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Take-Two loses $110M, GTA V making 'substantial progress'

Publisher posts loss for first quarter on lower-than-expected sales of Spec Ops: The Line, Max Payne 3; catalog sales grew 50%, digital sector up 33% year-on-year; GTA V making "substantial progress."

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[UPDATE] In a post earnings financial call, Take-Two spoke of Grand Theft Auto V, saying the project is in full development and is making "substantial progress." No other information about the open-world game was made available. Platforms and a release date for the game remain listed as TBA.

The original story is below

Take-Two had a rough three months ended June 30. The Grand Theft Auto publisher today announced its first quarter financial results, revealing a $110.8 million loss, due in part to lower-than-expected sales of Spec Ops: The Line and Max Payne 3, as well as impact from an unspecified one-time payment of $15 million. Net revenue for the period came in at $226.1 million, down from the $334.4 million the firm hauled during the same period last year.

Spec Ops: The Line performed under expectations, Take-Two said.
Spec Ops: The Line performed under expectations, Take-Two said.

Take-Two said the strongest contributors to its bottom line during the period were the release of Max Payne 3, which has shipped 3 million copies, catalog sales from the Grand Theft Auto and Red Dead Redemption franchise, the release of Spec Ops: The Line, and continued sales of NBA 2K12.

According to Take-Two, catalog sales jumped 50 percent year-on-year, accounting for 26 percent of total revenue. Additionally, the company's digital sector was a bright spot, growing 33 percent from the year prior, and making up 13 percent of net revenue. This was driven by downloadable content offerings for the Sid Meier's Civilization series, NBA 2K12, and the Grand Theft Auto franchise and Red Dead Redemption franchises.

Looking ahead, Take-Two is forecasting second quarter revenue to come in at between $200-$250 million, with full-year expectations slated to hit between $1.7-$1.8 billion, with a swing to profitability also expected.

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VenkmanPHD

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Max Payne 3 was exactly what the third person shooter genre needed. Straight up AAA+++ Game right there. But big surprise, Rockstar does everything correctly.

As for Spec-Ops, I am not surprised at all. I played the Demo and it was ok, a few nice tweaks for the war genre... but that's the problem, it's the War genre. Aside from my own personal distaste of this genre these days (how EVERYONE isn't sick of war shooters, I just don't know) The main problem is that Spec-Ops did absolutely nothing to SHOW people how it was differant from the 500 other war shooters that are out this generation, therefore giving no one any incentive to buy it. It's called marketing, and they did it poorly for this game.

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tightwad34

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@VenkmanPHD

I am reluctant to give Max Payne3 a go mainly because a co-worker said it doesn't have much replay value if you aren't interested in the multiplayer, which I am not. And I am also not a trophy hunter unless I REALLY like the game. I can't imagine any more than a 15 hour campaign, which isn't bad, but not quite $60 for me. I guess I will wait for a major price drop or X-Mas. I will not search for a deal online as I just have a thing against buying online.

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MightyEzekiel

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@tightwad34 Its on ebay for 25$ shipping from india.. i bought it for 30$ when it came out... :)

Spec ops also..

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camyers1310

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@tightwad34 I highly recommend renting it. It doesn't have much replay value but it us a well executed game. It's a nice change up for you're regular third person shooter. Great action, great environments, and awesome SFX on screen.

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TheArcade

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You can only steal cars so many ways before it gets old and tired.

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VenkmanPHD

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@TheArcade ...What is this in reference to? No one said GTA was doing poorly or that it had anything to do with their quarter losses. Read the article again, the low seller was Spec ops (big surprise, the war shooter genre is over-saturated and it made no point in standing out amidst the crowd)

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TheArcade

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@VenkmanPHD Oh I'm aware Spec Ops underperformed. Wasn't commenting on which game cost Take-Two millions of dollars. I was simply referring to the repitition in GTA. I sincerely doubt they can re-invent the wheel, I'm tired of seeing lackluster sequels in an already saturated market.

Don't we have enough unnecessary sequels with outdated concepts? I could see if the series was still fun however I feared it's lost it's flavor a long time ago.

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ImAGamerII

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@samantha_sneez @TheArcade About the only change I'm hoping for (its the same thing I've hoped for since GTA IV actually) Parkour I want them to include parkour/free running cmon R* its about time to allow us to use Parkour/free running. I mean you know it exists its on tv all the time. Heck American Ninja Warrior alludes to it in the demo reels. Let us move around like those guys in ANW already.

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samantha_sneez

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@TheArcade

Agreed!

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Master_Turismo

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Just wait till Borderlands 2 comes out in a few months. Take-Two will be back on top once again.

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Erebus

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As a fan of Max Payne 1 and 2, I found Max Payne 3 to be pretty damn amazing. I got it at half price from Amazon a couple weeks ago for PC, and I feel like I stole it. Try and play old MP, especially part 2 today -- your rose-tinted goggles will fall right off.I finished the original Max Payne on every difficulty level, including the secret hell level. It remains one of my favorite games of all-time. Max Payne 3 did not disappoint.

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vicsrealms

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Max Payne 3 and Spec Ops didn't interest me that much. Now, if they were bringing GTAV out on the PC at the same time as the console versions. Then I would happily help Take-Two and Rockstar out. Unfortunately, I expect the we will have to wait a while for the PC version. Of course, there is still nothing on a RDR PC version as well.

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VenkmanPHD

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@vicsrealms Pick up Max payne 3 from a redbox, it will be the best 2 dollars you have ever spent my friend. I swear to god on that.

