Take-Two restructuring, not delaying GTA IV

Publisher drops news of impending layoffs, squashes speculation of a delay for its forthcoming crime-action game.

When Take-Two Interactive's board of directors was taken over in March by a shareholder revolt, the newly installed management said its first priority would be to address the company's organizational structure. Today the company released financial results of its second fiscal quarter, and announced the first details of a restructuring plan to return the company to profitability.

The publisher listed four primary aspects of the restructuring. Take-Two will consolidate its marketing, sales, and operational functions based on what they do rather than where they are in order. It will also have some label and studio staff--human resources, legal, IT--report directly to the corporate level to increase accountability. The management, marketing, and business development operations of 2K Games and 2K Sports will be consolidated on the West Coast, and Take-Two's third-party PC distribution business will be folded into its North American sales operations.

"While the decisions we are announcing today were difficult and will unfortunately require employee layoffs, we believe these necessary actions will improve the financial and operational performance of Take-Two, leading to greater value for our shareholders," CEO Ben Feder said in a statement.

In an investor conference call after the release of its earnings, Feder said "a significant percentage of our workforce" was going to be laid off, with cuts coming in sales, marketing, and administrative positions.

As for the publisher's quarterly results, Take-Two reported revenue for the three months ended April 30 of $205.4 million, down from $265.1 million in the same time frame last year. Take-Two said it reflected the strength of last year's release of The Elder Scrolls IV: Oblivion, with the shortfall made up partially by sales of Grand Theft Auto: Vice City Stories and Major League Baseball 2K7. The publisher also posted a loss of $51.2 million, slightly worse than the $50.4 million it lost in the same quarter the year before.

In the conference call, Take-Two also squashed recent speculation from Wedbush Morgan Securities analyst Michael Pachter. When asked about Grand Theft Auto IV, executives reconfirmed the October 16 release date for the game, and said the premium edition of the game would arrive "day-and-date" with the bare-bones release. Feder also said he expects that "the release of Grand Theft Auto IV is going to to have a material beneficial impact on sales of the PS3 [hardware]."

The publisher also fleshed out its executive management roster today with the appointment of Lainie Goldstein as the company's chief financial officer. Goldstein had been serving as interim CFO, and previously worked for the publisher as senior vice president of finance.

As of press time, Take-Two Interactive shares were holding steady at $18.94 in after-hours trading.

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Discussion

222 comments
super_sniper345
super_sniper345

To the GeigerdolylWodd (wtf?), R* has announced that they will launch exclusive content on XBL for GTA IV. Episodic content is basically just added episodes and chapters. They also said that the exclusive content will not be just a tiny add-on, they said it will give you and extra 10-20 hours of gameplay.

Kirro_Zero
Kirro_Zero

Please... no more "premium editions." Stop making excuses to add 10-20$ onto the price of a game.

joel324
joel324

I just hope their telling the truth... can't w8 too...

GeigerdolylWodd
GeigerdolylWodd

What's this I hear about them scrapping plans for episodic content?

kennydiesalways
kennydiesalways

If I had a banana for every time producers say "no delay" I would be a very happy monkey

Proman84
Proman84

This game needs more Philip Glass music to be a masterpiece.

THEMOD3158
THEMOD3158

@flyingdutchdog While I agree with your opinion on GTA3, I also believe that opinion should extend to GTA: VC, which was another amazing game. I do agree the series got stale with GTA: SA. However, GTA is a system seller, regardless of your personal opinion of the game or the people who play GTA. In addition, according to the early press about GTA IV, the game is going to be severely overhauled with a much more mature storyline (dare I say, "grown up") and better game play. I expect quite a departure from what we've seen from the past three entries in the GTA series, and will be buying a PS3 for this game when it comes out. I suggest that in the meantime, you reserve your judgement until the game is released.

nappan
nappan

"blahblahblahblah NOT DELAYED blahblahblah" is what I heard. My response? YES! On thank you god YES YES!

lamprey263
lamprey263

There's so much coming out in the last few months of the year that'd be dumb just to avoid releasing next to Halo 3. Anyhow, I don't think GTA IV is going to push more PS3s by itself. First off, if someone already has an X360, they can just buy GTA IV for that. If they've neither a X360 or PS3, they may just look at the price, or they may just look at the games; either way, X360 has an advantage on both. Take into account Halo 3 will be creating a lot of hype at this point to, so if nobody has an X360/PS3 and is thinking to get one, there's another very strong reason to go X360.

