The video game industry is still suffering mass layoffs at the hands of major publishers and developers, and even creators of indie favorites are not safe. Reports say that the GTA V publisher, Take-Two Interactive, is shutting down two studios behind beloved games.
Take-Two Interactive Shuts Down Studios
You probably heard of Rollerdome, the third-person action shooter with 80s pop art graphics. It won awards such as BAFTA and DICE. It was even one of the three free monthly games in the PS Plus membership in February.
The developer behind the game, Roll7, is one of the studios that is reportedly being shut down by Take-Two Interactive. The studio based in London was acquired by the parent company back in 2021, as reported by Engadget.
The other would be Intercept Games, a Seattle-based developer behind the popular flight simulation game called Kerbal Space Program 2. The studio was founded by the parent company specifically to manage the mentioned game, even issuing updates up until early 2023.
While the video game giant has yet to announce the mass layoffs officially, there are already indications of it being true. For one, it has already filed a notice in Washington with plans to lay off 70 employees in the state, as well as close the places of business for good.
Several workers under Intercept Games have also confirmed that they have left the company. Fans of Kerbal Space Program 2 might be happy to know that the game will continue to get updates, but it will now be under Private Division, which is also owned by Take-Two Interactive.
It's unclear why the video game giant is conducting mass layoffs, considering the success it had in the past year, as well as the anticipated release of its upcoming game, Grand Theft Auto VI, which is already expected to reel in billions once it's released.
Other than layoffs and the shutdown of smaller studios, Take-Two Interactive has also canceled a couple of in-development projects. Even the studio that will take over for Kerbal Space Program 2 has seen layoffs back in 2023.
Take-Two Interactive's Current and Future Success
As mentioned before, the parent company has been doing well for itself. In 2023, it managed to rake in $5.3 billion in revenue, which means that the layoffs are likely not due to financial troubles. It could just be Take-Two cleaning house to make room for other projects or acquisitions.
Just recently, the company bought Gearbox, which is the studio behind the popular franchise Borderlands, costing it $460 million. Even if Take-Two is having trouble with revenue, which doesn't appear to be the case, it will easily bounce back in 2025.
Grand Theft Auto VI, which is slated to be released in 2025, is arguably the most anticipated video game for next year. Its trailer gained 93 million views in just 24 hours, as per YouTube, setting the record for a non-music video 24-hour debut.
Even before it was released, people were at the edge of their seats waiting for the release. It's no surprise, seeing as the GTA franchise is among the most popular in the video game industry, with over 150,000 people still playing it after a decade.
