Grand Theft Auto Parent Shuts Two Iconic Game Studios as Part of Sweeping Layoffs
Portfolio Pulse from Anusuya Lahiri
Take-Two Interactive Software Inc (NASDAQ:TTWO), known for the Grand Theft Auto franchise, is closing subsidiaries Roll7 and Intercept Games, impacting 70 jobs, as part of broader layoffs affecting 600 employees. This move is part of a trend in the gaming industry, with companies like Sony, EA, and Microsoft also announcing layoffs. Meanwhile, Disney and Netflix are increasing their investments in gaming. TTWO stock is accessible through ETFs like NERD and HERO.
May 02, 2024 | 1:12 pm
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Take-Two Interactive is closing two game studios and laying off 70 employees as part of a larger reduction affecting 600 jobs.
Closing subsidiaries and laying off employees could negatively impact investor sentiment in the short term due to concerns over the company's operational efficiency and future growth prospects.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
TTWO is accessible to investors through the Global X Video Games & Esports ETF, following a 17% stock gain in the past year.
The impact of Take-Two's layoffs on HERO may be limited due to the ETF's diversified exposure across the video games and esports sector, potentially cushioning any negative effects from a single company's performance.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
NEUTRAL IMPACT
TTWO stock, which gained over 17% in the last 12 months, is part of the Roundhill Video Games ETF's portfolio.
While the layoffs at Take-Two Interactive may affect investor sentiment, the diversified nature of NERD's portfolio could mitigate direct negative impacts on the ETF's performance.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70