In apparent contradiction to previous assurances made by its CEO, Take-Two Interactive Software Inc. has purportedly commenced the shutdown of two game development studios, aiming to achieve a five per cent reduction in its workforce.
As per reports from Bloomberg, the affected studios, operating under Take-Two’s indie label, Private Division, include Roll7 and Intercept Games. Roll7, renowned for titles like “OlliOlli” and “Rollerdrome,” clinched the coveted BAFTA for Best British Game in 2023, further solidifying its status within the gaming sphere. Similarly, “OlliOlli World,” another Roll7 creation, received nominations in the same year.
Take-Two, in a statement furnished to Game Developer, acknowledged these closures as part of a wider cost-cutting initiative aimed at bolstering the company’s profit margin. It stated, “As part of these efforts, the Company is rationalising its pipeline and eliminating several projects in development and streamlining its organisational structure, which will reduce headcount and future hiring needs.” However, Take-Two refrained from divulging specific details regarding the affected studios.
While declining to comment directly on the closure of Roll7 in London or Intercept in Seattle, internal documents cited by Bloomberg indicate that these studios have indeed been affected. Allegedly, Roll7 staff received a notice regarding the closure, and Take-Two issued a WARN notice on April 29, indicating the permanent layoff of 70 Seattle-based employees.
This development follows shortly after Take-Two’s filing with the Securities and Exchange Commission (SEC) in April, confirming the cancellation of several projects and an anticipated reduction of around 600 jobs, constituting approximately five per cent of its workforce. Notably, this announcement comes less than a month after CEO Strauss Zelnik’s assertion that there were no immediate plans for layoffs within the company.
It’s noteworthy that Take-Two Interactive Software Inc. holds ownership of Rockstar Games, the studio behind the immensely profitable “Grand Theft Auto 5,” which stands as the most lucrative piece of media ever created.
In a parallel move, Square Enix has also declared the cancellation of projects as part of its efforts to “streamline” its production output.
The ramifications of these closures extend beyond the affected studios, prompting inquiries into the volatility of the gaming industry and the challenges faced by developers in maintaining stability amidst evolving market conditions. As stakeholders monitor developments closely, the industry braces for potential implications on both established and emerging entities within the gaming landscape.
