Publisher suffers from GTAIV-less 12-month period as sales slip to $968 million, Q4 gap wider than expected; Spec Ops due before November 2011.
Take-Two gave investors anything but cause for holiday cheer earlier this month when it substantially scaled back its earnings estimates for its fiscal fourth quarter. Thanks largely to a massive shortfall created by its Major League Baseball licensing deal, Take-Two trimmed $25 million from its fourth-quarter sales projections and cut earnings per share guidance by $0.25. Investors responded immediately, as Take-Two's stock subsequently shed 30 percent of its value.
With investors and analysts thus braced, Take-Two today officially announced its results for the fiscal year and fourth quarter ended October 31. Total fiscal-year revenue amounted to $968 million, a far cry from 2008's $1.54 billion haul, which included the record-setting launch of Grand Theft Auto IV. Take-Two also reported a $137.9 million net loss during the period ($1.80 per share), a dramatic reversal from the year-ago period's $97.1 million profit.
Take-Two's fourth-quarter sales actually rose from last year, though they came in lower than even the publisher's updated projection of $350 million to $375 million. During the August-October period, sales were $343 million, up 6 percent from the $323 million generated during the same months a year ago. Losses increased during the quarter, however, as the publisher reported a deficit of $22 million, or $0.28 per share, compared to $15 million a year ago.
Take-Two has previously indicated that Gearbox Software's well-received new franchise, Borderlands, may see a follow-up. Today, the publisher affirmed the game's success, saying it has sold 2 million units worldwide since its late-October launch. Other top performers during the period included NBA 2K10, Grand Theft Auto: Episodes from Liberty City, Grand Theft Auto: The Ballad of Gay Tony, and Grand Theft Auto IV.
The publisher also provided a narrowed release window for Spec Ops: The Line, its recently announced third-person tactical military shooter. Take-Two expects to release the Yager-developed game later rather than sooner, as the Xbox 360, PlayStation 3, and PC title is now slated for the publisher's fiscal year ending October 31, 2011.
As previously announced, Take-Two continues to expect its MLB business to weigh heavily on its current fiscal-year results, with earnings expected to fall in between $1.0 billion and $1.2 billion for the period ending October 31, 2010. Still, Take-Two expects to release a number of anticipated titles during its current fiscal year. These titles include BioShock 2 on February 9 and Red Dead Redemption on April 27, as well as Mafia II and Max Payne 3 later in the year.
I'm looking forward to borderlands 2 (hopefully a name a little more creative than that). They could really add to the character customization and add more action skills. I'm wondering how they're going to change the gun AI, though.
Mafia release dates need to be moved to every 3 years. every 5 or 6 years is to long for development. In 1993 I Bltc#ed out Take Two on Prodigy bulletin boards for a game called Hell. It took to long to develop and wasn't that good. Then they made me wait 5 Years for the first Mafia pc game. That's when I thought, this game is great and worth the wait maybe they know what there doing. At the time not knowing I was going to have to wait 6 more years for Mafia 2. And I still want a Sid Meier's Mafia game.
@ captainkill001 "...pretty well known for buying into a company and trying to illicit change..." elicit, which is to draw out, vice illicit, which implies that something is illegal or immoral. other than that, decent comment. maybe.
I really think Borderlands is the sleeper hit of 2009. Other than the story, which kind of just goes away after the first part of the game, it is a great game. If they had developed the story a bit more and improved the ending, the game could really have been Game of the Year for 2009. Glad to know there will be another one.
They would have made borderland 2 after it sold an million copies though not perfect extremely enjoyable I think the humour helps a lot.I'm sick of saving the world from terrorist.
I'm betting Icahn getting involved may shake things up a bit. He's pretty well known for buying into a company and trying to illicit change to make a profit on his shares. And Take-two makes quality games, I dont think they're in trouble. I actually respect the fact they will delay a game to polish it more. I just hope it doesn't catch up to them and sink em. I love Borderlands and I'm pumped, I mean super pumped for both Max Payne 3 and Red Dead Redemption!
no cause for concern here... when they need another $500 million they will release another GTA game.
Borderlands for me was an 'under the radar hit', really good fun. NINE TOES "and hes got 3 balls" LOL
Im so happy for Borderlands... that game is pretty awesome but he hasnt recieved enough publicity = / is a great game to be between GOTY but w/o publicity we cant expect too much... Spec Ops looks promissing but he has to have something special if he wants to compete with CoD and the new MoH... BioShock 2, Mafia II and Max Paine 3 are going to give a big push to Take - Two... the next year are going to be a pretty interesting year for gaming and for the industry =D
cool trailer, and I really like that they used a... dark sounding Bjork song, don't know what it's called though =(
@meateater79, I think you may be surprised about Bioshock 2 sales. In fact I am not sure where the next 5 million selling multiformat game (let alone a 3 million selling single machine game!) is going to come from in 2010, givn th sales in 2008 and 2009 of most AAA titles. You have to remember, over the long term, gamers get all the big hits, but some are bought a year later on budget or ebay. Most people couldn't afford every game all at the same time. That means if 6 AAA titles are released in February only two are even going to stand a chance of those 3-5 million sales.
i already switched , gta iv is a big let down , , what rockstar were you trying to be as good as driver paralel lines with this bull s''t and saints row is better ,,, planes bikes buses etc , , all rockstar gives us is parachutes and helcopters that drive like really big buses lol even my xbl friend stopped playing it , cause it was so stupid ,
This better not get int the way of a Borderlands sequel. Borderlands was the most fun ive had with a game for some time.
