The publisher of GTA 6 is going through a rough patch and despite its large licenses, it is not immune to the current economic situation. Sad news.
Take-Two Interactive, renowned publisher for flagship titles like Grand Theft Auto (currently for GTA 6), is going through a major restructuring phase. We know that we are in a difficult economic period. And the video game industry is not immune to bad news despite the success of many games. As always, it is the employees who suffer the consequences. Explanations.
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GTA 6 publisher makes a difficult choice
The company recently announced the elimination of 5% of its global workforce. And the cancellation of some of its video game projects. These drastic decisions are part of a strategy aimed at saving approximately $165 million annually. And to increase profit margins by seeking new efficient projects within its operations, as approved by its board of directors. 5% represents 600 employees as reported Reuters.
This announcement comes as Take-Two prepares for the launch of GTA 6 in 2025. A game that is expected to generate billions of dollars in revenue, like its predecessor, Grand Theft Auto 5, which had grossed $1 billion in just a few days after its release. But obviously that's not enough…
To date, Take-Two had 11,580 full-time employees worldwide as of March 2023. The costs associated with this restructuring are estimated between $160 and $200 million, including $120 to $140 million for cancellations of video game titles. The company hopes to complete these changes by the end of 2024, aligning its resources to maximize efficiency before launching its next major project.
This reorganization raises questions about the long-term impact of such measures. Both on innovation and job stability in the video game industry. A sector already known for its volatility and boom and bust cycles. The repercussions of these decisions will be closely scrutinized by both industry professionals and players. We do not yet know which titles of the games have been canceled or which studios exactly this upheaval may affect.
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