Analyst skeptical that GTA IV is “panacea” for Take-Two’s woes
Publisher and developer Take-Two Interactive already seems ready to usher in the new year with a bang with their slated release of Grand Theft Auto IV (Playstation 3, Xbox 360) in spring of 2008. But before the title blazes its way into store shelves, analyst Micheal Pachter has raised the proverbial red flag on the whole issue and expressed skepticism on just how successful Grand Theft Auto IV‘s release will be. More details on the reasons why at the full article.
With improved financial results exclaiming their success for 2007, publisher and developer Take-Two Interactive seems confident to usher in the new year with even more profits, especially with their top-grossing Grand Theft Auto series. Wedbush Morgan Securities Analyst Micheal Pachter is skeptical that Grand Theft Auto IV (PlayStation 3, Xbox 360) will be the solution to all of Take-Two’s management and fiscal woes.
Why such skepticism over GTA IV? Pachter stresses that the new management, though “sincere,” is well, new. Considering this,Take-Two may not be able to deliver what is needed in order for GTA IV to succeed since the company hasn’t exactly handled a task of this magnitude. Pachter also points out that the lack of needed staff reductions to serve as damage control over the lack-luster sales of All-Pro Football 2K8 (Playstation 3, Xbox 360).
He added that “the company intends to grow its staff to facilitate growth of the business, but we donÂ’t see its revenues growing fast enough to offset the considerable losses it continues to generate from its core business.”
Given that Take-Two is banking on the successful release of GTA IV come spring next year, Pachter feels that the company may have to consider other means to counteract this years losses.
Buy: [Grand Theft Auto IV (Xbox 360)]
Buy: [Grand Theft Auto IV (PS3)]