I blame SecuRom. Seriously. Borderlands is GOTY, despite its snub. Seriously. How much are companies paying per word for posting positive things about them online these days? I could use a little extra cash and I've always wanted to be a shill as I think I'd be good at it.
@Humorguy_basic That's very true. As nice as Borderlands look, those numbers definitely do not constitute 'a hit'. But BioShock 2 and Red Dead Redemption (IMO) should definitely turn Take-Two's fortune around.
Anything over a million sales and the media will allow publishers to say it's a big hit, and the media will repeat that editorially so gamers believe games are hits (why I am not too sure, maybe if you are an optimistic gamer you are a gamer who buys more games?!) The fact is, a title on three machines (PC, 360, PS3) is only a hit and a profit maker when 3-5 million sales have been made. STALKER selling 4 million on PC alone is a hit. Halo selling 4 million on 360 only is a hit. 2 million for Borderlands across console and PC is not a hit or profit making title. Hence the losses and sales decline. Most gamers won't read this article or these messages, and they will continue to believe Borderlands was a big hit. they will be wrong, but that's the way the market works.
Take-Two will be back on top in no time. Grand Theft Auto is a really fun game series, and the downloadabe expansions for the Xbox 360 version of Grand Theft Auto 4 are awesome. I have noticed that a lot of people don't realize that the new Grand Theft Auto disc released for the Xbox 360--which includes both GTA4 Expansions--does not require you to own GTA4 in order for you to play that new disc. Even if you did not own Grand Theft Auto 4, you can still buy the new disc and play the expansions; that is how huge those expansions are. For $50 Million Microsoft essentially bought an exclusive Grand Theft Auto game. The game only costs $39, and it has been on sale for $29, so if you are a fan of Grand Theft Auto I recommend you check it out. I thought it was a lot of fun for a great price. This is useful information to people who own both an Xbox 360 and a PS3, but ended up buying the PS3 version of GTA 4. Some people in that scenario think they can't play the Expansions, since they don't own the game on Xbox 360. That is why the disc was released; you an buy it for your Xbox 360 and play those expansions, even if you don't own the original GTA4 game.
This is the media trying to make a mountain out of a mole hill. Of course their sales are going to be less considering they don't have G.T.A. Just like Bungie's sales of Halo wars was less then the halo series or how EA's sales are less then MAddens and blah blah blah. That's the market, any moron trying to determine the fate of company based on that type of logic is destine to fail regardless of what happens with any company.
@tarugista Dunno about you, but I was born in the NES era, as well as owning one, and I still think Borderlands is awesome.
borderlands was good?????? for noobs. but for gamers born in the NES era..its sh#tt. wake up people...where entering 2010..and we are still playing the same gameplay over and over...with just better graphics. IF we consumers change,,,,then will, the developers....noobs are the reason why we are all caught in this mess in the 1st place.
@inaka_rob you just did what i couldn't... you described exactly how i feel about gta4... it was a good game but nowhere near as good as everyone said... especially the cars! they looked pretty awesome but it sucked drivin them... they seemed just so slow an clunky :(
i seem to like sitting on my front porch shooting skags.... despite the SERIOUS need for another patch or two (fix the shadows dammit). until then i will sit here n shoot skags like a yokel does the various wildlife that comes and messes with his grain fields. and possibly buy a few new guns from a vending machine while I'm here.
@SunDestroyeur its called 2k because take two bought visual concepts(who made the 2k sports series for the dreamcast) so now any studio which is bought or take two absorbs into 2k games keeps it. they keep the title 2k games as a form of honor or remembrance of where they began. make sense?
@ inaka_rob The Infernus was pretty sick. You gotta love running people over in a car that resembles a Lamborghini Murcielago
Take-Two has alot of talent, but obviously they have no management. I would not touch their stock with a 10 foot poll.
"games being made JUST to make money.... instead of making games FUN and having money as a BYPRODUCT..." You don't have the slightest understanding of economics, do you?
"I really will never understand why a shallow game like Borderlands sells 2 million." Because if you have friends it's fun.
"I really will never understand why a shallow game like Borderlands sells 2 million." -Dahaka-UK because the younger generation of players dont know when they are being ripped off... very little motivation or story behind anything you do in this game...story seems like an afterthought I personally thought the game was unfinished could of been alot better with just a lil bit more work...the world is bland, i realize its a rock planet, but even Fallout had more variation in texture/pallete/scheme and it was set in a city not a whole WORLD... bland multiplayer...sometimes you want to shoot the Rtards your with. the best part in this game is claptrap clips released prior to its release... The thing seems like a regurgitated Diablo with guns limited stats/specs/items or depth... and it sold!...lol amazing... im reminded of an old saying about salesmen: "being able to sell a fridge to an eskimo" well it applies aptly here in contrast Left 4 Dead part 1.... had what 4 small maps and was far more fun to play... innovation and design go a long way to supplament pretty graphics
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