GTA 6 May Not Release by March 2025, Take-Two Revenue Forecast Suggests

Take-Two Interactive Software forecast fourth-quarter bookings below market expectations and cut its annual estimates on Thursday, on signs of weak demand for its gaming titles such as NBA 2K, sending its shares plunging 10 percent after the bell.

Lower consumer spending and stiff competition from players such as Electronic Arts and Microsoft-owned Activision Blizzard are hurting the video game publisher.

Take-Two forecast fourth-quarter bookings in the range of $1.27 billion (roughly Rs. 10,542 crore) to $1.32 billion (roughly Rs. 10,957 crore), compared with analysts’ expectations of $1.51 billion (roughly Rs. 12,534 crore), according to LSEG data.

It also cut its projection for full-year bookings to a range of $5.25 billion (roughly Rs. 43,578 crore) to $5.30 billion (roughly Rs. 43,993 crore) from its earlier forecast of $5.45 billion (roughly Rs. 45,239 crore) to $5.55 billion (roughly Rs. 46,069 crore).

“The forecast cut is almost entirely attributable to the shift of a game out of the fiscal year, so no real impact on the company’s long-term prospects”, said Wedbush securities analyst Michael Pachter.

But the company’s latest projection of “a little above $7 billion (roughly Rs. 58,105 crore) for net bookings” for fiscal 2025, after its last year’s downwardly revised forecast of under $8 billion (roughly Rs. 66,406 crore) dashed investors’ hopes.

They were expecting a boost from Take-Two’s Grand Theft Auto VI, the latest installment of the best-selling franchise that is set for a 2025 release.

“The reduction in outlook tells you it’s (Grand Theft Auto VI) not coming next fiscal year,” Pachter added.

Third-quarter hit

Take-Two’s net bookings fell 3 percent to $1.34 billion (roughly Rs. 11,122 crore) in the third quarter, in line with analysts’ estimates.

The solid performance of games such as GTA Online and the Red Dead Redemption series was partially offset by softness in mobile advertising and sales of NBA 2K, according to Take-Two CEO Strauss Zelnick.

On an adjusted basis, the company earned 71 cents per share compared with estimates of 72 cents.


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GTA 6 Trailer Coming This Tuesday, Rockstar Games Confirms

Grand Theft Auto 6 trailer release date is finally upon us, as confirmed by Rockstar Games via a tweet. The first footage from the highly-anticipated crime odyssey sequel will be out on Tuesday, December 5, at 7:30pm IST in India/ 9am ET in the US, with the publisher only posting an image of a sunset and palm tree silhouettes — confirming previous claims that it’s set in a fictionalised version of Miami, which franchise veterans might recognise as a return to Vice City. With that, it is clear that Geoff Keighley won’t be presenting the trailer at The Game Awards 2023, though a teaser or some screenshot drops are always possible.

Not much was known about GTA 6 since a massive data leak from mid-2022, which revealed in-development gameplay of our lead crime couple — allegedly Jason and Lucia — robbing a diner in broad daylight. Yep, this would mark the first female protagonist in the franchise’s controversial history, which has, for the most part, portrayed women as sex objects or nagging moms/wives. It is also worth mentioning that Rockstar hasn’t revealed an official title for the game yet, merely referring to it as the ‘next Grand Theft Auto,’ so it could very well be a spin-off with some outlandish subtitle. The sequel has been a long time coming, with a May earnings call at Rockstar parent Take-Two Interactive hinting that the GTA 6 launch window could be set for the fiscal year 2025 (opens in April 2024 in Rockstar’s case).

Earlier this month, the studio also scrapped the ‘Social Club’ branding from the website, referring to its online multiplayer service as ‘Rockstar Games platform,’ in addition to getting rid of the yellow block in its logo — hinting at some big changes to usher in the new era. At the time of writing, the studio has deleted all previous posts from its Instagram account, maintaining only the aforementioned trailer release date banner. As anticipation for GTA 6 grew, GTA Online served as the decade-long cash cow for Rockstar, delivering near-endless multiplayer content that easily rivalled the average AAA live service game. For now, it’s unclear whether the existing Social Club members will simply be updated to cater to the new entry or if players will be forced to migrate their data to a new account.

As of October, the 2013-released Grand Theft Auto V has sold 190 million copies worldwide, with minor graphical and performance upgrades to adjust to two whole console generations. Just yesterday, Rockstar confirmed that its remastered Grand Theft Auto trilogy will be available to play on Netflix from December 14 onwards — accessible to subscribers of all tiers and playable exclusively on Android, iOS, and the Netflix phone app.

Grand Theft Auto 6 will probably release on the current-gen PS5 and Xbox Series S/X first, before heading to PC — as seen with previous Rockstar entries.


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GTA 6 Trailer Is Coming Early December, Rockstar Games Confirms

GTA 6 is getting a trailer in early December, Rockstar Games has confirmed. The news follows a recent report claiming that the developer was planning an announcement ‘as early as this week.’ Studio co-founder Sam Houser attested to those claims, adding that next month also marks Rockstar’s 25th-anniversary celebration, and thanked players for their continued support over the decades. It’s been over 11 years since Grand Theft Auto V launched in 2013, which at the time of writing has sold over 190 million copies — 5 million of them were sold in Q4 2023, thanks to next-gen upgrades and the GTA Online segment still going strong.

