Take-Two CEO Says GTA 6 Leaks Didn't Impact Business, But Were 'an Emotional Matter'
It's been a tricky quarter for Grand Theft Auto publisher Take-Two Interactive - its earnings today fell short of its guidance, the company's planning for cost reductions that may include "modest" layoffs in the workforce, and its biggest potential blockbuster on deck, Grand Theft Auto 6, suffered a massive leak last quarter.
On the final point, at least, CEO Strauss Zelnick isn't concerned that the leaks might impact the business. But speaking to IGN ahead of Take-Two's earnings release today, he called them an "emotional matter" and focused on the impact to developers working on the game.
"We take leaks very seriously indeed and they disappoint all of us, it's really frustrating and upsetting to the team," he said. "However as a business matter we're not affected. But as a personal matter and an emotional matter, our teams are affected."
That said, the earnings suggest that Take-Two employees may be about to feel a more tangible kind of business impact soon, in the form of layoffs. Following a report of $1.38 billion in net bookings for the quarter, falling short of its $1.41 billion guidance, Take-Two is preparing to undergo cost cutting measures that it projects will save it roughly $50 million per year. One of the areas Take-Two suggests this will impact is personnel.
When I asked Zelnick if this meant layoffs, he replied that "that's not the plan," but caveated that while he doesn't expect large-scale layoffs, some jobs may be lost.
"We don't expect some kind of broad-based RIF [reduction in force] or anything of the sort, but that said it's not as though we guarantee lifetime employment sadly," he said. "So there will be certain instances where jobs will be lost, but I think that will be pretty modest."
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