Mark Androvich
23:45 (BST)
13/06/2007
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Take-Two closing New York 2K office
Layoffs, cancellations part of reorganization
Take-Two has revealed to GamesIndustry.biz that the New York office of 2K games is to close as the company moves to reorganise its business.
As reported earlier this week, Take-Two is embarking on a restructuring programme after net revenues fell by USD 60 million year-on-year.
Public relations advisor Ed Nebb has since told GI.biz, "The 2K New York office will be closed as part of the consolidation of the label's management and other functional operations on the West Coast."
Nebb declined to reveal the number of employees who will be made redundant, stating, "We have reduced the publishing staff connection with the reorganisation, although we have not disclosed the final number of positions affected.
"It's important to note that the goal of the reorganisation is not merely cost-efficiency, but about allowing Take-Two to do what it does best - create great, best-selling games," he continued.
Previously announced titles for Q3 and Q4 2007 appear to be on solid ground, but Nebb did state that the company has written off several unnamed products in development that were due to launch in the longer term.
"We have extensively reviewed the products in our pipeline," he said. "While we are comfortable with the economic assumptions underlying most of the titles, we did write off several products in development that were planned for release beyond fiscal 2007."
When asked if the cancellations included announced 2008 releases such as LA Noire or Beaterator, Nebb replied, "As you surmise, the projects written off were early works in progress, not major titles."
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