Is Kerbal Space Program 2 being canceled after developer layoffs?

Kerbal Space Program 2 may be in trouble of being canceled after Take-Two Interactive laid off much of the studio that made the game. Should fans start panicking, though?

2024 continues to be a brutal year for those who work in the video game industry. From Embracer to Microsoft, video game industry professionals continue to lose their jobs in the wake of “cost-reduction” initiatives. These layoffs have come one after another, impacting independent developers and major tech conglomerates’ subsidiaries.

Unfortunately, the trend has shown no signs of stopping. Fans discovered that publisher Take-Two Interactive will lay off 70 employees at Intercept Games, the studio behind Kerbal Space Program 2. With the sudden news, many fans worry about the already-troubled sequel’s future release.

Is Kerbal Space Program 2 going to be canceled?

Take-Two Interactive says that Kerbal Space Program 2 will continue to receive support despite many of its creators being laid off.

Multiple developers of Kerbal Space Program 2 left the studio, with some outright stating they were “laid off.” Intercept Games still has multiple job listings on its official website, though whether these will remain open in the coming weeks remains a mystery. Despite this, Take-Two stated that Private Division will maintain the game in a statement obtained by Game Developer.

Kerbal Space Program 2 has always been a troubled game, even before the threat of being canceled. Since its initial announcement at Gamescom 2019, the game has gone through several development teams. The first studio, Star Theory, filed for bankruptcy in March 2020.

The game’s release date was pushed back repeatedly following this. After three years of delays, Kerbal Space Program 2 finally launched for Early Access in February 2023. Fans heavily criticized Kerbal Space Program 2, citing bugs, technical performance issues, and a lack of valuable content as major flaws. 

In December 2023, Intercept Games released the “For Science” update that fixed many of those issues people had with the sequel. Although the game finally seemed on track, the recent layoffs may spell the end for the once-highly anticipated sequel.