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[deadhorse32]

TAKE-TWO GAMBLING ON A SECOND CHANCE

By DIANE HESS
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June 6, 2004 -- Would you trust your life to a drug-smuggling, cop-killing larcenist? Maybe not. But troubled New York-based video-game producer Take-Two Interactive has no choice.

The company publishes the wildly successful "Grand Theft Auto" series, which lets gamers live out their most lurid fantasies by playing a gangster. But a broader look at Take-Two's recent performance suggests that perhaps crime doesn't pay.

Take-Two missed earnings expectations in its first quarter and will do so again when it announces second-quarter results Tuesday. The company has said it will lose 15 cents per share - down from a previously predicted 33-cent profit.

T2 is relying heavily on the October release of its fifth "Grand Theft Auto" game - dubbed "San Andreas" - to revive sales.

If "San Andreas" fails to hit "reset" on Take-Two's success, the company could be a takeover target for another media company, such as Viacom, Warner Brothers or Disney, said Michael Pachter, an analyst at Wedbush Morgan Securities.

Disappointing earnings aren't Take-Two's only problem. Accounting scandals and government investigations have created deficits in the company's offices as well.

In April, the company announced the resignation of its chief executive, Jeffrey Lapin. At the same time, it reappointed Paul Eibeler as president.



Eibeler previously held the position between 2000 and 2003 - a period for which the company has restated its results. The Securities and Exchange Commission is in the process of a formal investigation of the company for its accounting.

"I am short the stock," said Mark Cohodes, general partner of hedge fund Rocker Partners. "I think that it is a disaster.

"We identify companies that are fads, frauds and failures," Cohodes added. "And we think this company is all of those things."

In April, T2 blamed its disappointing second quarter on, among other things, the delay of the Western video game "Red Dead Revolver." The game hit stores last month, but has gotten disappointing reviews. The company, however, is putting most of its hopes on "San Andreas."

"There is a chance 'San Andreas' will sell like the last couple of games in the series," said Shawn Milne, an analyst at Friedman Billings Ramsey, who covers the industry. "Everyone thinks that it is going to be the biggest product on the market."

Paul Tryon, an analyst at First Albany, stressed that Take-Two needs to nurture other franchises. "In order to survive, they are going to have to develop other successful products," he said. "This is not an industry where a single game can exist for longer than one cycle."

Sometime in 2006, Sony, Microsoft and Nintendo are expected to launch new consoles, something Take-Two has to take advantage of, he added. "Take-Two will need to come up with other games to sustain growth," said Tryon.

http://www.nypost.com/business/25160.htm

 

[Wario64]

RED DEAD REVOLVER BOMB BOMB

 

[Matlock]

Take 2 will also have a bomb in Kings of War, if there's any justice.

 

[Floater]

RED DEAD REVOLVER BOMB BOMB

That's a third Quater title, Wario.

 

[fbcamp]

Take Two also has Max Payne, though the second one bombed.

It's a shame that they're facing financial difficulties, since they really don't make bad games.

 

[Agent Dormer]

Take Two also has Max Payne, though the second one bombed.

It's a shame that they're facing financial difficulties, since they really don't make bad games.

Manhunt and Red Dead Revolver don't classify as bad games? That's news to me.

 

[Littleberu]

Take Two also has Max Payne, though the second one bombed.

Well there wasn't any advantage of buying it anyway.

 

[Yossarian]

Manhunt and Red Dead Revolver don't classify as bad games? That's news to me.

You see, to be a bad game, a game has to actually be played by someone in order for them to describe it as "bad".

 

[Agent Dormer]

You see, to be a bad game, a game has to actually be played by someone in order for them to describe it as "bad".

I played both Manhunt and Red Dead Revolver. The former was generic and lacking anything beyond the "we made this to stir up controversy" feel. The latter was okay, but had lots of room for improvement.

 

[arter_2]

one trick pony

 

[fennec fox]

one trick pony

You bastige, you took the words right outta my mouth

Of course, the fact they don't produce anything "AAA" (if you don't mind my using PRspeak) other than GTA does affect them like that.