danpc
danpc

yes, as said im sure theres going to be little difference between the different console versions, i'm sure that each will have its ups and downs (i won't go in to these as you can find them throughout reports), i myself will probably get the 360 version - due to myself not being a fan of the controller for the playstation - though i know people will say similar things about the 360 (or xbox) - thats just my opinion i guess, argue with me on this if you wish but to be honest i don't really care if people try forcing opinions upon me it won't change my mind.... And this will definately go for every fan of which ever console...

HALOISTHEBEST26
HALOISTHEBEST26

everyone look at flyingdutchdog's comment, that is a person who knows what his talkin about

samdonni
samdonni

WOO HOO! This is gonna be a totally wicked GTA!

jillwarrior
jillwarrior

yea! i can't wait to cap fools in Liberty. just disapointed that the main charecter isnt a woman:(

Teivan
Teivan

[This message was deleted at the request of the original poster]

xXMANIACALXx
xXMANIACALXx

i feel cheated, after all the delays i was getting used to them. Now there is no delay....i feel weird

TequilaSlammer
TequilaSlammer

i dunno bro, vice city was pretty cool. i never got bored of doing jumps on those sweet sweet bikes. and i also agree that the statement about the ps3 means that GTA will sell more consoles cos so far its been a little bit of a letdown. we all know summer is slow anyway for games, but guys, you have nothing to look forward to till september earliest

littletotheleft
littletotheleft

no, you genius. its because the ps3 isnt selling up to expectation that hes saying that gtaIV will sell more systems. oh yeah. congrats on owning one. you must be the best person in the whole world.

PS3_Kasper
PS3_Kasper

if this take2 guy is saying that the ps3 will sell more with the gta's release it means that the gta for the ps3 is way better!! and guess what I own one! pq eu sou gostoso e vcs nao aehiuoheaoiaheiheaiouae

flyingdutchdog
flyingdutchdog

It sounds like the lesser-endowed PS3 fanboys have to scream louder and louder to attain some attention. It used to be cars that the "smaller than average equiped male" used to make up for their, lets say, defiencies. Let's be honest, Grand Theft Auto is not a system seller ... in fact, it's a trite boring after playing some time. Perhaps a game for those between the ages of 16-18 who are just entering into puberty. There's nothing more fun than smashing up a hooker for the umpteenth time in the umpteenth version of a over-rated game. GTA 3 (first version was unique), but since then a total bore. So why fight amongst yourselves of which version is better? There is very little difference between the 360 and PS3 just as there was very little difference between the original xbox and pS2 (note: actually the xbox version looked a little better but not enough to squabble like desert rats) Those who enjoy the game, have fun ... just leave this silly macho console talk out of it .... it just makes you look that much more foolish in the eyes of the eduacated.

akhorahill
akhorahill

[This message was deleted at the request of the original poster]

littletotheleft
littletotheleft

yes... but when are executives ever reasonable? right. never.

IGDetail
IGDetail

I'm confused about how these companies can survive. First Nintendo lays off their PR department after soaring sales on their Wii (way to stick it to the guys who made the system a great seller) and now Take-Two is laying off the guys who make the sales. I think this company has a little too much trust in the 'games will sell themselves' idea (and yes, this has ALOT to do with the GTA4 release). Give it a few months and when they realize that stripping their work force only impacts the bottom line in the short run. Granted everyone is hyped about GT coming out, but wouldn't getting the marketing and sales team to make sure rollout is as smooth as possible make more sense than crossing fingers?

bigboy2555
bigboy2555

cool Next-Gen on the nice Xbox 360!

ballroomwest
ballroomwest

What "gnrlcryingwolf " wrote about console games being developed on high end PCs is perfectly correct and true, so why so many thumbs down? Must be little kiddies who don't know theyre gaming and tech facts! Cutting edge technology be it games, architecture, design, movies is all done on PCs. ("Pcs" can include Macs btw). Ever seen Toy Story, Spiderman, Pirates of the Carribean?? All done on PCs not consoles. but thats going off topic haha. LONG LIVE GTA. Heres waiting for the kickass PC version! ! ! And we all have MultiTheftAuto to keep us happy while we wait eh? :D Later.

