With GTA VI on the horizon, it is imaginable that its distributor, Take-Two, is very calm. If there is a game that is impossible to fail, unless something absolutely catastrophic happens, it is this one. The reality is that it seems that they have interests in making cuts, keeping their annual expenses to a minimum and ensuring maximum profits possible. Something that has affected, as always, the most vulnerable part of the company.
Take-Two has announced that it will cut 5% of its workforce by December 31st. This means that around 600 people will lose their jobs in order to save approximately 160 million annually, according to statements from the company. As a result of the cuts, an unannounced game that was in development has been canceled, showing the direct consequences of this situation.
This is particularly dramatic because just a few weeks ago, Take-Two made one of the biggest acquisitions of the year. It might even end up being the biggest. They acquired Gearbox, the company behind the Borderlands franchise, in a deal where they invested 460 million dollars. Around the same amount they are looking to save in three years by laying off 600 people.
No one escapes the evident relationship between both news. When this kind of purchases occur, massive layoffs usually follow shortly after. Something that coincides with the fact that Take Two’s CEO, Strauss Zelnick, stated earlier this year that there was no intention of making any kind of massive layoff. Even if the company’s intention was to make cuts to ensure its profits.
It is estimated that in 2023 alone, 9,000 people lost their jobs in the video game industry. Now we must add another 600, only from Take-Two, who will release GTA6 at some point in 2024 or 2025. This demonstrates that the video game industry has a serious problem on its hands.
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