Expect lay-offs at Take Two, warns analyst

April 5th, 2007, 20:03 Posted By: Shrygue

via Games Industry


Echoing comments from new Take Two boss Strauss Zelnick earlier this week, analyst firm AG Edwards expects redundancies at the Rockstar parent company.

The research firm also predicts that Take Two will be looking seriously at it's third-party relationships and it may sell off its distribution division, Jack of All Games.

"Lowering headcount, particularly at under-performing studios, evaluation of third-party vendor relationships and real estate costs, and a more stringent green light process," are all on the near-future agenda according to AG Edwards.

As highlighted by other analysts and the publisher itself, diversification into sports titles and other markets in recent years has not helped the company financially, says the analyst.

"We are cautious on Take Two's prospect considering there is still a reliance on the Grand Theft Auto franchise and the company has been unable to leverage diversification efforts into increased profitability," warned the firm.

Earlier this week Zelnick revealed that redundancies are a possibility, as the company looks to streamline its operations to please investors.

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