VanGriffin
VanGriffin

Of course the X360 is becoming more family oriented. Look who own it. Anyways I will always prefer the PS3 over X360 and glad the game is coming to PS3. I don't need an add-on for the X360 just to bring the price and quality up to... a PS3. GTAIV will rule.

anarchicgoth
anarchicgoth

awesome! Next-Gen on the beautiful Xbox 360!

Zoomer30
Zoomer30

Transscript of inestor call: "Ok we have been pretty much phoning it in for the last 5 years as far as keeping track of the money goes, so now we have to fire everyone and hire retired circus chimps. Watch for the poo"

infirmaryblues
infirmaryblues

Little to the left- don't stand your 360 up. I know it shouldn't do that, but lay it flat and it won't scratch those discs.

Ross20_PS3_OWNS
Ross20_PS3_OWNS

Cant wait to get this Game. I'll be so Happy playing Next-Gen GTA on my PS3! 4 Months 7 Days and Counting!

littletotheleft
littletotheleft

xbox 360 is looking to be more family orientated. maybe instead of this move they should fix their damn systems. im on my second in two years and this one(although it hasnt had a complete hardware failure) is making circular scratch patterns on all of my games and making them completely useless. there is a disc replacement program but that includes only games i dont own. i might just jump board to sony. thatll be tough since ive been with microsoft since the first xbox. sorry..i need to vent my anger some where. i wanted to go buy a used oblivion game since mine was ruined. this game is what? 2 years old? new it costs 60 bucks so you would think a used one would be lots cheaper after all this time. $54.99. why? i know its one of the greatest games ever...but its on ps3 as well. may as well jump board if microsoft doesnt fix this for me. i know this has nothing to do with gtaIV

bgres077
bgres077

Give it a month, then we'll see if it's delayed or not.

smfes
smfes

gief xbox360

c_mcafee
c_mcafee

V-r0cK, I believe gamespot has a 360 bias because the 360 has fun games. When the PS3 gets more than a couple fun games the bias probably won't be so pronounced.

Reetesh
Reetesh

phew! no delay.. me happies :D

NandoSupes
NandoSupes

I'm a firm believer when it comes to games that the more time they take to make it perfect ,the better the game is.if it comes out in October good,if not good too. I rather play a good polished well made game than a piece of crap that I can use as a coaster to put my coffee on,and by the way the game is coming out for the 360 and PS3 so fanboys relax.

maxxorz
maxxorz

you know what? shut up. Sure GameSpot might lean more to the 360 side, but thats because its the bigger, superior console in sales and marketshare. GameSpot had a HUUUUUUUUGE bias towards the PS2, so give me a break!

maxxorz
maxxorz

[This message was deleted at the request of the original poster]

lowenergycycle
lowenergycycle

Good grief! Stick GTA4 in the headline and everybody goes mad! This story has roughly NOTHING to do with GTA4. So what - Take2 are having a bit of a reshuffle. I'm sure if the Famous GameSpot Bias Machine suggested Bioshock may be delayed thanks to this all this corporate hoo-haa there wouldn't be so much fuss.

V-r0cK
V-r0cK

LOL So funny reading everybody's comments and seeing the thumbs up and thumbs down rating. Notice how whenever a person comments anything that benifits the PS3 there are more thumbs down then thumbs up. Alot of PS3 haters reading these threads, but then again Gamespot is the home of Xbox360 bias. Now watch this comment of mine get alot of thumbs down because of the Xbox fanboys giving it to me. LOL

RiseFM
RiseFM

very cleansing. Good for new beginnings.

fuzzier
fuzzier

positivevibes : a week is nothing ...

dmish82
dmish82

Can't go wrong if they release it before Xmas.

positivevibes
positivevibes

@Generic_Dude: i dunno what gta series you remember, but every gta release date i can remember has been delayed by at least a week.

satanyoka
satanyoka

Oh my god, a company firing people! Its teh d00med! Like Sony, eh?! Just as I expected, pathetic.

Metalhead8282
Metalhead8282

Way to go Take-Two to inspire consumer confidence.........sucks to be working at Take Two right now....any bets that GTA 4 will be delayed? I'm takin bets people!!!!