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Housers Will Stay With Rockstar - Analyst

Kris Graft's picture

By Kris Graft

September 23, 2008

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With Grand Theft Auto masterminds Sam and Dan Houser's contracts up for renewal in February 2009, speculation has led some to believe the pair could be sniped by rival game makers.

But analyst Mike Hickey with Janco Partners finds that scenario unlikely, saying the two will stay with Rockstar Games.

He wrote in a Tuesday investor note, "We find it unlikely that the Houser brothers would leave Take-Two Interactive for a competitor, as loyalty, compensation, culture and compelling IP should be sufficient in aggregate to leave employment alternatives unappealing."

Speculation about the possible departures mounted when Activision Blizzard CEO Robert Kotick said during a recent analyst presentation, "[Activision] definitely become the destination location for independently-minded entrepreneurial talent," after being asked about the Housers.

Sam and Dan, who serve as president and VP of Rockstar Games, respectively, were a major factor Electronic Arts' recently cancelled $2 billion bid to acquire Rockstar parent Take-Two.

Grand Theft Auto IV, released in late April, racked up first-week sales of $500 million, the most recent testament to the Housers' impact on Take-Two.

Hickey also said he expects GTA, which is also coming to Nintendo DS, to make another portable appearance on the Apple iPhone.

"Apple’s determination to layer gaming applications into the device’s consumer value proposition and growing installed base is likely sufficient motivation for a deal," he said.