Take-Two's stock plummets, predicts profit loss

By Justin Mann on December 4, 2009, 6:00 PM
Take-Two is facing financial setback, suffering a 28% drop in share value yesterday after the publisher announced it might not meet profit goals for next year. Outside analysts claimed accountability problems were partially to blame, along with poor performance of some game titles.

Take-Two's reasons differed considerably, blaming weaker consumer spending for the loss in profit. This runs contrary to data from the NPD, which indicated in November that the game industry is doing well overall.

The poor financial outlook isn't a surprise. Take-Two reported a $55.5 million loss in September, citing delayed titles as part of the cause. Will Take-Two manage to recover, or will they be swallowed by a larger publisher down the road?

User Comments: 10

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buttus said:

They will likely be swallowed by Ubisoft or another big publisher. It's surprising how off they were of forcast. I know they were relying too much on the GTA franchise to prop up their numbers.

Captain828 Captain828 said:

No matter by how much they've gone off with their predictions, with the shipload of money they made with GTAIV they should still be in the green.

Yet if they don't want to be swallowed by a larger publisher, they should try to focus on making some new IP as they have the resources available and talented people.

I believe EA was in talks with them at a time before the rls of GTAIV?

UT66 said:

GOOD. this is what happens when you focus on mediocrity ( teh HD!) and ignore the market leader ( Wii) euforia this, oscar caliber story (lol) that, and at the end GTA IV was a huge steaming pile... terrible, boring, pathetic, insipid, lethargic. huge step back for the series, GTA san andreas (PC ) was a substantially better game. Also crapcom and resident evil 5... no wii version?, and then this"proper, next gen HD game" is nothing but a soulless, broken, disjointed, blatant copy of RE4...

Basher said:

Wow UT66, someone broke out the thesaurus.

This is one of few "big name" video game companies that is struggling. The video game industry has proven to be quite resilient to the economy. I guess they decided that putting out lower quality games wasn't very smart. Hopefully they games they release next year will have some essence of the quality of their predecessors.

Chazz said:

I really hope they do better. I am getting rally sick of the two video game giants(EA and activision). They are developers who hate what they are making and the people that they make it for. Why would you build your hotel with steel that you bought from a die hard carpenter?

Timonius Timonius said:

Well they can keep making crap, but it's really the consumers choice (and fault) to buy it. There may be a Fast Food joint around the corner, doesn't mean you have to walk in there every day.

lfg18 said:

After GTA and all the extra content I never thought that Take Two would be in such situation, one would think that smaller producers would face this problem but well nobody is safe. i don't think their are is red numbers after all the money they got from their games but if they are EA or some other big company must be kind of happy,they have their chance to get an extra publisher, and a very good one.

Guest said:

I worked for TT for a month thet are moronz lol

compdata compdata, TechSpot Paladin, said:

Will probably get swallowed up. Their words are just trying to conceal internal issues.

Adhmuz Adhmuz, TechSpot Paladin, said:

Well Activision already tried to buy Take Two before but I quote "Take-Two didn't fulfill our acquisition requirements" so now unless they buy them for a record low I don't see Activision going after them again. That would leave EA and I seriously hope that they don't get hold of Take Two, I enjoyed GTA 4 and still play with friends online just to mess about wrecking havoc.

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