Take-Two lays off head of AI division and team members

Take-Two Interactive, owner of Rockstar Games, has laid off Luke Dicken, head of its AI division, and several staff members under him. Dicken announced the move in a LinkedIn post, expressing disappointment over the end of his and his team's tenure at the company. Take-Two declined to comment on the layoffs.

Luke Dicken shared on LinkedIn that his time with Take-Two, referred to as T2, and that of his team has ended. He described the development as truly disappointing. The team had been working on cutting-edge technology to support game development, with expertise in areas like procedural content for games and machine learning. Dicken noted he is seeking new roles for his staff with these skills, though the exact number affected remains unclear beyond him and several team members spotted by Game Developer. Game Developer first spotted Dicken's post announcing the layoffs. The publisher, known for titles like Grand Theft Auto through its Rockstar Games subsidiary, did not respond to requests for confirmation. Take-Two has previously embraced generative AI tools to drive efficiencies and reduce costs. CEO Strauss Zelnick stated that such technology will not reduce employment but increase it, as it boosts productivity, GDP, and jobs in turn. The layoffs come amid preparations for Grand Theft Auto VI, expected to be a major release providing financial flexibility.

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Take-Two Interactive CEO Strauss Zelnick has reiterated that AI cannot produce massive hits like Grand Theft Auto 6, calling the notion laughable. In a recent interview, he emphasized the need for human creativity despite AI's potential to assist in asset creation. Zelnick expressed surprise at market reactions to AI tools like Google's Genie.

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Take-Two Interactive's shares fell 7.9% on January 31, 2026, following Google's unveiling of Project Genie, an AI tool for generating interactive worlds. The decline occurred ahead of the company's fiscal third-quarter earnings report scheduled for February 3. Investors are concerned about AI's potential impact on game development.

At the Game Developers Conference 2026 in San Francisco, generative AI tools drew mixed reactions, with demos from Google highlighting potential uses amid widespread developer skepticism. A recent industry report showed 52% of companies using the technology, but only 36% of workers incorporating it into their jobs, and 52% viewing it as harmful to the sector.

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Rockstar Games has issued a statement denying any link between its firing of around 34 employees and their union activities, attributing dismissals to leaks of confidential game information. This follows UK Prime Minister Keir Starmer's announcement of a ministerial investigation into the late October incident, amid ongoing IWGB accusations, employee protests, and parliamentary scrutiny.

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