Take-Two future in jeopardy due to GTA 4 delay
- — 10 December, 2007 20:16
The delay of Grand Theft Auto 4 on PS3 and Xbox 360 did more than upset millions of gamers anxiously awaiting its release -- it further complicated Take-Two's ongoing attempts to return to profitability.
According to The Street, the publisher could run out of both cash and credit reserves as soon as January or February, making the spring release of GTA 4 that much more crucial to the publisher's survival.
As a result, an incredible 32 percent of company stock is outstanding, meaning investors are anything but confident with Rockstar's sugar daddy at the moment.
Still, analysts say Take-Two can pull though if it launches Grand Theft Auto IV on schedule. Michael Pachter, for one, expects the game to sell 8.5 million copies by October, more than enough to turn things around.
Take-Two has seen a string of financial and management disasters in recent years. Despite its troubles, the publisher was ranked the six largest game-maker behind Nintendo, EA, Activision, Ubisoft, and THQ in Game Developers' 2007 Top 20 Publishers list.