Take-Two Claims Virtual Currencies Are Not Real in Effort to Dismiss Lawsuit

Take-Two has made the argument that virtual currencies are fictional in a bid to have a lawsuit against them dismissed. The company filed a motion to dismiss on February 2, 2024, in response to allegations of unlawful business practices related to virtual currencies being non-transferable or refundable once game servers are shut down. According to the motion, the virtual currency is not the player's property, but rather a fictional concept created by game publishers that is subject to the terms of service and user agreements. Take-Two's lawyer stated that the plaintiff's claims of owning virtual currency are baseless and that there is no contract or law that supports the argument that they own the virtual currency sold by the company. The lawyer also pointed to Take-Two's license agreement, which gives the company the right to manage and regulate its virtual currency as it sees fit, unless prohibited by law. The agreement also states that all purchases of virtual currency and goods are final and non-refundable. A hearing on the motion to dismiss is scheduled for March 14, 2024. The lawsuit, which was filed in November, accuses Take-Two and its subsidiary 2K Games of theft and unlawful business practices related to the company's handling of virtual currency in games such as NBA 2K, WWE 2K, and PGA Tour 2K. The plaintiff, a minor, is seeking relief for the removal of in-game currency from a 2K Games account in 2019. Take-Two reported $1.44 billion in net bookings in its latest quarterly financial report, with 75% of that coming from recurrent consumer spending, including virtual currency and in-game purchases.