Take-Two Stock Plummets On 'Grand Theft' Delay; Sony, Microsoft May Be Affected

Take-Two Interactive Software's shares plummeted Thursday in AH trading after the company revealed it would be required to delay, by as much as six months, the release of 'Grand Theft Auto [GTA] IV'. The delay, which means the newest GTA will not be out in time for this holiday shopping season, forced Take-Two to lower its guidance and incur a large loss in its current fiscal year, which concludes in October. Take-Two had previously forecast and reaffirmed full year sales of $1.2-1.25 billion and break-even EPS. It now expects full year sales of $950 million to $1 billion and a per-share loss of $1.25-1.35 excluding one-time items. Shares fell 18.69% in after-hours trading on the announcement. Take-Two was expecting to sell 10 million copies of GTA IV in the 12 months following its release. According to Wedbush analyst Michael Pachter, Take-Two will likely have to "fully draw down their $100 million line of credit, and depending on the timing of the revenues from GTA, they may be very low on cash by early next year." GTA IV was slated for release on both Sony's PS3 and Microsoft's Xbox 360. Analysts expressed concern that sales of the gaming consoles could be hurt during the holiday season on the delay of GTA, one of the most popular selling video games of all time. Xbox might be less affected, with the newest version of best-seller Halo being released in October.

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sonarus3918d ago

Neither one of them will be affected. They both have their share of games coming out during that period so no one will be seriously affected. If the game became a timed 360/ps3 exclusive now that would be something

johnnywit3918d ago

Yeah but big franchises like halo, GTA, FF, MGS, is what really push systems. With out GTA both MS and sony take a lose of a AAA game that was positive to sell systems. For instance. I'm not getting my PS3 till FF comes out. I know Ps3 has alot of great games but FF is the game that will sell that system to me. When 360 launched I waited till March to get it with Oblivion. And I might get a wii this winter for Mario and Metroid. Most People will buy a system because of a proven franchise.

eLiNeS3917d ago (Edited 3917d ago )

Sony will be affected but it won't even faze M$. Xbox 360 FTW

s8anicslayer3918d ago

i think this guy reads too much of the wall street journal. anybody on this site own shares of take2/rockstar?

FreedomReign3918d ago

Heads need to roll at R* or else Take 2 is done for. They'll have to liquidate assets, and R* should be first on the block.

Any takers? I hear its a real clusterf*ck over there.

codeazrael3918d ago

So many conflicts of interest as well over there. I wouldnt be surprised if they don't sell. Hmmm, I wonder who wants to buy Take Two???

power0919993918d ago (Edited 3918d ago )

Why are these guys so broke?

What am I not seeing that stands out as "HEY WE HAVE NO MONEY!"?

They have quite a few successful games out there.. I just don't get it.

EDIT: Thanks Freedom.. that answered my questions. :)

FreedomReign3918d ago (Edited 3918d ago )

There's your answer, and that's just the R* division of Take 2.

Edit : The complete story : http://badasscat.blogspot.c...

solidt123918d ago

Alot of people have been waiting to buy a new system until GTA IV came out. They are playing PS2's and Wii's until then since they have good game and the systems are cheaper. GTA and Metal Gear, and Final Fantasy die hard fans will wait to buy next year and probably at a lower price for the console. GTA IV by itself will sell another Million or two Consoles for both systems. These games have the Biggest impact on Console sells. Halo 3 will not have that much of an effect on console sells because most people buying already have 360. You will see a ton of PS3's being sold around income tax time because Killzone 2, MGS4, GTA IV and FFXIII will be coming out . 2008 may be Sony's year. I hope Microsoft comes out with Gears of War 2 in 2008.

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