Just weeks following their acquisition of Gearbox Software from the Embracer Group for a hefty $460 million, Take-Two Interactive is already balancing their books by laying off 5% of their workforce.
According to a recent filing, Take-Two anticipates facing total charges ranging from $160 million to $200 million due to their restructuring program, with $120 million to $140 million attributed to the cancellation of titles.
Furthermore, Take-Two stated that around $25 million to $35 million will be linked to employee severance and related costs, with another approximately $15 million to $25 million tied to reductions in office space.
This move stems from Take-Two Interactive CEO Strauss Zelnick’s firm statement during a recent earnings call on February 8th, where he boldly declared that the company had no plans for staff layoffs. Yet, nearly three months later, the company is aiming to reduce its employee count of approximately 11,000.
Take-Two Interactive joins the growing list of gaming companies downsizing their workforce, with other notable examples being Sony and Microsoft. This reflects an industry on the decline due to severe bloat staffing and soaring production costs.
This trend is exacerbated by the struggles of BlackRock CEO Larry Fink’s ESG hedge fund empire, which is going up in smoke. As ESG financing becomes less accessible for game companies that significantly expanded their workforce during the COVID-19 pandemic and produce mediocre woke slop, they’re left with little option but to downsize their workforce before a mass exodus occurs.
In their fiscal report for 2023, released recently, Take-Two disclosed a workforce of 11,580 full-time employees as of March 31st of that year. With the projected 5% reduction, approximately 579 individuals are expected to lose their jobs in the upcoming months.
A relatively small number considering its scale, but I hardly imagine that the activists getting laid off will feel that way. As part of a cost-cutting strategy, the company will also discontinue several projects in development, potentially saving up to $200 million.
While Take-Two has not disclosed the canceled projects, I’d suggest that at least one of them will have been under development by Gearbox Software.
Considering how Gearbox was proclaimed to have no less than SIX games in development as they were acquired by Take-Two Interactive late last month, with five of those titles being sequels, it would be a wise decision from their new tyrannical overlords to trim Randy Pitchford’s bloatware, less he graces us with yet another New Tales From the Borderlands or perhaps Battleborn 2.
I of course wish nothing but the worst for Take-Two Interactive, as the company more or less operates as a legal firm rather than a games publisher / conglomerate, the company is infamously known for simply targeting mod creators for its games, specifically those made by Rockstar such as the Grand Theft Auto series, of which their upcoming release of GTA 6 is essentially being used as a crutch by Western AAA studios to be the resurgence of the video games industry as a whole.
I genuinely mean that by the way, Sony themselves declared that they have no plans of releasing any major first-part games throughout the year of 2024, with many other big name publishers / developers sharing similar sentiments.
GTA 6 is being positioned as being the largest video game release of all time, these companies are essentially banking on its success to boost their own sales, their objective until its release in 2025 is effectively to survive.
Despite the fact that from a narrative perspective, the next Grand Theft Auto installment is likely to be the most bland, uninspiring and woke yet. However, the essence of what normies desire in a GTA title remains consistent: themes of sex, drugs, violence, and most crucially, escapism.
What nobody wants in Grand Theft Auto is a masculine, strong Latina who bosses around her redneck boytoy as the games main focal point.
I harbor only ill will towards the company. Grand Theft Auto V became a global sensation, raking in billions for Take-Two Interactive since its release. However, key personnel at Rockstar Games have been departing rapidly over the past decade.
Despite its financial success, GTA V is widely regarded as the most regressive installment in terms of narrative and innovation. Its physics and fidelity represent a significant step back compared to Red Dead Redemption and GTA IV, there’s a legitimate reason for this.
ESG funds are going under, and video game budgets now rival those of Hollywood movies, despite often offering simplistic gameplay. The entire gaming industry is pinning its hopes on the release of Grand Theft Auto 6, which is bound to build upon the foundation and precedent set by Grand Theft Auto V.
The online component of GTA V thrives on microtransactions and regular drip-fed content updates, drawing in its massive player base. Some console gamers even pay for internet subscriptions solely to access Rockstar’s GTA+ service.
However, despite these financial strategies, there’s a pervasive sense of pessimism regarding the future, with many predicting that Grand Theft Auto 6 will turn out to be a monumental flop.
The decrease in the quality of GTA V can be traced back to the lofty expectations established by its predecessor, GTA IV, which was anticipated to exceed the success of San Andreas. Notably, GTA: San Andreas sold 4.5 million units within its first week and reached 12 million in sales by March 2005, just five months after its release.
Flashback to 2004, when the gaming industry was not nearly as expansive as it is today. Contrast this with GTA IV, which boasted a significantly larger budget, included post-launch episodic DLC additions, and launched during the onset of the next console generation.
In comparison, GTA IV took a full year to match the sales figures of San Andreas. Take-Two even acknowledged the “disappointing” sales performance of its DLC packs, despite high expectations, GTA IV’s Episodes from Liberty City bundle, featuring both DLC additions, The Ballad of Gay Tony and The Lost and Damned, fell short of projections. It only achieved 160,000 sales within one month, failing to meet analysts’ targets.
The perceived failure of GTA IV led to a dramatic change in direction for the franchise with GTA V. Management interpreted the response as a signal that consumers were not interested in a gritty, realistic Grand Theft Auto experience with a compelling story narrative.
As a result, GTA V took a different approach, toning down its realism elements and deviating to a more casual experience and the rest is history. GTA V has achieved remarkable success, selling over 195 million copies to date. It’s widely regarded as the most popular and beloved installment in the franchise, although that from a fundamental standpoint, it’s the least impressive.
Given the unparalleled success of GTA V, it’s evident that Rockstar has relied heavily on its blueprint for the next installment. However, as previously mentioned, GTA 6 will lean towards a more woke and inclusive narrative direction, featuring a strong female Latina protagonist.
Despite being the most anticipated game of all time, it seems improbable that GTA 6 could surpass the achievements of GTA V.
At present, game companies are prioritizing the reduction of excess staff. The potential “failure” of GTA 6 could have devastating effects on the entire industry, as many companies are relying heavily on its anticipated success to drive sales and sustain their operations. The fate of these companies largely depends on the performance of this single game, and any delays are fervently hoped to be avoided at all costs.
These layoffs will continue to happen throughout the year, but I for one am certainly hoping that the bubble finally begins to burst in 2025.
