Take-Two recorded a significant loss and drop in revenues during the third fiscal quarter ended July 31, 2009.
Net loss for the third quarter was $55.5 million (£34.3m), compared to a profit of $51.8 million in the third quarter of fiscal 2008. Net revenue was down 68 per cent, from $433.8 million to $138.6 million (£85.8m).
The company’s loss and revenue decline can largely be attributed to a comparatively weak third quarter release schedule – in Q3 2008 Take-Two benefited from the dazzling performance of Grand Theft Auto IV, which surpassed all-time records for the launch of an entertainment property. In comparison, Q3 2009 sales were led by catalogue titles including GTA IV, The BIGS 2 and Major League Baseball 2K9.
"While the economy and retail environment continue to be challenging, we are optimistic that 'must have' triple-A and value products will be key drivers this holiday season,” said Take-Two chairman Strauss Zelnick. “That said, we are maintaining a prudent approach to our business outlook for the remainder of this year and as we head into fiscal 2010. We will continue to invest our resources in initiatives that will enhance our industry-leading creativity and innovation."
Take-Two titles set to release during the fourth quarter include Borderlands, GTA: The Ballad Of Gay Tony, GTA: Chinatown Wars for PSP and iPhone, and NBA 2K10.
"Our strong lineup for the balance of this year includes a broad array of titles that we believe will appeal to both hard core and casual gamers,” noted chief financial officer Ben Feder. “Looking ahead, we will continue to support our product development efforts with a solid balance sheet, operational improvements, and a creative team that is among the most talented in our industry."