Take-Two plans to abandon the development of several of its games to save costs, according to Bloomberg

Take-Two Entertainment

Take-Two Entertainment – TAKE TWO (T2)

April 17 (Portaltic/EP) –

Take-Two Interactive (T2) has announced that it plans to abandon the development of several video games, a decision it has made as part of a cost-savings campaign that will also result in the layoff of 5 percent of its staff.

The video game developer and distributor, which brings together under its label the Rockstar Games, 2K and Zynga studios, responsible for titles such as Grand Theft Auto, Civilization and FarmVille, hopes to abandon several projects as part of a cost-saving strategy.

At the moment, the titles affected by this measure have not been disclosed., but his intention has done so fire 5 percent of its workforce, which until now was made up of 11,580 workers, according to internal documents to which it has had access Bloomberg.

It is also unknown if these plans will affect the launch of Grand Theft Auto VI (GTA VI), which Rockstar Games officially announced at the end of last year with the intention that it will arrive on PlayStation and Xbox in 2025.

With this procedure, the firm expects to save up to 200 million dollars (188 million euros). From them, 140 million dollars (about 132 million euros) will correspond to canceled projects and 35 million dollars (about 33 million euros) to expenses related to its staff.

This comes days after the developer's CEO, Strauss Zelnick, commented in his third-quarter 2023 earnings report that he was working on “a major cost reduction program” to maximize your profit margins.

This is how he picks it up IGNto which the CEO of the firm confirmed that its largest item of expenses was for marketing and that it had “no plans” to include layoffs in the restructuring of its business strategy.

The American distributor will thus follow other video game companies such as Unity Software, Riot Games and the 'gaming' division of Microsoft, which are just some of the representatives of the sector that have suffered massive layoffs this year, as recalled. Bloomberg.

Source link