Take-Two sales sink 12% in June quarter

Publisher posts $8.7 million loss on revenues of $334.4 million in April-June period; Red Dead Redemption franchise sells 11 million.

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Take-Two did not solve the case of sinking sales in its latest quarter. Despite strong sales of L.A. Noire, the New York City-based company today reported its first-quarter 2012 financial results, saying that in the April-June period the publisher posted a 12 percent revenue dip.

Take-Two predicted a revenue drop for the quarter, and that's just what it got.
Take-Two predicted a revenue drop for the quarter, and that's just what it got.

Net revenues for the quarter came in at an expected $334.4 million, down from the $375.4 million it posted a year ago. The company also reversed last year's profit during the quarter, posting an $8.7 million loss for the period. This marks a sharp decrease from the $27.4 million in profit Take-Two made during the period a year ago.

In a postearnings call this afternoon, Take-Two chairman and CEO Strauss Zelnick elaborated on sales of individual titles. He said the "Red Dead Redemption franchise" has sold to retailers 11 million units. This figure includes sales of the stand-alone Undead Nightmare disc, which went on sale at retail last November, but not digitally distributed copies of the game.

As for the zombie add-on, Zelnick said the Undead Nightmare pack has sold in 2 million units at retail. He did not reveal how many copies of the add-on were sold through Xbox Live and the PlayStation Network. Zelnick also touted sales of NBA 2K11, saying the basketball sim has sold 5.5 million units to retailers during the quarter.

Last week, Gearbox Software officially announced Borderlands 2, which Take-Two will publish. Now it appears that the "no-brainer" sequel was just that. Zelnick confirmed during the call that the original Borderlands has sold 4.5 million units since its debut in 2009.

The company's sales sheet did see a burgeoning sector, however. Digitally delivered content accounted for $24.6 million in revenue during the quarter, marking a steep 49 percent increase from the year prior. Take-Two attributed this uptick to digital sales of Red Dead Redemption, Borderlands, the Grand Theft Auto franchise, Duke Nukem Forever, the Sid Meier’s Civilization franchise, and L.A. Noire.

Of note, Take-Two projected profits for its April 2012-March 2013 fiscal year to come in at $2.00 earnings per share. This guidance is well above the $0.10 to $0.35 EPS Take-Two expects to hit during its in-progress fiscal year, and it led one analyst to ask during Take-Two's postearnings call whether it can be assumed, given the EPS expectation, that a new Grand Theft Auto will arrive during the quarter.

Unfortunately, the executives did not take the bait, with Zelnick saying only that the publisher has a number of high-profile releases scheduled during the year and that Take-Two does not expect to be hampered by its MLB exclusivity contract. These titles include Borderlands 2, Spec Ops: The Line, and BioShock Infinite. During the fiscal year in which Red Dead Redemption was released, Take-Two posted EPS of $1.02 per share.

Take-Two said it expects revenues to come in at $1 billion to $1.1 billion for its in-progress fiscal year ending March 31, 2012.

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Peter23CU

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I agree with you KrazzyDJ, they should release this game onto the PC sooner because we all want it for the PC and RockStar would make more profit. Come on now release for the PC ;)

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ayusheus

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<< LINK REMOVED >> not trying to be a snob or anything. but people still buy games to play on the PC???

xbox these days costs only $129.. or is coming free with most computers.

dont get me wrong, i was a avid PC gamer of ALL types.. but since i bought xbox360, i can only imagine games like World of warcraft, civilization being played on a PC.

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bryjoered2007

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<< LINK REMOVED >><< LINK REMOVED >>

Yes, people still buy games for the PC. The fact of the matter is almost every game can be played with a 360 controller and even games that are terrible ports still normally look better than their console conterparts normally for $50 dollars instead of $60. PC cost more to keep on the cutting edge, but in all reality you can get a graphics card for about the same price as an xbox 360, that has graphics capabilities that are about 5 times.

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MikeNelson247

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GTA and Red dead redemption are the most successful projects, so they should take more attempts to release those games sooner. And please set GTA in the modern world, not 80's 90's whatsoever.

