The parent organisation of Rockstar Games and 2K Games, Take-Two Interactive have announced a Cost Reduction program in a way to eliminate $50million in annual spending.
The CEO of Take-Two interactive, Strauss Zelnick spoke with Gamesindustry before the latest conference call regarding disappointment of missing its own revenue forecasts.
Straus believes they can save $50 Million annually through infrastructure, processes, areas within corporate and publishing functions, along with staff layoffs. A rough number of staff layoffs was not given although he did confirm staff within game development wont be affected. Strauss also confirmed that the Summer intership program will be eliminated completely and cuts will happen within the travel and corporate management. The $50 Million planned saving is on top of the $100 Million cost synergies that was announced when they acquired video game developer Zynga.
βWeβre taking another hard look at our cost structure,β Chief Executive Officer Strauss Zelnick said in an interview. βI have to do better and I have to drive the things we can address that wonβt stand in the way of making great products that our consumers love, and thatβs our job every day.β
Strauss Zelnick and Take-Two Interactive made this announcement just hours before announcing that Grand Theft Auto V had now sold 175 Million along with Red Dead Redemption 2 also having sold 50 Million copies. The GTA Series has now sold 395 Million copies combined. So it doesn’t look like Take-Two are short of cash.
Source: Bloomberg and Gamesindustry
