Michael Pachter: Rockstar North may split from Take-Two

The contract between Take-Two Interactive and Rockstar North expires in 14 months. Because of this, Wedbush Morgan analyst Michael Pachter is saying that the developers of the Grand Theft Auto series might actually consider following Bungie's footsteps and set up their own camp.

Pachter pointed out that the move will not be caused by any friction between both parties. Rockstar North might decide to split because of the higher profits they could potentially pick up as an independent developer. He said:

I don't think that this is an issue of dissatisfaction with Take-Two; rather, I think it is rational to believe that in the wake of the $850 million Pandemic/BioWare deal, high quality developers like Bungie and [Rockstar] North would look to test their market value.

If Pachter's prediction holds true and Rockstar North does decide to split, it opens up quite a few opportunities for the company. For example, the developers might forgo going solo and sign a lucrative deal with another publishing company such as Ubisoft or Electronic Arts.