The company that created the world-famous Grand Theft Auto series is scrapping some projects and laying off 5% of its team to restructure business costs.
If you were a kid in the 90s, you would remember the name Grand Theft Auto starkly. The entire GTA series has become one of the most-played titles in the world for over a decade. However, the maker of this revolutionary series of free-world gaming is now planning to fire 6% of its workforce. Take-Two Interactive has also trimmed down on game development budgets while deciding to scrap multiple game projects. This marks the latest layoff in a 2-year-long job cut trend in the gaming industry.
Take-Two said that the company will save nearly $140 million by scraping gaming projects. Severance and employee-related expenses will be cut down too, saving up to $35 million. The company is also planning to redue its office space in order to optimize infrastructure management in limited budgets.
This dramatic decision comes amid an ongoing decline in the gaming industry. The company is acting aggressively on its cost reduction plan, which will tentatively save charges up to $200 million. PC and console games have witnessed a sharp decline in revenue growth equivalent to pre-pandemic times, and will continue the trend through 2026. According to a research by Newzoo, gamers have reduced their paytime hours by a few hours on average.
The company has 11,583 employees working full time as of March 2023. Take-Two has also invested in a renowned game-maker company, acquiring its full rights. The tech giant has bought Borderlands maker, Gearbox, for $460 million in a discounted deal. The deal was signed at a time when other players are consolidating their game title publishings to drive up prices in international markets.
Take-Two has cleared the air around its Grand Theft Auto franchise development, saying that it is prioritizing the next release and is actively pushing upgrades in the existing versions. The trend of layoff has impacted the gaming industry drastically. Take-Two should take the falling PC and console user count in line with its next production. Users are rapidly switching to game apps that have emerged with smaller budgets while featuring top graphics and functionalities.
