Take-Two Shares Profits with Rockstar Games

Under new management, Take-Two Interactive Software has established an incentive compensation program for the Rockstar Games label that is primarily based on a profit-sharing arrangement. The publisher has also entered into new, long-term employment agreements with members of the creative team of its wholly-owned Rockstar Games publishing label, and has agreed to fund the future development of certain intellectual properties to be developed and owned by a newly formed company controlled by key Rockstar Games team members and published exclusively by Take-Two.

Team members covered under the new employment agreements include Sam Houser, Dan Houser, Leslie Benzies and several other key members of the creative team behind the blockbuster Grand Theft Auto series. The employment agreements have an initial term ending on Jan. 31, 2012.

Sam Houser, founder and exec producer of Rockstar Games, comments, ‘The entire Rockstar team has always been dedicated to making groundbreaking games with unprecedented production values, style and depth. We are excited to continue our partnership with the new management team at Take-Two, who have helped us to protect the unique atmosphere that fosters creativity and innovation.’

Gaming juggernaut Electronic Arts recently attempted to acquire Take-Two, which ultimately rejected the $2 billion buy-out offer. The bid was made before Take-Two released Grand Theft Auto IV, which busted the record for day-one grosses generated by any entertainment product. The title debuted in May and sold approximately 3.6 million units on its first day at retail to earn $310 million. It was also named Game of the Year at Spike TV’s Video Game Awards held on Sunday. Take-Two also has a hit franchise in the sci-fi/horror game Bioshock, which racked up awards last year and will be made into a major motion picture by Pirates of the Caribbean director Gore Verbinski.