The video game industry has been hit hard by the economic downturn caused by the COVID-19 pandemic. Take-Two Interactive, one of the largest video game publishers, recently announced layoffs at its Private Division label following a difficult third quarter.
Private Division is a publishing label owned by Take-Two Interactive that focuses on developing and publishing games from independent developers. The label was founded in 2017 and has since released titles such as Kerbal Space Program, Ancestors: The Humankind Odyssey, and The Outer Worlds.
Unfortunately, the difficult economic conditions caused by the pandemic have had a negative impact on Take-Two’s business. The company reported a net loss of $98.8 million for the third quarter of 2020, compared to a net income of $159.3 million for the same period in 2019. As a result, Take-Two has had to make difficult decisions in order to remain financially viable.
The layoffs at Private Division are part of a larger restructuring effort at Take-Two. The company has also announced plans to reduce its workforce by 7%, or approximately 300 employees, across all divisions. In addition, Take-Two has said that it will be reducing its spending on marketing and other non-essential activities in order to save money.
The layoffs at Private Division are a reminder of the difficult economic conditions that the video game industry is facing. While the pandemic has caused disruption in many industries, the video game industry has been particularly hard hit due to the closure of physical stores and the shift to digital sales. It remains to be seen how Take-Two and other video game publishers will be able to weather the storm and come out on the other side in a better position.
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