Take-Two shuts down New-York based mobile video game developer Playdots. Take-Two acquired the company in 2020 for $192 million. The company’s hit mobile game Two Dots will still receive updates.
Related: Take-Two CEO is in favor of Microsoft-Activision acquisition
According to Bloomberg’s report, 65 employees will be laid off and can apply for other jobs at Zynga, and employees who cannot find a new role will receive compensation. The video game giant acquired Zynga in May 2022 for $12.7 billion.
Take-Two spokesperson Alan Lewis confirmed the shutdown saying “We believe this difficult decision will better align our resources with the needs of the business in today’s dynamic market. The operation of Playdots’ popular puzzle game, Two Dots, will continue at another Zynga studio and there will be no disruption of service.“
Two Dots was among the largest contributors in Take-Two and Zynga’s combined Q1 earnings along with games like Grand Theft Auto Online, Red Dead Redemption 2 and NBA 2K21.
Last month Take-Two also terminated its publishing deal with People Can Fly.
