Pachter: Expect Closure, Delays from Take Two

In an article at Gamasutra.com, Michael Pachter, analyst for Webush Morgan says that changes are afoot for struglling publisher Take Two Interactive int he wake of recent management changes. He says that the company’s fiscal forecast isn’t as cheery as it once was and the new power players are looking to streamline business by reducing studios and playing safe in anticipating profit from upcoming game:

“We believe that new management understands what is required to turn the company’s fortunes around, and believe that they will take prudent steps to return the company to profitability. However, we believe that there are significant structural changes required in order to control costs, and believe that these changes will take more than a year to complete. On the revenue side, new management is saddled with the decisions made by the prior management for at least another year, and we do not expect new games such as The Bigs, All-Pro Football, Fantastic Four, or The Darkness to be wildly profitable.

We also think that the new management will take steps to cut costs as soon as practicable, resulting in studio closures and charge-offs for games in development.”

As Daniel posted earlier, Pachter also thinks it likely the company’s premiere title – Grand Theft Auto IV – will see some shifting of its release schedule.

Could Take Two make expectant fans wait even longer? Much of Pachter’s analysis is aimed at shareholder panic and behavior but I have to agree that many of the Take Two titles are not going to hit big this year – especially in the field of competitive sports where Electronic Arts is king. Though I personally think (read hope) The Darkness and Bioshock will do well.