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vicsrealms

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@VenkmanPHD Redbox doesn't offer PC rentals, and I sold my PS3 to a friend since all it was doing as gathering dust. Especially, since I picked up Shining Force 1 and 2, Shining in the Darkness, and Phantasy Star 2-4 during the Steam sale.

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burnettaj

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Max Payne 3 was good and I enjoyed it but it did lack some of the fire that Max Payne I and 2 had.

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vivalatour

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@burnettaj max needed tripwire and C4 , I think the pain killers got better and it's a good thing the government don't know !

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VenkmanPHD

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@burnettaj Out of curiosity, what fire do you mean? I felt that Max Payne 3 drastically improved in story, presentation, gameplay, and overall fun-factor. I will agree that the lack of carrying an entire arsenal with you was somewhat dissapointing though...

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fanirama

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Max Payne 3 is nowhere near as good as MP1 or MP2. I found Max Payne 3 to be not well done. It felt wrong...

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Kravyn81

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Spec Ops just wasn't that great, honestly, so no surprise there. I am surprised by MP3 not performing as expected. I thought buzz around that game was held very favorably pre-release.

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Everiez

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No surprise. Most of their games have been boring and losing fun factor lately.

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Blue_Tomato

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@Everiez Examples?

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Everiez

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@Blue_Tomato GTAIV, Mafia 2 and LA Noire. R* and 2K went overly serious theme and neglect all the fun side stuff to do, replacing them with collectibles.

I enjoyed RDR though. It was great halfway until Mexico part then things went downhill from there.

MP3? the gameplay was average and that's the only thing good about it. Way too many cutscenes and annoying drunk filter screen. As if Max wasn't stupid enough, he's drunkard with mental depression problem in charge of protecting rich family that I don't care about from start to finish. I just don't get what is so good about this game.

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MOHAMADZEUS

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take two is a company that i fully trust with they have incredible studios and great games hopefully they will release gta v this year to make up for it & hopefully a red dead redemption pc port

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rileypoole1234

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Why would they expect a generic third person shooter to perform "over expectations"?

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Blue_Tomato

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@rileypoole1234 Because of the brand name.

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TheZeroPercent

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MAN !

when take2 is losing money

in the video game industry

who isnt?

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Undietaker

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@TheZeroPercent

Bethesda, cause they're one of the very few Devs that don't just pump out 10 or more halfassed games a year...

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tryagainlater

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GTA5 will make so much money, this figure is nothing.

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Johny_47

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That's 'chump change' for Take Two Interactive and besides, I believe GTA V will more than make up for that, can't wait for it, so much.

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SingletreeAve

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Max Payne 3 shipped 3 million copies, but sales were lower than expected? What did they expect. Or are there a bunch of shipped copies gathering dust somewhere? 3 mil seems pretty good for MP3.

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Joeguy00

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MP3 takes away your control way too much and the cut scenes ruin the flow of gameplay. I'm glad I demoed a friends version. It wasn't a very "Max Payne" experience as it was a "Bullet Time with grumpy inner dialog" experience. Not the tortured Noir vibe that the franchise use to have.

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-HaloHitman-

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Max Payne 3 was amazing, I just wish there was more info on GTA.

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flamingboard

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Max Payne 3 was amazing. If you haven't picked it up yet please do so. I played the demo for Spec Ops: The Line but wasn't really impressed.

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pokecharm

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I did my part, I got both Spec Ops and Max Payne and enjoyed 'em both!

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decoy1978

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When the holidays hit and games go for a little bit less. That will help retailers move products.

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AuronAXE

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I bought the GTA Collection on Steam recently so I at least feel good that I've helped their profits in some way.

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skull2323

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More people should buy Max Payne 3 and Spec Ops: The Line since there good games.

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Doolz2024

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Trust me, GTA V is guaranteed to come out this year now. Take Two's updated predictions for the fiscal year show that GTA V MUST release within this window in order for them to meet or exceed their projections. To me, either Jan., Feb., or March next year isn't sensible. Missing out on the massive holiday rush would be a big mistake, and they know that.

Face it, October, (though doubtful, because of MP3 DLC coming that month), or November or the first week of December is when it will come out. WE WILL GET GTA V THIS YEAR.

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Sk8erHeadshot

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@Doolz2024 You do understand when this article, and their projections, reference a year, they mean fiscal year, right?

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Doolz2024

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@Sk8erHeadshot I'm well aware of that, thanks. Not sure how you gathered I might not be based on my last message.

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abarto

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Once GTA V is released, they're going to start printing money again. Sad to hear that Spec Ops: The Line and Max Payne 3 sold less than expected as they're both great games.

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billlabowski

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@ArcticWolf89 They'll make that number up in sales both on console and Steam. It's really nothing to be that worried about.

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deactivated-5fc556fadd350

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They should port Red Dead to PC that would be another million sales at least and I want to play that game.

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Lucidmike78

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I bought GTA IV 3 times. Once for my brother as a birthday present. Once for myself and bought both DLC's on release day. And then I moved to Korea for a year, I missed GTA IV so much, I bought a Korean XBOX 360 and GTA with both DLC's. A bargain at around $35 USD. Never a hint of a feeling that somehow I was wasting money. I think Take Two will be just fine if there are more people like me.

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bubba_1988

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@Lucidmike78 Why would you waste time playing video games in a foreign country?

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Saladudo

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2K'd released Red Dead Redemption for PC on Xmas and they'd be saved by now.

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megadeth1117

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That's really too bad, as both Max Payne 3 and Spec Ops were fantastic.

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plaintomato

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Max Payne was polished fun with great action and varied environments. But that didn't save it from being shoot out after shoot out after shoot out after shoot out...just another great military shooter in a different skin. Great. But sooo tired.

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