Take-Two Interactive

Take-Two Interactive Software, Inc. is an American video game holding company based in New York City. As one of the largest publicly traded game companies in the world, it is the parent company of major publishing labels Rockstar Games and 2K, making it the owner and publisher of highly successful franchises such as Grand Theft Auto, Red Dead Redemption, and NBA 2K.

Overview / Description

Take-Two Interactive was founded on September 30, 1993, by Ryan Brant, who served as its first CEO¹. The company found early success with games that utilized full motion video, such as Hell: A Cyberpunk Thriller, which featured actor Dennis Hopper. After going public in 1997, Take-Two began a series of acquisitions to expand its development, publishing, and distribution capabilities. A pivotal moment came in March 1998, when the company acquired assets from BMG Interactive², including the rights to the then-controversial Grand Theft Auto property³. This acquisition led to the formation of the Rockstar Games label, co-founded by Sam and Dan Houser, which would go on to develop the franchise into a global phenomenon, starting with the release of Grand Theft Auto III in 2001.

The early 2000s were a period of significant growth, with revenues exceeding US$1 billion by 2003, driven by the success of the Grand Theft Auto series. In 2005, Take-Two established its second major publishing label, 2K, after acquiring Visual Concepts and Kush Games from Sega, creating 2K Sports and consolidating other studios under the new brand⁴. However, this period was also marked by regulatory issues, including a U.S. Securities and Exchange Commission (SEC) investigation into accounting fraud and a separate investigation into options backdating⁵⁶, which resulted in fines and the resignation of founder Ryan Brant⁷. The company also faced controversy and legal action over the "Hot Coffee mod" in Grand Theft Auto: San Andreas.

These challenges led to a shareholder takeover in 2007, which saw the current management ousted and Strauss Zelnick installed as chairman⁸, with his partner Ben Feder becoming CEO (Zelnick would later take over as CEO in 2010)⁹. Shortly after, in 2008, the company rejected a hostile takeover bid from competitor Electronic Arts¹⁰. Under the new leadership, Take-Two continued its growth, buoyed by the monumental success of Grand Theft Auto V, which has sold nearly 100 million units and generated an estimated US$6 billion in revenue¹¹.

In recent years, Take-Two has expanded significantly into the mobile gaming market through major acquisitions, including Social Point in 2017 for US$250 million¹² and Zynga in 2022 for US$12.7 billion¹³. The company also established the Private Division label in 2017 to publish games from independent studios¹⁴, though this label was later sold in 2024 as the company shifted focus¹⁵. In 2024, Take-Two acquired The Gearbox Entertainment Company, adding the Borderlands franchise to its portfolio¹⁶. Despite this growth, the company has also undergone restructuring, including laying off 5% of its workforce¹⁷ and closing studios like Intercept Games and Roll7 in 2024¹⁸.

Branding and Design

Take-Two Interactive's primary business strategy revolves around a decentralized "label" structure, which it effectively invented with the establishment of Rockstar Games in 1998¹⁹. This model grants significant creative independence to its main publishing labels, Rockstar Games and 2K, allowing them to operate with their own infrastructure, management, and creative direction. This approach is credited with fostering innovation and a diversity of high-quality titles, from the action-adventure focus of Rockstar to the sports and strategy games of 2K. The company has also used specific branding for different market segments, such as the former 2K Play label for family-friendly titles. The company used a different logo from 1999 to 2004 before adopting its current design²⁰.

Products / Services

Take-Two Interactive operates as a holding company for its publishing labels and development studios, which create and publish video games across numerous genres.

Publishers

• 2K: Headquartered in Novato, California, this label is composed of divisions 2K Games, 2K Sports, and the former 2K Play. It handles sports simulation games like the NBA 2K and WWE 2K series, as well as other major franchises like BioShock, Borderlands, and Civilization.²¹
• Rockstar Games: Located in New York City, this label specializes in action-adventure games and is responsible for the Grand Theft Auto and Red Dead franchises.²²
• Zynga: Acquired in 2022, this label is a major force in the mobile gaming market, bringing franchises like FarmVille and Words with Friends under Take-Two Interactive.²³

Development Studios

Take-Two owns a wide array of development studios globally, organized under its publishing labels.

Locations

Take-Two Interactive is a global company with its worldwide headquarters located in New York City. Its primary operations are managed from several key locations:

• New York City, U.S.: Worldwide headquarters for Take-Two Interactive and the headquarters for the Rockstar Games label.
• Novato, California, U.S.: Headquarters for the 2K label, located at Hamilton Landing.
• Windsor, Berkshire, U.K.: Manages the company's European operations.
• Singapore: Manages the company's Asian operations.

The company also maintains a presence through its numerous development studios located across North America, Europe, and Asia.

Trivia

• In 2008, Electronic Arts (EA) launched a hostile takeover bid for Take-Two, offering approximately US$1.9 billion. Take-Two's board, led by Strauss Zelnick, rejected the offer as inadequate, and EA eventually let the offer expire.
• The company has been involved in litigation to protect its trademarks, filing disputes against entities attempting to register trademarks containing words like "rockstar," "bully," or "2K."⁴¹ This included a notable dispute against Hazelight Studios over the name of their game, It Takes Two.⁴²
• Take-Two has actively taken legal action to block the release of certain mods for Grand Theft Auto games, particularly those that impact multiplayer or are built using contentious reverse-engineering methods.⁴³
• In 2009, Take-Two settled class-action lawsuits for US$20.1 million related to the "Hot Coffee mod" controversy in Grand Theft Auto: San Andreas and the separate options backdating fraud.⁴⁴
• In July 2024, Take-Two Interactive became one of the video game publishers targeted by a labor strike initiated by the SAG-AFTRA union over concerns regarding actor protections related to the use of AI for voice and likeness replication.⁴⁵
• Former Rockstar North President Leslie Benzies filed a lawsuit against Take-Two and Rockstar in 2016 for $150 million in unpaid royalties. The litigation ended in 2019 with a confidential settlement.⁴⁶