Take-Two Delays 'Grand Theft Auto IV'

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Take-Two Delays 'Grand Theft Auto IV'
Take-Two Delays 'Grand Theft Auto IV,' Lowers Year Outlook; Shares Sink After-Hours

The video game publisher behind "Grand Theft Auto" said Thursday it is delaying the release of the game's latest installment until next year, and lowered its outlook sharply as a result.

"Grand Theft Auto IV" will now launch in fiscal 2008's second quarter, which ends in April of next year. It was originally slated for release this October, ahead of the crucial holiday shopping season where video game publishers make much of their money. The company said it needs more time to develop the game.

"Obviously, we are very disappointed to reduce guidance after having previously reaffirmed it," said Chief Executive Ben Feder in a statement. "Other than a matter of timing, the movement of 'Grand Theft Auto IV' does not compromise Take-Two in any way."

The company had said in June it expects a net loss between 60 cents and 65 cents per share for the fiscal third quarter ending July 31, but added it still expects to break even for the year. The company also forecast revenue between $1.2 billion and $1.25 billion for the year.

This is no longer the case. For the current fiscal year ending in October, Take-Two now expects a net loss between $1.25 to $1.35 per share, excluding stock options expenses and reorganization charges. Including the costs, the company forecast a net loss between $2.10 and $2.20 per share.

The company expects sales between $950 million and $1 billion for the year.

Analysts polled by Thomson Financial are expecting a loss of 30 cents per share on sales of $1.23 billion for the year.

Shares sank $2.56, or 15 percent, to $14.35 in after-hours electronic trading. In the regular session, shares added 15 cents to $16.91. The stock has ranged from $10.41 to $24.80 over the past year.

Via Yahoo Finance