Take-Two reports profit, reenlists GTA creators for new IP
Record $1.5 billion annual revenue yields $97 million in net income, but Q4 loss doubles; Rockstar cofounders Sam and Dan Houser staying put through 2012, working on mystery game--and new studio.
Seven and a half months after Grand Theft Auto IV began its record-breaking retail run, its publisher has reported its annual earnings. For the fiscal year ending October 31, Take-Two Interactive sales were a massive $1.538 billion, way up from the prior year's $981.8 million. Net income--aka profit--was $97 million, a large step above the $138.4 million net loss the New York-based publisher reported the year prior.
Despite the healthy annual finances, Take-Two's fiscal fourth-quarter revenues were anemic. Though there was a year-over-year jump in sales from $292.6 million to $323.4 million during the August-October period, the company's loss more than doubled to $15.0 million. In a statement, Take-Two blamed the larger-than-expected loss on $4.5 million in "business reorganization costs" and $1.5 million in "professional fees and expenses related to unusual legal matters." That last figure is almost certainly yet another bill for the defense mounted against Electronic Arts' attempt to acquire Take-Two, which fizzled out in September after seven months of extended deadlines.
The August-October quarter also saw Take-Two incur $4.8 million in "stock-based compensation expenses." This figure likely was related to the publisher's other major announcement of the day, a deal to keep key figures in the upper echelons of GTAIV developer Rockstar Games in place until January 31, 2012. The names included cofounder and executive producer Sam Houser, fellow cofounder and vice president of creative Dan Houser (Sam's brother), and GTAIV producer Leslie Benzies. Other, unnamed Rockstar personnel were also covered under the deal.
As part of the re-up agreement, Take-Two also "agreed to fund the future development of certain new intellectual property to be owned by a newly formed company controlled by key Rockstar Games team members." Given its role as financier, Take-Two will publish the unnamed game, which may or may not be the mystery PlayStation 3-exclusive project announced in July 2007.
Rockstar recently announced the February 17 release date for Grand Theft Auto IV: The Lost and Damned, the first of two episodes only available for download on the Xbox 360. The first GTA game for the DS, Grand Theft Auto: Chinatown Wars, ships on March 17--St. Patrick's Day--in North America.
While Take-Two's slate may pay off in the long term, in the short term shareholders are skeptical. The company's stock sank like a stone in after-hours trading and had fallen 18.39 percent to $9.85 as of press time. When EA made its initial $26-per-share offer in February, Take-Two's share price was just over $17.
Content you might like…
-
Take-Two grooming Agent to be the next GTA
E3 2009 Q&A: Discussing E3 and the current console cycle, president Ben Feder declares the just-announced PS3 exclusive has the Houser Bros. and Rockstar North's "A team working on an AAA title."
- Jun 4, 2009
Users who looked at this article also looked at these content items.
Hot Stories
Newsmakers
-
World of Warcraft target of latest suit from PSN plaintiff
San Jose man adds Activision Blizzard to growing list of courtroom opponents, takes issue with MMOG fees, alleges ill effects on mental health, seeks $1 million. Full Story
- Posted Nov 25, 2009 12:58 am GMT
- 859 Comments
-
Top US Nintendo PR exec resigns
VP of corporate affairs Denis Kaigler leaves after less than two years at Nintendo of America; no replacement yet named. Full Story
- Posted Nov 24, 2009 12:26 am GMT
- 122 Comments
Featured Stories
-
Assassin's Creed II slays 1.6 million in one week
Ubisoft says internal sales reports shows critically lauded sequel outselling original by 32 percent. Full Story
- Posted Nov 24, 2009 5:22 pm GMT
- 318 Comments
-
Microsoft patents in-game guide system
Researcher's 2008 patent for "User-Powered Always Available Contextual Game Help" shows Microsoft is considering an in-game guide similar to that of New Super Mario Bros. Wii. Full Story
- Posted Nov 25, 2009 1:13 am GMT
- 277 Comments
-
2 million Xbox Live users Facebooked, a-Twitter
Microsoft announces around 10% of its subscribers log onto social networks during first week of 360 integration; 1 million check out Last.fm, 1.7 million peruse Zune video store. Full Story
- Posted Nov 24, 2009 7:27 pm GMT
- 148 Comments
-
Datel suing Microsoft over memory-unit lockout
British maker of high-capacity, low-price storage units takes legal action against software giant, accusing it of antitrust violation. Full Story
- Posted Nov 24, 2009 1:28 am GMT
- 530 Comments
-
Modern Warfare 2 classification appealed in Australia
South Australian Attorney-General Michael Atkinson says game allows players to be "virtual terrorists;" Classification Board says no appeal has been received to date. Full Story
- Posted Nov 24, 2009 5:05 am GMT
- 287 Comments
Submit News
Related Game
- Rockstar Games
- Rockstar North
- Modern Action Adventure
- Release: Apr 29, 2008 »
- PEGI: 18+
Related Games
Recent News
-
Blizzard game design chief Rob Pardo and lead designer Jeff Kaplan discuss acclaimed fantasy franchise's long history, from Orcs and Humans to the World...
summer_star17x posted Dec 18, 2008 9:50 am GMT (does not meet display criteria. sign in to show)
brendanhunt1 posted Dec 18, 2008 9:06 am GMT (does not meet display criteria. sign in to show)
dmish82 posted Dec 18, 2008 7:02 am GMT (does not meet display criteria. sign in to show)
-Mist- posted Dec 18, 2008 6:13 am GMT (does not meet display criteria. sign in to show)