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KrazzyDJ

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Had Red Dead Redemption released for the PC, Take Two would have reported an $8.7 million profit instead of a loss !!!

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vicsrealms

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Here's an idea Rockstar. Red Dead Redemption would look absolutely amazing on the PC. Also, I would like to see information on the next Borderlands and GTA.

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warhawk-geeby

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@geoff-uk123 They should totally go back to Vice City. Los Santos will be good yeah, but if they were to set another Grand Theft Auto game in Vice City in the 80's it would be superb. The beaches, the night-clubs, the cars, the neons.. and most importantly the music. Out of all of the locations Vice City has the most character. That said though I hope that after Los Santos they go somewhere completely new - I want to see somewhere like Rio de Janeiro. Have to wait and see!

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dlM0kn

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Maybe Take-Two wouldn't have gotten such a bad decline in profits if they had RELEASED RED DEAD REDEMPTION FOR PC! Just my thought.

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GamerLegend10

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take two is brilliant, they have some of the best games...so i hope they do well.

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Bigbudd0045

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Take2 publishes Red Dead, Civ, and Borderlands....might now be my favorite publisher (for now).

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PhilRiker

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Buy Take two stock now when its low, sell when its high when next GTA comes out.

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sorcererxx12

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from 300M to 1 billion ... did they just announce GTA 5? :)

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sorcererxx12

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[This message was deleted at the request of the original poster]

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wizika

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What's stopping them from selling at least a few million copies of RDR PC port? MAKE IT HAPPEN, TAKE MY MONEY ROCKSTAR! (I already bought it for XBOX360, but multiplayer with a controller is quite horrible)

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istyke

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I have a PC and i will always have( always the last generation/high end). I dont have ps3 or xbox and i will never have. They are outdated and they hardware is ageing fast. I look for quality looking gameing and not for bulky textures on ps3 or xbox's. I bought all GTA's until now which have appeared on PC, but I wont buy ps2 or xbox ever, that is 200% sure. This is not an offence to ps3 ors xbox, i'm just stating that i will never buy those hardwares. If they dont port games to PC's that is Take Two-s loss, there are many high name games on the PC which they can fill me up without Take Two's games. Is their loss not porting games to PC, not mine....

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gatsbythepig

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The Dow has fallen over 200 points. This is not surprising.

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Rocker6

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I say this on every RDR related article,and I will say it again! PLEASE PORT RDR TO PC,ROCKSTAR!!!

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deactivated-5940fed791b8c

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@warhawk-geeby: That sounds cool. I'd like to see it set in San Andreas again, or Vice City even. Liberty City has been used enough in my opinion.

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Corelis

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@DennisWZH, 334mil was a Quarterly figure... 1-1.1BIL was for the year (4 Qtrs). I'm just clarifying not being mr. smarty a*s.

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DennisWZH

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from 334 million to 1 bil? lets see if they can walk the walk.

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warhawk-geeby

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@geoff-uk123 From one Geoff to another.. They are working on it mate, they announced they'd started voice recordings for it a couple of months ago. It's being set in Los Santos - think San Andreas again. Gangta's, Guns and Ho's. If it anything like as good as Red Dead Redemption they'll be on to a winner.

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AtlanticRock

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Take-Two didn't put out any real big games this year(DNF didn't shake the market up, sorry), so this is hardly any news. Once Max Payne 3, Borderlands 2, Bioshock Infinite, GTA V, and Red Dead Redemption: Game of the Year Edition come out their sales and stock will sky rocket. And you can take that to the bank.

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Badboy2008s

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how abt making a pc version for gtav

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deactivated-5940fed791b8c

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Maybe they should get working on a new Grand Theft Auto game. People have been wanting that for some time now, so I'm sure it would sell good.

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dab0ne

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Well they did dip in sales but that doesn't mean they have taken a loss. I'm sure all the expenses on all the games they have published recently have seen nothing but profit. Not every company can boast at having released four games in 1.5 years (Red Dead, Undead Nigthmare, NBA, and LA Noire) that were multi million copy sellers. No, I'm sure take 2 will be just fine. Their current games are starting to dwindle a bit but once GTA5 and Borderlands 2 come out they will be sitting on crazy profits all over again.

