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.