Video game publisher Take Two has announced that it has posted a loss for the first fiscal quarter of the year, which ended on June 30, while overall revenue went down when compared to the same period of last year despite the launch of two big titles, Duke Nukem Forever and L.A. Noire.
Net revenue for the quarter came in at 334.4 million dollars for the three month period, which is a decrease of about 40 million when compared to last year and well off the 351 million estimate that Wall Street was talking about.
Last year Take Two
managed to post a profit of 27.4 million dollars for the first fiscal quarter of 2010 but this year the publisher has shown a loss of 8.6 million.
When looking at figures that do not respect the GAAP rules of accounting, which mostly means that one off expenses like legal fees and the cost of closing down business are excluded, the company managed to make a small profit of just 2 million dollars.
The company has also said that it projects lower than expected revenue for the second quarter of the year.
When the financial announcements were announced Strauss Zelnick, the Chief Executive Officer at Take Two, stated, ”Our results benefited from the launch of Rockstar's groundbreaking and critically acclaimed title L.A. Noire, the release of Duke Nukem Forever, continued strong sales of NBA 2K11 and Red Dead Redemption, and growth in digitally delivered content. Given our solid performance year-to-date and robust pipeline of upcoming new releases, we are well positioned to be profitable on a non-GAAP basis in fiscal year 2012.”
L.A. Noire has managed to sell 4 million units during the quarter and will also launch on the PC during the fall.
The video games on which Take Two is relying for the coming months are: Spec Ops: The Line, BioShock Infinite and Borderlands 2