Take-Two Interactive Software, Inc. has just reported fairly disappointing first quarter 2006 financial results, with net sales for the quarter down to a piffling $265 million compared to $502.5 million for the first quarter 2005.
Bear in mind, of course, the first quarter of 2005 was the busy sales quarter, following the release of the company's blockbuster Grand Theft Auto: San Andreas on PS2. Take-Two execs also attributed the lower first quarter results in 2006 to continued retail weakness for video game software and lower retail pricing, as the industry began its cyclical transition to new hardware platforms.
Grand Theft Auto: Liberty City Stories has been the number one selling title for the PSP in the US in each month since its release last October, and Rockstar also introduced the PlayStation 2 Greatest Hits and Xbox Platinum Hits versions of Grand Theft Auto: San Andreas. 2K's leading titles in the quarter were Sid Meier's Civilization IV for PC and NBA 2K6 for the Xbox 360.
So, money-wise, the company still has a few dollars stashed away, having generated approximately $38 million in cashflow from operations in the quarter, bringing the company's cash position to approximately $143 million as of January 31, 2006. The company hopes to return to profitability in its fourth quarter of fiscal 2006.
Second quarter products from 2K include possibly one of the greatest RPG’s SPOnG has ever seen - The Elder Scrolls: IV: Oblivion for PC and Xbox 360, along with Top Spin 2 for Xbox 360, Nintendo DS and Game Boy Advance; Major League Baseball 2K6 for PlayStation 2, Xbox, Xbox 360, PSP, and Nintendo GameCube; and World Poker Tour for PSP. 2K and 2K Sports already have a healthy line-up for later in 2006, including The Da Vinci Code (to be released in conjunction with the Columbia Pictures feature film in May) and Prey on PC and Xbox 360, planned for release this summer; Family Guy, The Darkness, NBA 2K7, NHL 2K7, College Hoops 2K7 and Stronghold Legends are all on their Q3/Q4 release schedule.
Titles planned for the second quarter from Rockstar Games include Midnight Club 3: DUB Edition REMIX for both the PlayStation 2 Greatest Hits program and the Xbox Platinum Hits collection, shipping next week, and Grand Theft Auto: Liberty City Stories for PlayStation 2, planned for release in late April. Further Rockstar titles for later in 2006 include Table Tennis for Xbox 360, Bully for PlayStation 2 and Xbox; two new PSP titles, including an all-new Grand Theft Auto title; and finally, a sequel of a Rockstar brand for a current generation console system. More news on these as soon as we get it from the dudes at Rockstar UK.
Take 2’s President and Chief Executive Officer Paul Eibeler had the following comments to make on these latest financials: "We are working to manage through the console transition, while positioning Take-Two for future opportunities…most importantly, we will continue to focus our development resources on creating great content and further leveraging our proprietary brands. Our commitment to quality products for current and next generation systems is critical to further strengthen Take-Two for the opportunities we see in 2007 and 2008."