“We are very excited to let you know that in early December, we will release the first trailer for the next Grand Theft Auto. We look forward to many more years of sharing these experiences with all of you,” the tweet reads, giving desperate fans something to look forward to. As for whether the trailer launch is planned for The Game Awards on December 7, only time will tell, but the timeframe certainly fits. Of course, the awards show host and organiser Geoff Keighley hasn’t commented on GTA 6’s presence at the event, but it’s not out of fashion for them to keep things quiet and save it as the final mic drop. It’s worth noting, however, that Rockstar Games has avoided making announcements at industry events in the past, instead preferring to release reveals and trailers on their own channels.

This marks only the second official GTA 6 update from Rockstar Games since confirming that the game is in development, last year. There is no word yet on a release window, which might be revealed alongside the trailer next month. However, a May earnings call and subsequent quarterly reports from the studio’s parent company Take-Two Interactive have suggested that the launch window for GTA 6 is set for fiscal year 2025. In Rockstar’s case, this window opens in April 2024.

Elsewhere, Hollywood actors have finally arrived at a tentative deal with major production companies, ending the 118-day-long strike. Back in September, it was reported that video game performers might also join the cause, wanting fair payouts and fighting back against unregulated use of artificial intelligence to replace actors. However, Take-Two CEO Strauss Zelnick claimed in an interview that it was ‘unlikely’ that video game actors would follow in Hollywood’s footsteps and go on strike. And even if they did, he claims that GTA 6 is ‘completely protected’ from any delays happening — this could very well be an indication that all voice lines have been recorded and finalised for release and that Rockstar would continue fine-tuning the game until launch. The studio has been trying to get rid of its crunch culture for a while now after some employees spoke out against the harsh working conditions and the resulting burnout.

In September 2022, Rockstar Games suffered a severe security breach, causing a collection of over 90 in-development gameplay videos to leak online. One of those clips confirmed previous leaks, which suggested that GTA 6 would be introducing its first female protagonist, who was seen partaking in a daytime heist at a diner. The game is reportedly set in a fictionalised version of Miami and features two protagonists — a man and a woman — by way of the real-life American crime duo Bonnie and Clyde. During its Q4 2023 earnings report, Rockstar Games also revealed that Red Dead Redemption 2 had sold 57 million copies.

Grand Theft Auto 6 will probably release on the current-gen PS5 and Xbox Series S/X first, before heading to PC — as seen with previous Rockstar entries.


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GTA 6 Said to Feature Female Main Character as Rockstar Games Cleans Up Its Frat-Boy Culture

In the summer of 2020, after a police officer killed George Floyd, Rockstar Games quietly shelved a mode of play it had planned to release for its Grand Theft Auto Online game. Called Cops ‘n’ Crooks, the mode was a twist on the children’s game where players organize into teams of good guys and bad guys, but seemed especially tone-deaf during the global reckoning over police violence. Senior executives at the company, concerned about how the narrative might be interpreted during a time of heightened skepticism and mistrust of American police, put it aside. They still haven’t made plans to bring it back, according to people familiar with development.

This was one of several politically sensitive actions Rockstar, a division of Take-Two Interactive Software, has taken in recent years. The company removed transphobic jokes from the most recent console release of Grand Theft Auto V and significantly narrowed its gender pay gap. Rockstar’s next game, Grand Theft Auto VI, will include a playable female protagonist for the first time, according to people familiar with the game. The woman, who is Latina, will be one of a pair of leading characters in a story influenced by the bank robbers Bonnie and Clyde, the people said. Developers are also being cautious not to “punch down” by making jokes about marginalized groups, the people said, in contrast to previous games.

Moves like these once seemed unthinkable for a company whose best-selling franchise is a satirical depiction of America that involves playing gangsters who kill civilians and where women are mostly depicted as sex objects. Grand Theft Auto V was a nihilistic parody that threw insults at everything, from right-wing radio hosts to liberal politicians. Inside the company, the tone wasn’t much different. Rockstar employees described a workplace culture full of drinking, brawling and excursions to strip clubs. The company was an early symbol of an industry-wide problem of long hours at the office, known as crunch, in which staff were expected to be at their desks many nights and weekends in order to keep a game on schedule.

That strategy was financially successful and turned Grand Theft Auto V into the second-best selling game of all time, with 165 million copies sold. It also led to burnout, attrition and a public controversy in 2018 that prompted hundreds of Rockstar employees to speak out about the difficult work environment.

Since that outcry, Rockstar has attempted to reinvent itself as a more progressive and compassionate workplace, according to interviews with more than 20 people who work there or left recently, all of whom requested anonymity because they weren’t authorized to speak publicly. One employee described it as “a boys’ club transformed into a real company.” A spokesman for Rockstar declined to comment.

