Take-Two has canceled several unannounced games and quietly delayed others amid what the publisher calls a "challenging consumer backdrop."
Take-Two made the announcement during today's earnings report, saying that "the development timelines of some of our titles have lengthened, especially as we strive to redefine the creative standards of excellence in our industry, which affect our release slate for the year."
Take-Two will incur a $54.2 million impairment charge in the fourth quarter "related to capitalized software development costs for unreleased and canceled console and PC titles." In May 2021, Take-Two had said it aimed to release some 62 games by 2024 across a variety of formats and platforms.
Delays and cancellations have become frequent in the games industry, impacting big-budget releases from Starfield to Suicide Squad: Kill the Justice League.
Take-Two CEO: Consumers demand quality
Speaking with IGN, Take-Two CEO Strauss Zelnick attributed the delays to consumer demand for excellence among other other factors.
"The best possible way to look at it is that we're all seeking quality and consumers are demanding quality -- and sometimes that can take longer than expected," Zelnick said. "And another way to look at it is that we're having some productivity challenges. I think people here would say it's not all about productivity, it's about seeking excellence. I think the truth is probably somewhere in the middle."
Asked to clarify "producitivity challenges," Zelnick pointed to the company's hybrid work policy, which encourages workers to be in the office three times per week but sees many work remotely.
"My own personal view is we probably do our best work when we're together in person," Zelnick said. In terms of changing the policy, Zelnick said he would "listen to and trust his colleagues" but that many senior members of the company share his view.
Hybrid work is an ongoing discussion in the games industry, as it is in many other industries. The decision to return to the office fulltime at Activision Blizzard, Nintendo, and other companies has spurred backlash from workers, some of whom point to the impact on raising children among other issues.
Optimism for 2024
Elsewhere, Take-Two is optimistic about its release schedule, describing the fiscal period beginning in April 2024 as a "highly anticipated year for our company" with an "incredibly robust pipeline of projects that we believe will take our company to even greater levels of success."
Take-Two claims these releases will push it over $8 billion in net bookings, a leap that potentially points to a GTA 6 release date in this period. For comparison, Take-Two anticipates full-year net bookings between $5.45 billion and $5.55 billion in the 2024 fiscal year.
In the meantime, Take-Two has numerous games in development, including GTA VI, BioShock 4, and Judas — the new game led by Ken Levine. You can find the rest of the biggest games coming in 2023 right here.
Kat Bailey is a Senior News Editor at IGN as well as co-host of Nintendo Voice Chat. Have a tip? Send her a DM at @the_katbot.