Take-Two posts Q2 losses
'Mafia II' and 'Red Dead Redemption' releases delayedStrauss Zelnick told Wall Street analysts Tuesday that retail is stabilizing and the video game industry has shown resilience during the recession.
Nevertheless, Take-Two Interactive, the company Zelnick chairs, said that it had swung to a fiscal second-quarter loss amid revenue that plunged 57% compared with a year ago, when "Grand Theft Auto IV" was breaking records.
Take-Two said it lost $10.1 million on revenue of $229.7 million in the quarter, compared with a $98.2 million profit last year on revenue of $539.8 million.
The company also delayed until next year the release of two games, "Mafia II" and "Red Dead Redemption," and sliced its full-year revenue guidance to as much as $1.25 billion, about $100 million less than its previous target.
Take-Two CEO Ben Feder bragged Tuesday that "GTA IV" scored the biggest opening for any entertainment product, including movies, when it sold $400 million in product in its first week a year ago.
Also a year ago, Take-Two turned down a bid from Electronic Arts to purchase the company for $26 a share. On Tuesday, Take-Two shares closed 2% lower to $8.83.
The company is battling the perception that it is a one-trick pony given its reliance on the massive "GTA" franchise. Some of its other successful titles include "BioShock" and games from its 2K Sports subsidiary.