Publisher posts loss for first quarter on lower-than-expected sales of Spec Ops: The Line, Max Payne 3; catalog sales grew 50%, digital sector up 33% year-on-year; GTA V making "substantial progress."
[UPDATE] In a post earnings financial call, Take-Two spoke of Grand Theft Auto V, saying the project is in full development and is making "substantial progress." No other information about the open-world game was made available. Platforms and a release date for the game remain listed as TBA.
The original story is below
Take-Two had a rough three months ended June 30. The Grand Theft Auto publisher today announced its first quarter financial results, revealing a $110.8 million loss, due in part to lower-than-expected sales of Spec Ops: The Line and Max Payne 3, as well as impact from an unspecified one-time payment of $15 million. Net revenue for the period came in at $226.1 million, down from the $334.4 million the firm hauled during the same period last year.
Take-Two said the strongest contributors to its bottom line during the period were the release of Max Payne 3, which has shipped 3 million copies, catalog sales from the Grand Theft Auto and Red Dead Redemption franchise, the release of Spec Ops: The Line, and continued sales of NBA 2K12.
According to Take-Two, catalog sales jumped 50 percent year-on-year, accounting for 26 percent of total revenue. Additionally, the company's digital sector was a bright spot, growing 33 percent from the year prior, and making up 13 percent of net revenue. This was driven by downloadable content offerings for the Sid Meier's Civilization series, NBA 2K12, and the Grand Theft Auto franchise and Red Dead Redemption franchises.
Looking ahead, Take-Two is forecasting second quarter revenue to come in at between $200-$250 million, with full-year expectations slated to hit between $1.7-$1.8 billion, with a swing to profitability also expected.
you cant lose something you never had.. just say we didnt make as much as we wanted and leave it at that
Get with it people!!!
They have made a loss on their last profit....they still made 220 mill.
They have not lost anything except some profit their still making sh!!t loads of cash!
I don't know why they would want to release GTA 5 next year. It would be smart of them to release it for the holiday/christmas season this year. Unless they need more time developing it. But don't they have a huge team working on GTA 5 and can do basically 5 years of development in 2 years? (compared to other devs)
If you're selling 3 million+ copies of a game and are still loosing money, you're obviously doing it wrong.
@Sturmfuehrer_ They are loosing money with the development of others games like GTA V who cost a lot with all the employes involved.
It's the same when a console manufacturer put a lot of money in Research & Development before the release of new hardware.
Keep pumping out awesome Civ V expansions and packs and I'll gobble them up. My friends and I have over 15 games in progress together!
GTA V won't come out until next year. Since Max Payne was released this year. I'm pretty sure they are in planning stages for RDR2, which will probably follow GTAV in 2014. Max Payne 3 sold well and helped keep T2 from losing a lot more money.
So you sell 3 million copies of your product and you're still complaining.Why don't you go fuck yourselfs Take-20CM.
@Heydan1984 Do you have any basic understanding of how business works? Doesn't matter how much their games sold, they still lost money. Not that complicated.
@Spartan_418 Ow i'm sorry.But the day 3 million units sold are considered a disaster while other studios pray for 1 or God bless 2...actually F you too.
@Heydan1984 depends on how much it cost to make. if they spend 160 mill to make and ship they haven't recouped cost yet. even if they did how much will they have to fund other projects. just look at what happened to the koa dev they did a million units or more but didnt make enough to stay in business from that game and they sold over a million copies.
@Heydan1984 Owning a bakery, you make a lot more dough than they do it seems.
@Hurvl I can understand and really condone this business practices from a professional point of view but have we really reached this point in space and business time continuum in which 3 mill units sold are considered NOT THAT MUCH as a profit as it should have been? That is what eludes me.Probably that's why i own a bakery and 6 family stores instead of a...sigh...franchise.
@Heydan1984 @Spartan_418 Expectations are a tricky thing. Many people would say that a fairly good game sucked, because it didn't meet their expectations. I rarely speak in absolutes, like saying this game is 10/10 or 0/10, but I've also thought that a game felt worse because I expected more out of it. I hope they make the right conclusions about why it failed their expectations (because it wasn't good enough) and not try to make some lame excuse about something else entirely.
