Publisher sees earnings slump to $138.6 million, compared to GTAIV-fueled gangbusters revenues during the same period in 2008; BioShock 2, Mafia II, Red Dead Redemption, Max Payne 3 due after Jan. 31.
Last week, Electronic Entertainment Design and Research analyst Jesse Divnich offered an upbeat perspective on the state of Take-Two Interactive, saying that the high-profile publisher's money-making potential is "grossly underestimated" over the next couple of years. And while new BioShock, Mafia, Borderlands, and Max Payne games may provide a lift in the future, the publisher's third quarter financial report indicates Take-Two is still heavily reliant on its Grand Theft Auto franchise.
Reporting on the three-month period ended July 31 today, Take-Two said that revenue reached $138.6 million, nearly $10 million shy of company projections issued in May. The figure compares poorly to the same period of time last year, when Take-Two's revenues surged to $433.8 million on the strength of Grand Theft Auto IV's record-setting launch.
Take-Two also posted a $55.5 million net loss for the period, compared to a $51.8 million profit it turned during the period last year. Indeed, Take-Two continues to reap dividends from Rockstar Games' heralded action adventure, as GTAIV along with The Bigs 2 and Major League Baseball 2K9, led third-quarter sales, the publisher said.
Though key titles, such as BioShock 2, Mafia II, and Red Dead Redemption, were bumped into its 2010 fiscal year--which runs November 1, 2009, through October 31, 2010--Take-Two still has a number of potential hits on tap this year, primarily from its Rockstar Games subsidiary. In September, Rockstar will debut Beaterator on the PSP and iPhone, while October will see the release of GTAIV: The Ballad of Gay Tony and Episodes from Liberty City on the Xbox 360 and GTA: Chinatown Wars for the PSP and iPhone.
Take-Two is holding its quarterly conference call with investors this afternoon. This story will be updated with details as appropriate.
In a post-earnings conference call, Take-Two CEO Ben Feder offered an update on the release status of BioShock 2, Mafia II, Max Payne 3, and Red Dead Redemption, saying that none of the titles are expected to launch before January 31, 2010.
"We are continuing to evaluate the optimal release window for these titles and still plan to release all four titles in the first half of calendar 2010," he said. "At this point, we don't expect any of these titles to launch within our first fiscal quarter ending January 31, 2010."
I only have this to say - Shoulda let the PS3 in on the GTAIV DLC. You woulda had my money, at least, for each. I just wanna help! Ha...
I don't see any blockbusters in their roster for release next year. That, combined with the recession, would make me inclined to put a "sell" on their stock - if I owned any.
stupid T2 marketing... that's what happens when you continously delay all your games... you end up earning but not too much...
unless u can keep banging out quality games all the time,ur profit will dive,cant have it good all the time.
Blizzard is smart someone said if they do this it is like they are getting to print money. Take 2 is stupid they could be printing money to. Imagine having to protect the godfather working your way up in the family by stealing and selling and offering your service to the rich who need protection. They might have 9,000,000 people giving them 15 a month if they could wise up a little.
mutual-assassin: It is not pointless to investors, and I doubt anyone other than investors would care about the company's profit/loss anyway. Just because they didn't release a big game this summer does not mean that a comparison to last year is pointless.
Take Two seem more interested in releasing games and DLC when it fits a suitable financial quarter rather than any consideration for the gamers it is meant for. Surely the GTAIV DLC packs should both have been out many months ago, not dragging it out like this.
True... I agree with you UnknownForm... if you hold off on a release date, then push it back, then when that time comes again, you create the expectation for it to keep happening. Even if not that, people get tired of waiting and will just settle for something else.
Maybe,if they released all the games that were delayed,on time,then they wouldn't of lost millions of dollar's for this year,but I'm pretty sure that they will earn back some money after the delayed games are released.
could it all be due to people who hack their box for 20 or 50 bucks then download the games for free? hmm...
Maybe they need to get a small clue.... here is the roadmap... A) Exclusive Contracts should NEVER exclude the PC platform. That is just FLAT stupid. GTA V should be released PC first... then Xbox and PS3... All add-ons... available PC first. The PC is the largest installed gaming base. Lauching games exclusive to Xbox or PS3 or both... just limits sales. B) The DS is not for MATURE games. Don't waste time effort or money developing MATURE games for the DS or the Wii. Cartoonish, Family games great... those will sell like crazy on those platforms. If you want to make a GTA for a handheld.. PSP. PERIOD. Make the best one you can for it.
Kenji_Masamune - "they really need to reword these things. a 55 million loss is you lost 55 million, not you didn't earn and additional 55 million." The article is worded correctly. Take Two brought in $138.6 million in revenue and spent $194.1 million to have a NET LOSS of $55.5 million for the quarter. And while they may be able to make that up in 2010, it should be at least a little disturbing to investors that they lost more money in this quarter than they made during the quarter of GTA IV's launch, and they have not released anything major since then. That means that in the last quarter alone, they lost every bit of money that they made from GTA IV's launch and then some. I don't know what their net gain/loss was for the previous quarter, but considering that was also a slow time of year with no releases, they probably lost money then too. I just don't know if they lost enough in the last quarter to completely offset their gains from the holiday season.
