Ken Levine has decided to close Irrational Games in favor of a smaller, more focused development team of 15 built of his top people.
In a lengthy statement released by Levine on Irrational's official website, he has decided to "refocus my energy on a smaller team with a flatter structure and a more direct relationship with gamers" as opposed to the large teams building AAA games. Levine is said to be staying within the confines of Take-Two studios but on a smaller scale focusing on "narrative-driven games for the core gamer that are highly replayable".
Although almost the entirety of the studio is being laid off, the staff is being supported financially as best possible and the offices will remain open to employees for a period of time so ex-employees can build their portfolio. Take-Two is further assisting by speaking with said employees about other opportunities within the company and they will be scheduling a 3rd party recruiting day as well.
The prospect of Levine being able to focus strictly on narrative experiences is an exciting one as that is definitely his strongest attribute to the development process. Our thoughts go out to those who lost their jobs during this transition. Thankfully, having worked on the wonderful Bioshock Infinite, they should be find employment quickly.