Can a kinder, gentler Rockstar still produce the chart-topping caliber of game the studio has become known for? Some employees aren’t sure. Morale across the company is higher than it’s ever been, according to many staffers. But the development of Grand Theft Auto VI has been slower than impatient fans and even longtime employees have expected.

Much of that has to do with the pandemic, but the delay is also due to some of the changes that the company implemented in an effort to improve working conditions, such as a restructuring of the design department and a pledge to keep overtime under control. Some workers say they’re still trying to figure out how to make games at this new iteration of Rockstar and wonder even what a Grand Theft Auto game looks like in today’s environment. Besides, several Rockstar employees pointed out that you can’t really satirize today’s America — it’s already a satire of itself.

Between the company’s new mandate and the 2019 departure of Dan Houser, who led creative direction on many previous Rockstar games, all signs suggest Grand Theft Auto VI will feel very different than its predecessor.

​​​​​Rockstar Games was founded in 1998 by a handful of British game-makers as a subsidiary of Take-Two. With 2001’s Grand Theft Auto III and its sequels, the company revolutionized open-world video games and grew to employ thousands of people, with offices in California, New York, across the UK and beyond. Grand Theft Auto products accounted for 31 percent of Take-Two’s $3.5 billion in total revenue in fiscal 2022, according to company filings.

The studio was built on a culture of seven-day work weeks, said Jamie King, a founder who left after eight years. But, he said, that sort of culture is “unsustainable.” Games like Red Dead Redemption and Max Payne 3 required what some employees referred to as “death marches”—months of mandatory 14-hour days and weekends that took a toll on employees’ lives, mental health and sometimes marriages.

In October 2018, shortly before the release of Red Dead Redemption 2, Houser, one of Rockstar’s founders, said his team had been working “100-hour weeks” to finish the game. The comments, which Houser later walked back, were the tipping point for many employees.

Similar complaints have rippled through the industry in recent years. Game developers working at Activision Blizzard, Riot Games and Ubisoft Entertainment SA have all criticized their employers for issues ranging from sexual discrimination to overwork. Activision Blizzard is being sued by the state of California over allegations of sexual harassment and discrimination. While those companies have acknowledged their issues and vowed to change, none has done as much in response to a worker revolt as Rockstar, according to people across the company.

The transformation of Rockstar includes changes to scheduling, converting contractors to full-time employees and the ouster of several managers that employees saw as abusive or difficult to work with. When the pandemic started, workers received care packages, cloth masks and surprise bonuses. During the protests over the death of George Floyd, a Black man who was murdered by police officers, the company said it would match donations to Black Lives Matter charities. Employees have been given new mental health and leave benefits. A new policy called “flexitime” allows staff to immediately take time off for every extra hour they work. And for the past four years, management has promised that excessive overtime won’t be required for Grand Theft Auto VI, one of the most-highly anticipated games by fans and investors on the planet.

Sticking to that pledge has already prompted changes to the game. Original plans for the title, which is code-named Project Americas, were for it to be more vast than any Grand Theft Auto game to date. Early designs called for the inclusion of territories modeled after large swaths of North and South America, according to people familiar with the plans. But the company reeled in those ambitions and cut the main map down to a fictional version of Miami and its surrounding areas.

Rockstar’s plan is now to continually update the game over time, adding new missions and cities on a regular basis, which the leadership hopes will lead to less crunch during the game’s final months. Still, the game’s world remains large, with more interior locations than previous Grand Theft Auto games, impacting the timeline.

To help avoid overtime, Rockstar has also added more producers to keep track of schedules, a move that’s mostly been positive, developers said, but one that has also caused bottlenecks. Some employees said they found themselves waiting around to communicate through middlemen or that it felt like multiple people were in charge, leaving them unsure of who should make the final call.

Rockstar put in place a new management structure following the departure of former design director Imran Sarwar, who was accused by several employees of bullying and verbal abuse. His position was filled by three other directors, creating what several people described as a “too many cooks” situation where design decisions are frequently left in flux or contradict one another. Some core aspects of the game, such as combat, were still going through changes even as developers expected them to be locked down, employees said. Sarwar didn’t respond to a request for comment.

Industry analysts anticipate that the next Grand Theft Auto will be out sometime in Take-Two’s 2024 fiscal year, which runs from April 2023 through March 2024, but developers are skeptical. The game has been in development in some form since 2014. Although there are loose schedules in place, people interviewed for this article said they didn’t know of any firm release date and that they expect the game to be at least two years away. Earlier this year, a group of designers quit Rockstar’s Edinburgh office, telling colleagues they were sick of the lack of progress.

Many others, however, say they’re content to work at a company where there’s little pressure to get a new game out the door. Grand Theft Auto V, which came out in 2013, is the most profitable entertainment property of all time thanks to its multiplayer component, Grand Theft Auto Online. That unprecedented financial success has given Rockstar leeway to make sweeping changes and to take its time on the next project. And, as one staff member pointed out, overhauling Rockstar’s culture could help with retention and recruitment as well as lead to games that are “better for everyone working on them,” and presumably the people playing them, too.

© 2022 Bloomberg L.P.


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