Take-Two Interactive, the financial loser
Surprise, surprise. After analysts warned of a struggle for profits Grand Theft Auto-maker Take-Two Interactive, Take-Two confirms everyone’s money-loss suspicions in its earnings report, with a disappointing 0 projected earnings per share (EPS) for its investors this fiscal year 2007. This break-even guidance of the EPS will also mean a US$ 0.50 loss per share that will be taken by the company.
One analyst puts it bluntly by commenting, “Clearly not an encouraging sign.” Although Take-Two’s flagship franchise, GTA, is expected to make more profits, these potential profits will have to be used to cover other loses made by the company, namely, a loss of US$ 75 million in 2006.
The company claims the next-gen console transition and rising cost of development, as well as a lower-than-expected installed base for new consoles are responsible for its messy financial reports. Another analyst said that while games like Bully did well, the company’s biggest release, GTA: Vice City Stories performed more poorly than expected.
What Take-Two can do to make money, says the analysts, is to stop its Quixotic pursuit of sports dominance and limit its offerings of movie titles. Some of Take-Two’s less optimistic titles include Ghost Rider, The Bigs and All-Pro Football. While the last two might garner good reviews, these may not actually sell well.
Could a miracle happen for Take-Two, or will it finally go bankrupt, a victim of the strict games market competition?
Via Gamasutra
Surprise, surprise. After analysts warned of a struggle for profits Grand Theft Auto-maker Take-Two Interactive, Take-Two confirms everyone’s money-loss suspicions in its earnings report, with a disappointing 0 projected earnings per share (EPS) for its investors this fiscal year 2007. This break-even guidance of the EPS will also mean a US$ 0.50 loss per share that will be taken by the company.
One analyst puts it bluntly by commenting, “Clearly not an encouraging sign.” Although Take-Two’s flagship franchise, GTA, is expected to make more profits, these potential profits will have to be used to cover other loses made by the company, namely, a loss of US$ 75 million in 2006.
The company claims the next-gen console transition and rising cost of development, as well as a lower-than-expected installed base for new consoles are responsible for its messy financial reports. Another analyst said that while games like Bully did well, the company’s biggest release, GTA: Vice City Stories performed more poorly than expected.
What Take-Two can do to make money, says the analysts, is to stop its Quixotic pursuit of sports dominance and limit its offerings of movie titles. Some of Take-Two’s less optimistic titles include Ghost Rider, The Bigs and All-Pro Football. While the last two might garner good reviews, these may not actually sell well.
Could a miracle happen for Take-Two, or will it finally go bankrupt, a victim of the strict games market competition?
Via Gamasutra
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