The publisher behind the long-awaited GTA VI continues a trend in the gaming industry by laying off some of its staff and deleting games…

Take-Two Interactive, the publisher behind the Grand Theft Auto series, including the upcoming GTA VI, is cutting staff and canceling projects. It’s just the latest in a string of layoffs and reorganizations in the gaming industry in recent years.

Take-Two Interactive owns several huge franchises, including 2K Sports, Red Dead Redemption, GTA, BioShock and, in a recent move, Borderlands.

With such wildly popular games and franchises in its portfolio, fans might think the company is safe, and there’s no need to lay off employees. However, this does not seem to be the case.

As reported by Reuters, Take-Two Interactive announced that the company will cut about 600 employees, or 5% of its workforce. The company is also selling some of its office space. He also cancels the publication of several projects under development. Take-Two believes the move will save the company $165 million a year. This is how they try to offset the slowing growth of PC and console game revenues. Unfortunately, the company did not reveal which games were deleted.

This move may come as a surprise to some. Take-Two Interactive is closing in on a deal to buy Gearbox Entertainment for $460 million. The publisher is also approaching the release of the long-awaited Grand Theft Auto VI. This will most likely bring huge sales and profits to the company. (Even before possible microtransactions appeared.) However, the announcement of the acquisition of Gearbox Entertainment was immediately followed by layoffs at the developer. This may also show the direction in which the publisher will move.

Why is GTA VI publisher Take-Two Interactive cutting jobs?

Take-Two Interactive is following the current trend in the gaming industry to cut costs and increase profits by making layoffs. One of the alleged reasons for the mass layoffs is that toy companies took on more employees during the pandemic as game traffic increased due to people staying at home. However, now that most employees are back in the office and have less time to play, there are reportedly too many gaming industry employees.

Combined with falling sales expectations, many developers and game publishers are cutting workforces to compensate.

Take-Two Interactive is far from alone in this move. After all, huge game companies such as Sony and Microsoft, as well as many individual developers, have made significant downsizing in their teams. However, not everyone agrees with the alleged reason. Larian Studios’ Baldur’s Gate 3 director claimed that these cuts were primarily due to greed in the gaming industry. Whatever the reason, it’s unfortunate for the developers who work so hard to bring games to life.

Source: Reuters