Maybe Take-Two paid Cnet to do all of these articles here on Gamespot in a row as an advertisement for the new R* game coming out, The Ballad of Gay Tony? Getting people to think about Take Two, R*, and this game?
oh yeah i just wanted to comment on what Viral-venom13 said you have some good points but i think exclusives games for a console can be a good thing as it gets players interested in a console they might not have got if not for that game because if metal gear solid 4 had come out for 360 as well i would never had brought a ps3 because metal gear was the reason why i brought a ps3 and if it wasn't exclusive to the ps3 then i probably never would've brought a ps3 as most ps3 games come out on the 360 as well
the fact is take two are still very reliant on rockstar to make most of their money (gta being the main source) and because top games like bioshock, mafia 2 and others are delayed til next year take two i think might struggle to fend off another takeover bid from ea or one of the other companies if it happens but it depends on what happens in the next few months
I'm not really sure what the big deal is here. They haven't released anything worth playing since GTA IV... and we're in a recession so naturally the sales numbers will be down. But, this is only for one quarter... it's not like they've taken a loss on the year.
Maby if they made a few more games than they do. Grand Theft Auto cannot carry them alone. It is not good to lean on one franchise so heavily. Honestly for me the only game they make that I am looking forward to is Bioshock 2. System Shock 3 would be awesome though.
sanechupp A lot had to be taken out of the game and downgraded Because of Space Restrictions , we might have had a game a bit closer to SA But your right they need to go back to that style, SA Was One of the Best games ive ever played, kept me playing for 2 years :D
@guitarist1980 ahh yes your right I forgot about Borderlands for some reason. October just got a little more interesting.
With GTA IV TBoGT,Mafia II,Bioshock 2 and RDR Take Two could get this $50 million back quicker then selling hot cakes =-P
They will make it back with g@y tony sales for sure. With that expansion expected to be the best of the three, it will bring in the necessary funds. Lets hope this to be true! Either way, if sales continue to drop, they have four titles hitting before summer 2010 that will take them over the top. GTA V before christmas 2010 anyone? I wish.
no worries, take-two will get back on track, they always give us good quality games, i will be getting mafia 2 for sure
The game delays are definitely contributing to this but in regards to their reliance on GTA IV, the major thing i see hurting them is exclusivity. Due to that deal with Microsoft, the Sony crowd are excluded from those extra episodes and even though the install user base on that side isn't as big as Microsofts' it still could have made a MAJOR difference in the earnings but knowing them, eventually they'll bring the exclusive contents over so, that should do something. It was the multi-platform release of GTA IV along with the hype for the game and how it looked that set the selling records of the game so high and well once exclusivity sets in, well, that once high pillar just takes a slicing here and a dicing there. If you ask me, in the times of today and how the market is and game budgets, i feel NO 3rd party developer should revert to exclusivity as it hurts the company's earnings and well hurts gamers who have one system and not the other and don't intend on getting another anytime soon!!
well this is what happens when you go through a drought in game releases. no company is safe. now next year when the market is flooded with games stick will pick up a little.
well at least they ant rushing there game because a rushed game is usually a dumb game and people expect alot from these games take ya time best get it right or u will find ya money problems continue
I am afraid some more companies may experience the same fate that has been dealt to a good video game company. Maybe not blizzard with their cash cow.....
i like how Bioshock 2, Max Payne 3, and Borderlands "MIGHT" help out.....are you kidding? its gonna double all together what GTA did!
GTA still a major player on Take-Two. It's too bad, considering how wonderful Bioshock 2 and Mafia 2 will be. Not that i don't like GTA, GTA IV is incredibly awesome, but Bioshock and Mafia should have the same appreciation and contribution on Take-Two bank's account
it's true that titles such as GTA IV, Halo 3 and fable 2 were extremely hyped up, they were the game you wanted to play the moment it hit the shelves, so for about 6-8 months it was the highest in demand games on the market, but once it was done and dusted no-one would touch it and the next craze came allong like fallout 3, so less demand and more supply will result in cheaper prices. the highest grosing games are the ones where everyone wants to be the first to play it. I GUARANTEE THAT BIOSHOCK 2 WILL BE A MEGA SELLER ITS BECAUSE OF HIPE! you gotta love it
I got bored of GTA IV a few months in and missed the DLC. And by missed I mean I didn't miss it much. Traded it in for another game while it still had value. So I guess my point is that they might not make so much money on DLC. Considering there are MANY used copies at most any Gamestop nowadays. Too many.
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