What Happened to The Gearbox Entertainment Company?
Gearbox Software, founded in 1999, rose to prominence with its work on the Half-Life series and later achieved massive success with its original intellectual properties like Brothers in Arms and the highly popular Borderlands franchise. After being acquired by Embracer Group in 2021, the company underwent another significant change in 2024 when it was divested to Take-Two Interactive for $460 million, becoming a key studio under the 2K label. As of 2026, Gearbox continues to develop and support its flagship titles, including ongoing content for Borderlands 4.
Quick Answer
Gearbox Software, now operating as The Gearbox Entertainment Company, was acquired by Take-Two Interactive in June 2024 from Embracer Group for $460 million. It now functions as a studio under Take-Two's 2K label, with Randy Pitchford remaining as CEO. The company is actively supporting its latest major release, Borderlands 4, with a detailed content roadmap for 2026, including new story packs and Vault Hunters, and has clarified its policy on AI use in game development.
📊Key Facts
📅Complete Timeline13 events
Gearbox Software Founded
Gearbox Software, L.L.C. was established by five developers, including Randy Pitchford, who previously worked at Rebel Boat Rocker.
Brothers in Arms Series Launched
Gearbox released its first independent game series, Brothers in Arms, on console and mobile devices, establishing its reputation for original IP.
Borderlands Series Commences
The company launched its highly successful Borderlands franchise, which would become its flagship series, selling over 26 million copies by 2015.
Gearbox Publishing Established
Gearbox expanded its business by creating Gearbox Publishing, venturing into the game publishing sector.
The Gearbox Entertainment Company Formed
Gearbox established The Gearbox Entertainment Company, Inc. as a parent company for both Gearbox Software and Gearbox Publishing.
Acquired by Embracer Group
The Gearbox Entertainment Company was wholly acquired by the Swedish conglomerate Embracer Group for an initial $363 million, becoming its seventh major label.
Leadership Restructuring
Randy Pitchford stepped down as president and CEO of Gearbox Software to become CEO and president of The Gearbox Entertainment Company, with Steve Jones taking over as president of Gearbox Software.
Divestment to Take-Two Interactive Announced
Embracer Group announced its agreement to sell Gearbox Entertainment to Take-Two Interactive Software, Inc. for $460 million as part of its restructuring efforts.
Take-Two Acquisition Completed
Take-Two Interactive officially closed the acquisition of Gearbox Entertainment, integrating it as a studio under its 2K label.
Borderlands 4 Release
Borderlands 4 was released, continuing the popular looter-shooter franchise under Take-Two Interactive.
Borderlands 4 2026 Roadmap Shared
Gearbox released an updated roadmap for Borderlands 4's post-launch content throughout 2026, including new bounty packs, raid bosses, and story expansions.
Borderlands 4 DLC Revealed at PAX East
Gearbox showcased the first major expansion for Borderlands 4, 'Mad Ellie and the Vault of the Damned,' and debuted a new playable Vault Hunter, C4SH, at PAX East.
AI Policy Clarified by CEO
Gearbox CEO Randy Pitchford stated that AI would not be used for any customer-facing work at Gearbox studios, following discussions around AI-generated content.
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🔍Deep Dive Analysis
Gearbox Software, L.L.C. was established on February 16, 1999, by five former developers from Rebel Boat Rocker, including Randy Pitchford, who serves as its president and CEO. Initially, Gearbox gained recognition for developing expansions for Valve's Half-Life and porting games to console platforms. The company launched its first independent game series, Brothers in Arms, in 2005, followed by its highly successful Borderlands franchise in 2009, which became a cornerstone of its portfolio.
In 2015, Gearbox expanded its operations by establishing Gearbox Publishing, and by May 2019, it formed The Gearbox Entertainment Company, Inc. as a parent entity for both its development and publishing arms. A significant turning point occurred in April 2021 when Embracer Group acquired The Gearbox Entertainment Company for an initial $363 million, with potential earnouts up to $1.378 billion based on operational targets. During this period, Randy Pitchford transitioned from president and CEO of Gearbox Software to CEO and president of the broader Gearbox Entertainment Company, with Steve Jones taking over as president of Gearbox Software in October 2021.
However, Embracer Group underwent a major restructuring program starting in June 2023 due to a failed investment and a need to reduce net debt and improve profitability. This led to the divestment of several assets, including Gearbox Entertainment. On March 28, 2024, Embracer announced its agreement to sell the majority of Gearbox Entertainment to Take-Two Interactive Software, Inc. for $460 million. The acquisition, which included key studios like Gearbox Software, Gearbox Montreal, and Gearbox Studio Quebec, along with intellectual properties such as Borderlands, Tiny Tina's Wonderlands, Homeworld, Risk of Rain, Brothers in Arms, and Duke Nukem, was officially completed on June 12, 2024.
As of August 29, 2026, The Gearbox Entertainment Company operates as a studio within Take-Two's 2K label, with Randy Pitchford continuing to lead the company. The studio is actively engaged in post-launch support for Borderlands 4, which was released in September 2025. Gearbox has outlined a comprehensive roadmap for Borderlands 4 throughout 2026, including the release of Story Pack 1: 'Mad Ellie and the Vault of the Damned' and a new playable Vault Hunter, C4SH, showcased at PAX East in March 2026. The company also released a major update in Q1 2026 to optimize PC performance and address bugs, with further content like Raid Bosses and Takedown modes planned for Q2 and additional Bounty Packs and a second Story Pack for Q3 2026. In May 2026, CEO Randy Pitchford publicly stated a strict AI policy, assuring that AI would not be used for any customer-facing work.
What If...?
Explore alternate histories. What if The Gearbox Entertainment Company made different choices?