 

[pilonv1]

I already posted the One Trick Pony stuff elsewhere . Anyway GTA is a curse for Take Two.

 

[Wario64]

RED DEAD REVOLVER BOMB BOMB

edit: Ah crap, I didn't mean to reply to this thread and now I can't delete

 

[Ninja Scooter]

Don't give Rockstar any credit for GTA! Thats DMA's!! (and i will still refer to them as such, even if Rockstar made them take on that stupidass "rockstar north" name!) I WANT A NEW BODY HARVEST GODDAMMIT!

 

[ravingloon]

Don't give Rockstar any credit for GTA! Thats DMA's!! (and i will still refer to them as such, even if Rockstar made them take on that stupidass "rockstar north" name!) I WANT A NEW BODY HARVEST GODDAMMIT!

Or better yet, Uniracers.

 

[Alcibiades]

edit: Ah crap, I didn't mean to reply to this thread and now I can't delete

well I mean to, some mine comments:

I hope San Andreas is not successful as previous 2 cause now they seem to act GTA-dependent...

Space Station Silicon Valley was a really cool game and I thought DMA and Take-Two could do some really cool stuff back then, but now a lot of their games seem to use "violence" or "mature content" to pull people in...

 

[Alcibiades]

Don't give Rockstar any credit for GTA! Thats DMA's!! (and i will still refer to them as such, even if Rockstar made them take on that stupidass "rockstar north" name!) I WANT A NEW BODY HARVEST GODDAMMIT!

Body Harvest definitely cool and quirky in it's sci-fi way, but Space Station Silicon Valley just totally OUT THERE!!!

 

[emerge]

Will we see another great developer go down with a shitty publisher? Stay tuned for the next episode of "Gamer Dreams"

 

[Tenguman]

GTA:SA might be up in up in the air. Going from "Scarface" to "Boyz N the Hood" is a big change. It's going to depend on the target audience.

 

[SolidSnakex]

GTA:SA might be up in up in the air. Going from "Scarface" to "Boyz N the Hood" is a big change. It's going to depend on the target audience.

It's not a gamble. How many people really played GTA for it's plot? As long as the core gameplay is the same (and it seems to be) it's going to do fine.

 

[Chopin Trusty Balls]

Midnight Club 3 will be awesome.


Plus they have a real swarm(around dozen) of low price stuff like Vietcong,Scaler,Close Combat and other stuff

The Warriors game,Conflict Vietnam.
They have plenty of stuff to stay above water

 

[Tenguman]

It's not a gamble. How many people really played GTA for it's plot? As long as the core gameplay is the same (and it seems to be) it's going to do fine.

It's not so much the plot, but the feel of the game. I have to admit, that for me, there's no appeal in busting down the streets jamming to rap tunes and hanging with homies in the ghetto. I liked the scarface feel of the others, and this one turns me off a bit. It's a cultural thing I guess.

like i said, it's going to depend upon the majority target audience.

 

[SolidSnakex]

Even on GameFaqs where all the complains really started, even they say they're still going to get it even though they might not like the lead character. As long as it's fun to play that's all that really matters.

 

[Tenguman]

You might be right. I guess I don't have as much faith in people.

 

[Firest0rm]

Whatever happened to that sequel to the riot game? Another bomb?

 

[SolidSnakex]

Whatever happened to that sequel to the riot game? Another bomb?

I don't think Rockstar's even publishing it.

 

[evil ways]

It's not so much the plot, but the feel of the game. I have to admit, that for me, there's no appeal in busting down the streets jamming to rap tunes and hanging with homies in the ghetto.

That's why you can change the radio to a rock station, and buy property in Las Venturras(Las Vegas), so you can hang with new people.

See, the whole "It's too thugish, I'm not feeling the hip hop look" excuse doesn't work anymore.

 

[Tenguman]

That's why you can change the radio to a rock station, and buy property in Las Venturras(Las Vegas), so you can hang with new people.

Well then that's cool.