Benzinga - by Anusuya Lahiri, Benzinga Editor.
Take-Two Interactive Software Inc (NASDAQ:TTWO), the maker of the Grand Theft Auto franchise, plans to close two subsidiaries, Roll7 and Intercept Games, as part of mass layoffs.
Roll7, based in London, known for Rollerdrome, and Intercept Games, in Seattle, known for Kerbal Space Program 2, will be shut down, affecting around 70 jobs, Bloomberg reports.
Last month, Take-Two announced a 5% staff reduction, which will affect roughly 600 employees, including those from the Private Division, founded in 2017.
Alan Lewis, Take-Two’s VP for communications, stated no additional details on the layoffs but confirmed ongoing updates to Kerbal Space Program 2.
The gaming industry has seen widespread layoffs recently, with major players like Sony (NYSE:SONY), EA (NASDAQ:EA), and Microsoft Corp (NASDAQ:MSFT) also reducing staff and closing subsidiaries.
Microsoft fired 1,900 employees across Activision Blizzard and Xbox in January, equivalent to 8% of its Gaming division.
In December, Tencent Holding Ltd (OTC:TCEHY) shut down US game studio Team Kaiju, shifting its focus to the Western market. In November, TikTok parent ByteDance Ltd, shared plans to shut down its principal brand, Nuverse, marking its retreat from the gaming industry.
Meanwhile, Walt Disney Co (NYSE:DIS) and Netflix Inc (NASDAQ:NFLX) renewed their focus on the gaming industry.
In February, Disney announced a $1.5 billion investment in Fortnite game owner Epic Games.
Netflix’s gaming library grew to 86 titles in 2023. The streaming giant looks to double it by adding 90 more titles in 2024.
Take-Two Interactive Software stock gained over 17% in the last 12 months. Investors can gain exposure to the stock via Roundhill Video Games ETF (NASDAQ:NERD) and Global X Video Games & Esports ETF (NASDAQ:HERO).
Price Action: TTWO shares closed lower by 0.05% at $142.74 on Wednesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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