GTA publisher, Take 2 is set to see widespread redundancies within PAL territories; and the company's peripheral manufacturing subsidiary, Joytech may soon be up for sale.
UK industry mag MCV reports that by the end of June the company will confirm the departure of most of its European managers, leaving sales and marketing in all PAL territories to report to Take 2's European HQ in Geneva.
Similarly, subsidiaries may well be sold off in order to stabilise the ailing company by allowing it to focus on its core business. Joytech is apparently at the top of the list.
The news comes in the wake of Take 2 posting a net loss of $52.2 million (£27m) in its financial report on Monday (11th June).
The company recently restructured the higher echelons of its management, with Paul Eibeler being ousted as CEO and a number of other board members going with him.
Take 2’s international managing director, James Ellingford, cited high next-gen development costs as part of the reason for the restructuring, saying, “These pro-active measures also will help offset the increased development costs for next-generation hardware platforms, as well as provide increased value for our shareholders.”
Ellingford also said of the Take 2's move “to strengthen the company’s performance and competitiveness,” that, “In terms of our international business, this entails a significant restructuring that will consolidate and align our marketing, sales and operational functions according to business discipline rather than geographic area.”
In other words: the fat's being cut off, and Europe's where the fat is.
In related financial news, Atari had to delay the posting of its financial results because it needs more time to calculate a 'goodwill impairment charge'.
This is due to the fact that it currently has $54.1 million (£27m) of positive assets sitting on its books in the form of 'good will' - an intangible asset. This goodwill now has to be assessed in real terms. In the event that some or all of it is assessed as being "guestimated" value rather than real, the goodwill impairment charge has to be paid. This charge could be valued at a portion of - or even the entire - £27m figure. This will then be added to the currently declared overall losses of $17.2 million (£8.5m).
Atari was already neck deep in it by January, and Take 2 has barely been faring better. Both companies own valuable properties and have high profiles; we can only hope that their current troubles are passing and are not indications of the way the industry as a whole is going.
UK industry mag MCV reports that by the end of June the company will confirm the departure of most of its European managers, leaving sales and marketing in all PAL territories to report to Take 2's European HQ in Geneva.
Similarly, subsidiaries may well be sold off in order to stabilise the ailing company by allowing it to focus on its core business. Joytech is apparently at the top of the list.
The news comes in the wake of Take 2 posting a net loss of $52.2 million (£27m) in its financial report on Monday (11th June).
The company recently restructured the higher echelons of its management, with Paul Eibeler being ousted as CEO and a number of other board members going with him.
Take 2’s international managing director, James Ellingford, cited high next-gen development costs as part of the reason for the restructuring, saying, “These pro-active measures also will help offset the increased development costs for next-generation hardware platforms, as well as provide increased value for our shareholders.”
Ellingford also said of the Take 2's move “to strengthen the company’s performance and competitiveness,” that, “In terms of our international business, this entails a significant restructuring that will consolidate and align our marketing, sales and operational functions according to business discipline rather than geographic area.”
In other words: the fat's being cut off, and Europe's where the fat is.
In related financial news, Atari had to delay the posting of its financial results because it needs more time to calculate a 'goodwill impairment charge'.
This is due to the fact that it currently has $54.1 million (£27m) of positive assets sitting on its books in the form of 'good will' - an intangible asset. This goodwill now has to be assessed in real terms. In the event that some or all of it is assessed as being "guestimated" value rather than real, the goodwill impairment charge has to be paid. This charge could be valued at a portion of - or even the entire - £27m figure. This will then be added to the currently declared overall losses of $17.2 million (£8.5m).
Atari was already neck deep in it by January, and Take 2 has barely been faring better. Both companies own valuable properties and have high profiles; we can only hope that their current troubles are passing and are not indications of the way the industry as a whole is going.
Read More Like This
Comments
ultimateassmonkey 15 Jun 2007 11:56
1/7
I would say this is a sign of things to come in the industry as a whole.
Not good... Just not good at all.
But then who can you blame?! The developers or those that created the hardware?!
I think the latter... But that's my opinion.
Not good... Just not good at all.
But then who can you blame?! The developers or those that created the hardware?!
I think the latter... But that's my opinion.
Joji 15 Jun 2007 15:42
2/7
You hit it on the nose Kalpesh. And bizarrely, it just as Nintendo said it would be. High dev costs can be a killer and not all developers will be able to break even, no matter how much their good intentions might be.
Have to say never thought I'd see the day Take 2 would be in such a mess, especially after all their success. It's shame too to see Atari back in dire straights for a second time.
It's very possible there could be more problems on the horizon, but do you really see Sony flinching that much, which shows just how much Blu Ray (and commitment to film etc) is hurting the games industry in the long run. Nothing wrong with normal dvd, but Sony had to play big shot. Developers/publishers are now feeling the pain of that shot shrapnel. With Sony themselves recently laying off staff in U.K and japan (and maybe U.S) there's grave need to worry.
Many will be thinking Wii and 360 aren't that bad after all. Better to have something to work on, than no work at all.
Have to say never thought I'd see the day Take 2 would be in such a mess, especially after all their success. It's shame too to see Atari back in dire straights for a second time.
It's very possible there could be more problems on the horizon, but do you really see Sony flinching that much, which shows just how much Blu Ray (and commitment to film etc) is hurting the games industry in the long run. Nothing wrong with normal dvd, but Sony had to play big shot. Developers/publishers are now feeling the pain of that shot shrapnel. With Sony themselves recently laying off staff in U.K and japan (and maybe U.S) there's grave need to worry.
Many will be thinking Wii and 360 aren't that bad after all. Better to have something to work on, than no work at all.
more comments below our sponsor's message
oldest gamer 18 Jun 2007 13:09
3/7
Take Two is going down. Even with the usual M$ payoff they can't make ends meet? This is what Karma is boys and girls. Take Two has forgotten their fathers and will pay the price by loosing valid customers (like myself). How can a company that was built form loyal Sony gamers turn their back on them for $50 million form M$? I bought a PS2 for GTA Vice City and I assume many more would by a PS3 for GTAIV. Take Two has decided to screw us Sony gamers over by making less of a game for a technically superior console. Time to reap what you've sewn Rockstar, REAP IT!
KARMA 3 Dec 2007 09:08
4/7
What do you expect with an evil criminal as international managing director- james ellingford.
This guy is a well known liar, i would get the authorities to keep a close eye on him.
Sack this imposter before take2 collapses
This guy is a well known liar, i would get the authorities to keep a close eye on him.
Sack this imposter before take2 collapses
Rutabaga 3 Dec 2007 15:50
5/7
Joji wrote:
It's very possible there could be more problems on the horizon, but do you really see Sony flinching that much, which shows just how much Blu Ray (and commitment to film etc) is hurting the games industry in the long run. Nothing wrong with normal dvd, but Sony had to play big shot.
What has Blu-Ray got do with this?
brian miles 18 Feb 2009 01:26
6/7
KARMA wrote:
What do you expect with an evil criminal as international managing director- james ellingford.
This guy is a well known liar, i would get the authorities to keep a close eye on him.
Sack this imposter before take2 collapses
so he was sacked , caught fixing the books This guy is a well known liar, i would get the authorities to keep a close eye on him.
Sack this imposter before take2 collapses
karma 18 Jun 2012 20:19
7/7
@brian_miles he jumped before he was pushed
he is a very nasty sociopath
he is a very nasty sociopath