GTA V wont even be out next year, they are being so "fuzzy" on how far along it is we really dont know. Outside chance it will come out in Oct 2013. Bigger chance its being held for the PS4 etc. One of the few things Rockstar does well is irritate people with this crap.
@Zoomer30 Did you not read the article? They are expecting $1.8 BILLION by March 30th, 2013.. Those numbers are too high to be anything but GTA figures.
me and alot of people i know decided to wait untill max payne 3 drops in price to buy it, as for spec ops, i assumed it was just another call of duty type game and ignored it, i take it most people felt the same way about both games
I could tell from the outset Max Payne 3 wasn't gonna do well. I don't remember it being a big deal in the PS2 era, especially the way it was marketed. Along with the release of the Grand Theft Auto V trailer and it was doomed. Might as well, put Max Payne 3's release on hold and release GTAV. Take-Two can only sell Grand Theft Auto right now until V is released. and the fact that they brutally messed up and ended up not releasing Grand Theft Auto 3 yesterday on PSN because of a problem with one song in the soundtrack is not going to make things any better. Either that was a big mistake or they are getting desperate, next year is going to be a competitive year for developers. Nintendo has the Wii U, Sony has all these exclusives that everyone is going to beating the doors down retailers for, and my prediction is Microsoft is going to lose their edge unless they come up with something fast.
actually the first max payne was a huge deal on the ps2. the second game didn't do too well from what i remember.
Max Payne 3 was an awesome game , more than 3 million copies sold , but let's face it.... Spec Ops wasn't that good. Rockstar got to admit that wasn't a good investment at all.
Rockstar should invest their money and time on some bad ass sequels for Bully or Manhunter titles.
I'm not saying it's bad to try something new , but you got to have some serious money backup , this way if things go bad (or not good as the devs plan) you won't bankrupt the company.
Sucks about Spec Ops, sure the combat was, with a few exceptions, a straight rip-off of Gears of War but the story was clever, really clever.
Wooowwwww, that samantha sneez "person" is taking this all a little too seriously. You don't like the game we get it....but guess what....alot of other people do. I think the simple answer here is don't play it. hating grand theft auto cause it has no rpg elements is pretty ridiculous cause simply.....IT'S NOT AN RPG!!!!!!
yo tough shit i see where your coming from but in a nutshell it seems like she is wanting change to the concept not complete overhaul. did you actually read what she wrote or are you jumping on the bandwagon
who doesnt want change
yeah lets all pick on her because she has a very different opinion about a game come on ~epic sarcasm~
I got a gd idea reasle the gta5 game already work 24 hours to get the god damm game done by november .
I hope R* is still working on "Agent". I'm also anxious for RDR2 and an L.A. Noire sequel. It's also about time for a new Midnight Club game.
@thereal-15-cent wow man , I thought I was the only one still thinking there is a game"AGENT" out there somewhere ? R* is really up on the social page AGENT has been "coming soon" for a long long long time !
Weird timing. Gamestop posted an article about the status of "Agent" just a few hours ago. R* didn't have much to say, but at least it isn't officially canceled.
Like kkushalbeatzz said, we started the conversation before the other article was written. The weird part is that they hadn't released any news on the game for months. It was out of nowhere.
@GamerLegend10 No thing is they posted these coments before the article.
if it will help any , my nephew will be getting both MP3 and The Line for his
birthday because he's a spoiled little bra-kid ! just because these games have not been bought yet does not mean they won't ! all I hear everyday is the government losing billions of dollars etc. I wish I was in the position to say I lost thousands ? people I know would think I was bragging ! most of the time companies will raise prices to cover loses , I think in some cases they should lower to increase sales !
but of course that's me and what do I know about the ways of greedy business ?
no offense intended here , I know that's the way it is and probably never change ..
I should have learned to play the guitar I should have learned to play them drums !
In other news, EA makes another half-ass deal offer for the acquisition of the 2K Interactive. More news at 11 for this "shocking" development
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