Take-Two Interactive’s CEO has decided to deny the reports that Roll7 and Intercept Games have been shuttered. Read on to learn more about his claims and Take-Two’s earnings report that showcased GTA5’s impressive sales and the cancellation of some games.
Take-Two's Firm Denial and Ongoing Evaluation
Refuting The Closures of Roll7 And Intercept Games
Amid recent concerns over notice of closure given to the staff of Roll7, and the Worker Adjustment and Retraining Notification (WARN) notice of studio closures and mass layoffs within Take-Two’s Seattle office, the company's CEO, Strauss Zelnick, has come forward to address the issue. In a recent interview with IGN, Zelnick stated, "We didn't shutter those studios," referring to Roll7 and Intercept Games.
"We are always looking at our release schedule across all of our studios to make sure that it makes sense," Zelnick continued. "So we are being very judicious because we are in the middle of a cost reduction program that we've already concluded and are now fully rolling out."
He emphasized that while Take-Two is indeed implementing a cost reduction program, studio closures have not been a part of that strategy. The company had previously announced plans to save $165 million in existing and future costs, but Zelnick clarified that these savings were not achieved through studio shutdowns.
Contrary to his statement, the WARN notice received by the Employee Security Department in Washington on April 29 of this year indicated studio closure and the initiation of layoffs affecting 70 employees, set to commence on June 28. Specifically, the notice raised concerns about the fate of Take-Two's Seattle office, which is where Intercept Games is located.
When questioned about the accuracy of earlier statements suggesting the closure of certain studios, including the Seattle office, a PR manager for Take-Two offered elusive responses. Refraining from confirming or denying the existence of the studios in question, the PR manager reiterated the company's previous remarks regarding a broader cost reduction plan. Despite persistent queries seeking clarity on the specific studios mentioned in the WARN notice, the responses remained opaque.
On a different call that happened with the same writer at IGN, Zelnick admitted that they are on a path to reevaluate the company's strategies and recognizing the need for greater efficiency. He also revealed plans to reduce headcount by approximately 5%, citing the necessity of maintaining a lean and efficient business model.
The company's explanations only seem to contradict earlier reports, leaving more questions than answers. The elusiveness of their responses regarding the fate of specific studios contributes to a growing sense of uncertainty within the gaming community. As employees and industry observers await further developments, Take-Two's opaque approach to addressing these issues falls short of providing the clarity and transparency necessary for understanding its future direction.
Take-Two Cancels Several Games According To Its Fiscal Year Report
In its recent earnings report for fiscal year 2024, Take-Two Interactive unveiled a significant reduction in the number of planned games compared to previous announcements. The publisher now anticipates a total of 40 titles by the end of fiscal year 2027, a decrease of 12 games from its projection last February.
This shift in the release schedule comes amidst Take-Two's implementation of a cost-reduction program, as disclosed during its earnings call. Take-Two's President, Karl Slatoff, acknowledged that the company had canceled several titles as part of this initiative, aimed at focusing resources on franchises with the highest potential for critical and commercial success. Slatoff emphasized that the canceled projects did not include any core franchises and were not expected to significantly impact the company's future bookings growth.
Echoing Slatoff's remarks, CFO Lainie Goldstein highlighted the cost-reduction program's objective of delivering over $155 million in annual cost savings across the business. Goldstein clarified that the elimination of several projects was a strategic move intended to align with the company's financial benchmarks.
GTA5 Accounts For The Majority Of Sales For The GTA Franchise
In addition to the developments surrounding Take-Two Interactive's fiscal updates, the company also shared a significant milestone regarding its flagship title, Grand Theft Auto 5 (GTA5). According to Take-Two, the game has now sold approximately 200 million copies, solidifying its status as one of the best-selling video games of all time. Originally launched in 2013 for the PlayStation 3 and Xbox 360, GTA5 has since been re-released across multiple platforms, including PC, PlayStation 4, Xbox One, PlayStation 5, and Xbox Series S/X.
This latest sales figure marks a notable increase from previous reports, with the game having shipped 180 million units as of March 2023. GTA5's enduring popularity is evident in its consistent presence on best-seller lists over the past decade. While the game's single-player mode did not receive any DLC expansions, its online counterpart, GTA Online, has continued to receive a steady stream of content updates, contributing to its sustained success.
With 200 million sales under its belt, GTA5 remains the second best-selling game of all time, trailing only behind Minecraft, which boasts approximately 300 million copies sold across all formats. The GTA franchise as a whole has achieved remarkable success, nearing half a billion units in total sales, with Grand Theft Auto 5 accounting for nearly half of that figure. Despite the anticipation for GTA6, GTA5 continues to thrive.
Source:
IGN Interview
Take-Two Cancels Games That Aren’t Core Franchise - VGA Article
GTA5 Makes Up More Than Half Of The Franchise’s Sales - VGA Article
Take-Two’s Quarterly Earnings