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syam32245340

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it's time for a new game :)

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LordRaymond

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Bioshock Infinite!

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La_Rhonda

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They need to bring back the Midnight Club series! Anyway, they'll be back up once GTA and the other big hits drop.

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Mortos13

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Oh noez! Pfft, I could care less about Take-Two. Never liked them anyways.

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LOXO7

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I hope the next RDR involves the American Indians a whole lot more.

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Tsuchikage

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"Read Dead Redemption franchise," huh? One game (and an expansion pack) don't constitute a franchise. If Mr. Zelnick had said simply the "Read Dead franchise" (which would include the original game, Read Dead Revolver) then the quote would make sense.

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plaintomato

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Well, that will inflate the percentage jump for next year won't it. Their stock did drop today though. Oh wait. Everything did. Look at that, Take Two announces a bad quarter and the market crashes. Cause and effect...unless maybe something else was at work in the markets? Must've been that you can't "follow" Borderlands 2 yet on GS. Maybe that crashed the market.

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jackeris

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All of RDR except Undead Nightmare should really have been for free. F U rockstar for making us fans pay to play. the entire experience from game to content would have costed you over a hundred dollars. its no wonder why they're sales are lack. they feedings us with a teaspoon and coffee straw.

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Barighm

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I don't know why Take Two is always walking a fine line with their finances, but whatever they're doing, it allows them to consistently release great games and I hope they keep doing it. And give them a break regarding Duke Nuke'em. They didn't develop the game, they just took the heaping pile of crap 3D Realms served to them and tried to polish it. Garbage in, garbage out, right? We all know the next Duke game, developed entirely by Gearbox, will be a lot better.

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redskinStu

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GTA4's story sucked. They need to go back to the source material, the gangster movies. That Russian stuff was just bad. Just bad.

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amr_5m

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its time to release it for PC :)

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FarmFreshDX

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@Brazucass: If there was enough money in it, they'd surely release RDR for PC. Companies never do things on the basis that they have "enough" money. I don't see RDR doing well at all on PC, if only because it was built for consoles and the aiming and firing just wouldn't be as gratifying without the quick control stick taps and such. RDR definitely deserves every copy it's sold. I've never had more fun with a multiplayer game as I have playing with three buddies.

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vadicta

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I can't help but feel a little satisfied knowing that the Duke couldn't carry them.

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benboz

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We want GTA 5!!!

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CrimsonCorp

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C'mon.... it's time for GTA to rock this industry again. Despite its aging graphics, I just replayed San Andreas, and goodness was it fun... wonderful story and characters (unlike the majority of GTA4's)

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Brazucass

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Rockstar could sell another 5 million copies if they released RDR for PC, but they are too lazy for it and dont need the money.

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KaBo0m

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This is what happens when you don't make any games for a year. LA Noire is a TEAM BONDI game not a rockstar game. Either give us a proper sequel to RDR(not a small expansion) or a new GTA. Until you actually release some games made by ROCKSTAR your sales will keep going down

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DAMSOG

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1 Billion?....those second hand game sales are really hurting the industry......We are just markets to these people, figures to be counted and shareholders to be paid...and pockets to be gouged.

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jlm2k5

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10th!!!!!!! how ya like me now haters!!!!!!! oh, and also Take Two rocks....just saying

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Stonecutters908

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I don't understand why this is news. What tent pole releases has Take Two had this year? Of course their sales have dropped. It is pointless to even report it.

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Snaptrap

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Hopefully they don't see this as a reason to use a horrible form of DRM if they don't use one already.

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sladakrobot

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Why not bring out finally the RDR-Ultimate-Complete-Edition out? Ill buy it. Looking forward for Borderlands 2...i had a great time with BL1.

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snake2215449

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I am such a big fan of games published by Take Two(Except for Duke Nukem Forever). Rockstar probably makes the best games in the business like GTA and Red Dead Redemption and delivers quality DLC for a low price as well. I don't see why they have had issues with sales but I'm pretty sure it was because of Duke Nukem Forever.

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