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Take-Two Interactive to Lay Off 5% of Workforce and Cancel Projects
Take-Two Interactive, the publisher behind "Grand Theft Auto," is laying off 5% of its workforce, about 600 employees, and canceling several projects as part of a cost-cutting initiative. The company filed paperwork with the SEC, stating that the downsizing will be largely complete by the end of 2024. These cuts come amid a wave of layoffs in the gaming industry, and Take-Two estimates between $160-$200 million in charges as a result of its cost-cutting plan.
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"Take-Two Interactive Announces Layoffs and Project Cancellations"
Eurogamer.net•1 year ago
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Take-Two Interactive to Lay Off 5% of Workforce and Cancel Projects
Originally Published 1 year ago — by PC Gamer
Grand Theft Auto publisher Take-Two Interactive is implementing a cost reduction program that includes canceling several games in development and laying off approximately 5% of its workforce, which could amount to nearly 600 employees. This move comes as the company aims to enhance its margin profile while still investing for growth. The layoffs and cancellations are part of a broader trend in the gaming industry, with over 16,000 layoffs reported since the start of 2023. Despite reporting significant net bookings, Take-Two's next financial report in May may provide more insight into the extent of the cuts.
"End of an Era: Possibility Space Shuts Down"
Originally Published 1 year ago — by GamesIndustry.biz
Prytania Media's Possibility Space studio has shut down, following the closure of its Crop Circle Games studio. Former employees confirmed the news, with layoffs reported weeks after Crop Circle's formal shutdown. The status of Prytania's remaining studios, Dawon Entertainment and Fang & Claw, is currently unknown. The company's founders, Annie Delisi Strain and Jeff Strain, are best known for co-founding Undead Labs and ArenaNet.
"Ubisoft Cuts 45 Jobs in Latest Layoff Wave"
Originally Published 1 year ago — by GameSpot
Ubisoft has laid off 45 workers as part of its efforts to reorganize its Global Publishing central and Asia-Pacific structures in order to enhance efficiency. This is the latest in a series of mass layoffs across the gaming industry, with over 8,000 workers laid off in 2024 so far. The company expressed gratitude for the contributions of the impacted colleagues and stated that it is providing comprehensive support for them. Despite the layoffs, Ubisoft has released games like Prince of Persia: The Lost Crown and Skull and Bones this year, with more titles like Star Wars Outlaws and an Assassin's Creed game codenamed Red still on track for this fiscal year. More information on Ubisoft's lineup for the fiscal year of 2024-2025 is expected in May.
"Sony's Hiroki Totoki Takes Over as Interim PlayStation CEO, Marking the End of Jim Ryan's Era"
Originally Published 1 year ago — by Video Games Chronicle
Sony president Hiroki Totoki officially begins his role as interim CEO of PlayStation, taking over from former CEO Jim Ryan. Totoki aims to improve Sony's gaming division's profit margins by focusing on bringing first-party games to PC and making the division more multi-platform. He has already started visiting studios and has expressed a desire to be aggressive in improving margin performance. Additionally, Totoki has suggested that Bungie could be better at assuming responsibility for its development timelines and hopes to work with them to find solutions.
"Take-Two Acquires Gearbox Entertainment from Embracer Group for $460 Million"
Originally Published 1 year ago — by Push Square
Shortly after the acquisition of Gearbox Entertainment by Take-Two Interactive, layoffs have begun at the studio, leaving former employees blindsided and sharing their experiences on social media. The exact number of staff affected is unclear, but the impact seems significant. Embracer Group sold Gearbox for $460 million, marking a substantial loss compared to the $1.3 billion it paid for the studio in 2021, highlighting the volatile nature of the video game industry.
"CD Projekt's Record-Breaking Profits: A Look at 2023's Financial Success"
Originally Published 1 year ago — by IGN
CD Projekt reported over $120 million in net profits for 2023, the second best year in its history, attributing the success to the release of Phantom Liberty and ongoing interest in The Witcher. Despite this, the company underwent layoffs in summer 2023, leading to the creation of the Polish Gamedev Workers Union. Looking ahead, CD Projekt is focusing on developing The Witcher 4: Polaris, the next Cyberpunk game codenamed Orion, and a live-action project set in the Cyberpunk universe.
CD PROJEKT's Strong 2023 Financial Performance: A Year in Review
Originally Published 1 year ago — by CD PROJEKT
CD PROJEKT reported strong financial results for 2023, with solid revenues and net profit driven by the success of Cyberpunk 2077 and the Phantom Liberty expansion. The company continues dynamic development, with a new dev team in Boston working on a new game set in the Cyberpunk universe. They also recommended allocating nearly 100 million PLN toward a dividend, reflecting the second best year in the entire history of the CD PROJEKT Group. The financial reserves of the Group grew to over 1.3 billion PLN, enabling them to focus on development work, including the new Witcher trilogy.
"Take-Two's Acquisition of Gearbox Leads to Layoffs Following Embracer Split"
Originally Published 1 year ago — by Game Developer
Gearbox Software is laying off staff shortly after announcing its split from Embracer to join Take-Two, with senior user research investigator Jewels Verne and PR manager Jennifer Locke among those affected. The $460 million deal will see Gearbox taking its key franchises to Take-Two, while its publishing arm and certain publishing rights will remain with Embracer. Gearbox CEO Randy Pitchford has expressed optimism about the move, calling it the "best possible scenario" for the studio.
Sega Europe Sells Relic Entertainment and Axes 240 Jobs
Originally Published 1 year ago — by Polygon
Sega Europe is selling off Relic Entertainment, the developer of Company of Heroes 3 and Age of Empires 4, while laying off 240 workers across several studios. The layoffs are attributed to optimizing fixed expenses and a decline in profitability due to the economic downturn and shifts in the gaming industry. Relic Entertainment will operate independently with the support of an external investor, and Sega Europe expects to incur around $10 million in losses from the business restructuring. Meanwhile, Sega of America workers have ratified their first collective bargaining agreement, securing base raises, layoff protections, improved crediting for game developers, and just cause protections.
"Embracer Sells Gearbox, Including Borderlands, to Take-Two for $460M"
Originally Published 1 year ago — by Game Developer
Embracer Group has sold Gearbox Software and its major franchises like Borderlands to Take-Two Interactive for $460 million, as part of Embracer's strategy to reduce net debt and become more focused. Gearbox CEO Randy Pitchford believes the deal is in the best interest of all stakeholders, while Take-Two sees it as an opportunity to expand its internal development team with proven talent and iconic intellectual property. This marks the second significant divestment by Embracer in recent weeks, following the sale of Saber Interactive assets.