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Forums - Sales Discussion - Take Two reports record revenue, but loses money, shares fall

Zombl337 on 17 December 2008

Take Two isnt doing business right if they made record revenue but no profit.



PREDICTIONS:
360 will outsell PS3 YTD for 2008. (CHECK!)
360 will have the best showing at E3 & TGS in 2009
2009 will be another year for the 360 over PS3
End OF 2009 SALES :: 360 - 40M;  PS3 - 30M; Wii - 70M

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Dgc1808 on 17 December 2008

Wow.... not good at all... especially in GTAIV's launch year.....



4 ≈ One

NJ5 on 17 December 2008

$323.4m revenue and $15m loss means $338.4m in expenses...

HOW are they spending so much money? WHAT are they spending it on??

The fourth quarter 2008 results include $9.3 million in stock-based compensation expense ($0.12 per share); $5.6 million in professional fees and expenses related to unusual legal matters ($0.07 per share); and $1.6 million in business reorganization costs ($0.02 per share). Results for the fourth quarter of 2007 included $4.8 million in stock-based compensation expense ($0.06 per share); $4.5 million in business reorganization costs ($0.06 per share); and $1.5 million in professional fees and expenses related to unusual legal matters ($0.02 per share).


This still doesn't nearly explain it. I also find it funny that the "unusual" legal matters have occured in both years.

 



My Mario Kart Wii friend code: 2707-1866-0957

Slimebeast on 17 December 2008
FishyJoe said:
So if I've calculated correctly, they made a total of $97 million profit for the fiscal year. That's pretty pathetic in a year when GTAIV is released. How this company is going to make any money at all in 2009 is a mystery to me.

 

 It's pathetic, but then Take-Two has been infamous as money losing publisher for years despite it's high-profile franchises, hasn't it?

Actually if u assume GTA4 shipped rufly 10 million copies in Fiscal 2008, and let's say each copy made $10 net profit, the profit from GTA4 rufly equals those $97 million. That means that the rest of Take-Two at least didn't lose money, like they did in the past.



L.C.E.C. on 17 December 2008
kitler53 said:
FishyJoe said:

Some interesting comments from T2.

http://www.gamasutra.com/php-bin/news_index.php?story=21581

"We believe we'll continue to benefit from the growing install base of the Nintendo Wii," said Feder. "Our relationship with Nintendo has never been stronger," he added, calling it a "great foundation on which to build."

"Even some of the M-rated content that we think is much more appropriate for the [Xbox] 360 or the PS3... we have to look at the Wii as a viable platform, because we can't ignore that install base," Feder said. "We just can't."

wow, that is an amazing quote.

 

Heh... I knew they'd come around... just like on the DS...




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Kasz216 on 17 December 2008
jesus kung fu magic said:

Why is bioshock 2's platform(s) tba still?

Oh yeah Bioshock too.  Bioshock is a good game.

Good ole Irrational Games.

 



Oyvoyvoyv on 17 December 2008
Slimebeast said:
FishyJoe said:
So if I've calculated correctly, they made a total of $97 million profit for the fiscal year. That's pretty pathetic in a year when GTAIV is released. How this company is going to make any money at all in 2009 is a mystery to me.

 

 It's pathetic, but then Take-Two has been infamous as money losing publisher for years despite it's high-profile franchises, hasn't it?

Actually if u assume GTA4 shipped rufly 10 million copies in Fiscal 2008, and let's say each copy made $10 net profit, the profit from GTA4 rufly equals those $97 million. That means that the rest of Take-Two at least didn't lose money, like they did in the past.

I believe they get closer to 30 dollars (but not fully that much).

 



http://www.vgchartz.com/games/userreviewdisp.php?id=261

That is VGChartz LONGEST review. And it's NOT Cute Kitten DS

shams on 17 December 2008

Great. Another publisher pulling in $300m in revenue - and reporting a $15m loss. Wonder how much of that revenue is going on executive salaries.

Its a real pity EA didn't gobble up Take2 - then both companies could have fallen over on their combined weight of flab.



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shams on 17 December 2008

LOL... wouldn't it be "amusing" if Bioshock II came to the Wii as well... :)



Gesta Non Verba

Nocturnal is helping companies get cheaper game ratings in Australia:

Game Assessment website

Wii code: 2263 4706 2910 1099

NJ5 on 17 December 2008

I'm still trying to come up with a reasonable explanation for $300+ million in expenses... Did they just make 3 GTA games in a single quarter?



My Mario Kart Wii friend code: 2707-1866-0957