Take-Two has canceled several unannounced games and quietly postponed others amid what the publisher called a “tough backdrop for consumers.”
Take-Two made the announcement during today’s earnings call, saying, “Particularly as we strive to redefine the standard of creative excellence in our industry, development schedules for some titles have been extended, and that’s what we’re seeing this year. It will affect the release schedule.”
Take-Two will record an impairment charge of $54.2 million in the fourth quarter “related to capitalized software development costs for unreleased and canceled console and PC titles.” In May 2021, Take-Two announced that it aims to release around 62 games in various formats and platforms by 2024.
Delays and cancellations are common in the gaming industry, affecting big-budget releases from Starfield to Suicide Squad: Kill the Justice League.
Take-Two CEO: Consumers Want Quality
In an interview with IGN, Take-Two CEO Strauss Zelnick said the delay was due to consumer demand for excellence, among other factors.
“The best view is that we all want quality, and consumers want quality, and sometimes it takes longer than expected,” Zelnick said. “Another way to look at it is that we are facing a productivity challenge. I think people here would say that productivity is not everything and it is important to seek excellence. I think it’s probably somewhere in between.”
Asked to clarify “productivity challenges,” Zelnick said the company encourages employees to come to the office three times a week, but says many employees are working remotely. He mentioned a hybrid work policy.
“My own personal view is that we probably do our best work when we’re together in person,” Zelnick said. Zelnick said he would “listen and trust his colleagues” in changing policy, but said many senior members of the company shared his thoughts.
Like many other industries, the gaming industry continues to debate hybrid work. The decision to return to full-time offices at companies such as Activision Blizzard and Nintendo has sparked a backlash from workers, some of whom said it would affect their children, among others.
Optimistic outlook for 2024
Take-Two is also optimistic about its release schedule, calling the fiscal year beginning in April 2024 a “very exciting year for the company” and adding that “an incredibly strong pipeline of projects will continue to drive the company forward.” I believe that we will raise it to a higher level,” he said. success. ”
Take-Two claims that these releases will drive over $8 billion in net bookings, which is a huge number that could potentially see a GTA 6 release around this time. For comparison, Take-Two expects full-year net bookings for fiscal 2024 to go from $5.45 billion to $5.55 billion.
Meanwhile, Take-Two has a number of games in development, including GTA VI, BioShock 4, and the new Ken Levine-led Judas. Check out the rest of the big games coming in 2023 here.
Kat Bailey is IGN’s senior news editor and co-host of Nintendo Voice Chat. Any tips? Send her a DM at @the_katbot.
