Take-Two Shifts Strategy: AI Research Team Dismantled as Focus Intensifies on GTA VI Launch

Take-Two Interactive shuts down its AI research team, cutting senior roles. CEO Zelnick emphasizes human creativity over AI for flagship titles like GTA VI, despite Wall Street's 'Strong Buy' rating.

Take-Two Interactive Software has disbanded its dedicated artificial intelligence research unit, concluding seven years of development work with a targeted staff reduction. The move resulted in the elimination of at least four senior roles, including the Director of AI Research and two Senior Data Scientists. This specialized team originally stemmed from the core technology division of Zynga, which Take-Two acquired in 2022.

CEO Emphasizes Human Creativity in Game Development

The company’s strategic direction has been clearly articulated by CEO Strauss Zelnick. He has stated that while generative AI is suitable for routine tasks and improving efficiency, it is incapable of producing hit games. Zelnick dismissed the notion that a title like the upcoming Grand Theft Auto VI could be created by AI as "ridiculous," characterizing the technology as data-driven and inherently backward-looking. This perspective persists despite internal testing of hundreds of AI pilot projects through early 2026, with human creativity remaining central to the development of its flagship franchise.

This latest round of job cuts follows earlier cost-saving measures. In 2024, Take-Two reduced its workforce by five percent. The current action appears less about broad cost-cutting and more a deliberate refocusing of internal priorities—steering resources away from speculative AI research and toward the concentrated effort required for the Fall 2026 release.

Wall Street Maintains Confidence Amid Operational Shifts

Despite the internal restructuring and a reported loss per share of -$25.58 over the past twelve months, analyst sentiment on Wall Street remains positive. A consensus of 28 market researchers currently assigns the stock a "Strong Buy" rating. Their average price target stands at approximately $284, significantly above the current trading level. However, since the start of the year, the share price has declined by roughly 19%, leaving it trading notably below its key moving averages.

Investors are now looking ahead to the next quarterly earnings report, scheduled for May 15, 2026. For the 2026 fiscal year, management has provided Net Bookings guidance in the range of $6.65 to $6.7 billion. Whether the company meets this forecast is expected to depend heavily on the activation of the Grand Theft Auto VI marketing campaign in the latter half of the year.