Pachter: Take-Two is not earning enough money
Even with landmark titles under its belt, Grand Theft Auto, Manhunt, and BioShock aren’t enough to cash in much dough for Take-Two Interactive. “The company doesn’t appear to be able to make much money from its everyday business,” said Wedbush Morgan analyst Michael Pachter.
Pachter pointed at other franchises, particularly “money-losing sports games,” as reasons why he believes Take-Two is not a great investment right now. “Until we see evidence of better controls over work in process and greater diligence in project selection, we are not confident that the company will gain market share in future years,” he said.
Among Pachter’s prophecies were numbers for BioShock‘s sales, which he recently raised to two million from 1.3 million. Manhunt 2, after much delay and controversy, is about to hit the shelves and Pachter expects 500,000 copies sold the day it ships. The analyst also stepped his Take-Two revenue estimate for the fourth fiscal quarter up a bit, from US$ 292 million to US$ 300 million.
That said, Pachter doesn’t think Electronic Arts will be interested in acquiring Take-Two. “EAÂ’s culture is not conducive to open-ended delivery dates, artistic freedom, and incredibly violent games,” he explained. He also claimed that sexual content in Grand Theft Auto: San Andreas and violence Manhunt 2 will not be tolerated by EA.
According to Pachter, Take-Two’s franchises will also be replicas of EA’s games, shooting down the idea of acquisition. Midnight Club is to Need for Speed, while both companies have their own share of sports games. Furthermore, he added, “Take-Two has a very low cash position.”
Via Next Generation
Even with landmark titles under its belt, Grand Theft Auto, Manhunt, and BioShock aren’t enough to cash in much dough for Take-Two Interactive. “The company doesn’t appear to be able to make much money from its everyday business,” said Wedbush Morgan analyst Michael Pachter.
Pachter pointed at other franchises, particularly “money-losing sports games,” as reasons why he believes Take-Two is not a great investment right now. “Until we see evidence of better controls over work in process and greater diligence in project selection, we are not confident that the company will gain market share in future years,” he said.
Among Pachter’s prophecies were numbers for BioShock‘s sales, which he recently raised to two million from 1.3 million. Manhunt 2, after much delay and controversy, is about to hit the shelves and Pachter expects 500,000 copies sold the day it ships. The analyst also stepped his Take-Two revenue estimate for the fourth fiscal quarter up a bit, from US$ 292 million to US$ 300 million.
That said, Pachter doesn’t think Electronic Arts will be interested in acquiring Take-Two. “EAÂ’s culture is not conducive to open-ended delivery dates, artistic freedom, and incredibly violent games,” he explained. He also claimed that sexual content in Grand Theft Auto: San Andreas and violence Manhunt 2 will not be tolerated by EA.
According to Pachter, Take-Two’s franchises will also be replicas of EA’s games, shooting down the idea of acquisition. Midnight Club is to Need for Speed, while both companies have their own share of sports games. Furthermore, he added, “Take-Two has a very low cash position.”
Via Next Generation