ReportPCF Group
Current Report No. 19/2022: Termination of Collaboration with Take-Two Interactive Software, Inc.
2 pages~3 min full read
Take-Two Interactive Software, Inc. notified PCF Group S.A. on 23 September 2022 of its intent to terminate the July 2020 production-publishing agreement for Project Dagger.
See it on page 1PCF Group retains full intellectual property rights for Project Dagger, as the proposed termination agreement contains no buy-out clause for Take-Two.
See it on page 1PCF Group completed all contractual work and received full remuneration for Project Dagger through the first half of 2022.
See it on page 1The termination agreement includes tiered repayment terms that vary depending on whether PCF Group chooses to self-publish or secure a new publishing partner.
See it on page 1PCF Group intends to continue developing Project Dagger using internal funds, with potential future support from debt financing or a new publishing partner.
See it on page 2Future development costs for Project Dagger will be capitalized as intangible assets under IFRS 38, which will materially impact the group's financial results for the first half of 2022 and subsequent periods.
See it on page 2The report informs that on 23 September 2022 the board of PCF Group S.A. received a letter from Take‑Two Interactive Software, Inc., indicating its intention to terminate the production‑publishing agreement dated 21 July 2020 for the title Project Dagger. The board has reviewed the proposed termination agreement, which includes a favourable modification of settlement terms for the parties. The proposal differentiates repayment amounts based on whether the game will be released via self‑publishing or through a new publisher, and it does not contain any clause suggesting that Take‑Two intends to exercise an intellectual‑property buy‑out option.
During the first half of 2022, PCF Group completed all work specified in the original contract’s schedule and received full contractual remuneration. Despite ongoing negotiations, no new execution agreement has been signed to continue development of Project Dagger. Consequently, the board expects the contract to be terminated under terms essentially matching those in the proposed agreement.
Under International Financial Reporting Standard 38, costs incurred for further development of Project Dagger will be capitalised as intangible assets. This accounting treatment is projected to materially affect the group’s financial results for the first half of 2022 and will continue to influence subsequent reporting periods as development proceeds under a self‑publishing model. The group remains committed to continuing Project Dagger’s development using internal funds, with the possibility of debt financing or partnership with a new publisher. The board will provide additional updates on the termination in accordance with applicable legal requirements.
