Take-Two Interactive, a specialist in violent video games such as “Grand Theft Auto,” admitted yesterday it was too quick to pull the trigger.
The New York company, which has been plagued by an accounting scandal, posted a much wider loss in the second quarter than it had forecast and warned Wall Street to expect more of the same in the third quarter.
The company blamed sluggish sales of older titles for the loss of 33 cents a share – well below the 15-cent loss the company had predicted in April. The shares dropped 5 percent to $28.65 on the news.
Take-Two’s controversial “Grand Theft Auto,” which allows players to steal cars and fire on people in a shoot-’em-up fashion, has propelled the company to the top of the video game industry, but it has had far less success cultivating other titles.
Richard Roedel, who became chairman this year after founder Ryan Brant stepped down, has added chief executive responsibilities to his portfolio. He served as interim CEO when Jeffrey Lapin resigned from the post in April.
The Securities and Exchange Commission continues to probe Take-Two, which restated results for seven quarters after it admitted to improperly booking revenues. Late last year, the company said Brant and three other employees had been served Wells notices, indicating that SEC charges were likely.
Take-Two’s “Grand Theft Auto: San Andreas,” slated for release in October, is expected to be one of the top-selling titles this year. The company has released five games in the series, including “Grand Theft Auto: Vice City,” which set sales records when it was released in 2002.