Recent Updates From Take-Two Interactive
Take-Two has been in the news recently following confirmation of staff layoffs and game cancellations. Thankfully, this shouldn't affect Rockstar Games or GTA VI.
On April 16th, news broke that Take-Two Interactive - the parent company of Rockstar Games - plans to fire 5% of its workforce to cut down on costs. A number of projects currently in development by their studios will also be cancelled. This comes despite CEO Strauss Zelnick stating there were "no current plans" for layoffs in an interview with IGN just last month.
"We haven't put any meat on the bones of that yet. I would just note that our biggest line item of expense is actually marketing. We do think we can optimize that. We also have third-party expenses, software, other vendors, supply services. And we always find opportunity there. The hardest thing to do is to lay off colleagues, and we have no current plans."
Grand Theft Auto VI and the developers at Rockstar Games appear to be safe from these cuts, however, which isn't at all surprising given the new Grand Theft Auto game is widely expected to be one of the highest-grossing media products of all time and will undoubtebly earn the company billions of dollars, both at launch and in the years that follow.
Take-Two employed over 11,500 staff members as of last year, meaning over 500 employees are expected to lose their jobs, continuing a trend of layoffs across the gaming industry. Take Two anticipate their cancelled games will incur costs of up to $140 million.
It takes millions of man-hours over years of development to make the type of games Take-Two are known for, and until they launch, the developer is essentially making no money while their staff still need to be paid. It seems the risk is getting too big for many executives in the industry and cost-cutting measures are being put in place to prevent studios from going out of business altogether, but it's incredibly sad for the devs who have dedicated years of their lives to a project that may never see the light of day.
Rockstar Games Staff Back In The Office
This news shouldn't have any affect on the development of Grand Theft Auto VI, with Rockstar Games' staff back in the office 5-days a week as of Monday gone. As we reported back in February, remote working capabilities were being withdrawn on April 15th to improve security and productivity, although many of their staff were unhappy with the short turn-around time and broken promises of flexible and remote working conditions. This change has meant that some of those staff members who weren't able to return to the office, perhaps those who live further away or can't travel to the office, have left their positions with Rockstar Games.
Take Two Q4 Earnings Report
Finally, Take Two are set to report their earnings for Q4 2024 in their next investor call on May 16th 2024. It's unlikely we'll hear anything new about GTA VI in this but we may be able to make some assumptions about a possible release date if any earnings forecasts are made. Based on their latest forecast, a release later in 2025 appears more likely.
Stay tuned for further updates from us soon when we look at when we can start to expect the first official screenshots and a second trailer for Grand Theft Auto VI.