019, Star Theory Games employees received a message through LinkedIn from Michael Cook, executive producer for Private Division, which is the indie publishing branch of Take-Two Interactive. The message said that Kerbal Space Program 2 was no longer Star Theory’s game to make, and also that employees were welcome to work on the game if they became part of the newly appointed developer’s team.

“This was an incredibly difficult decision for us to make, but it became necessary when we felt business circumstances might compromise the development, execution and integrity of the game,” read the message from Cook. “To that end, we encourage you to apply for a position with us.”

When we heard that the game had been passed onto a new developer, it wasn’t clear what had happened to the employees of Star Theory Games. Apparently, a few members of the original team followed the game to the new studio—now known as Intercept—including lead Jeremy Ables, creative director Nate Simpson, and lead producer Nate Robinson. The remainder of the original team brainstormed prototypes to pitch to publishers at GDC 2020. 

Of course, GDC 2020 was cancelled due to the pandemic, and no other opportunities to build bridges with new partners presented themselves. As a result, Star Theory Games closed its doors with the remaining employees receiving one month’s pay and two months of health insurance. It is hoped that the people who used to work for Star Theory Games have since landed on their feet with new positions elsewhere.

Kerbal Space Program 2 will be released for PC, Xbox One, and PlayStation 4.