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BioShock 2 Pushed Back into Fiscal 2010; Take-Two Slashes Outlook

Posted July 13, 2009 by James Brightman

Update: On the fiscal conference call today, Take-Two CEO Ben Feder has now confirmed that BioShock 2, Mafia II, Max Payne 3, and Red Dead Redemption will all launch during the "first half of calendar 2010."  

Original story:

We all hate game delays, but whether it's for adjustments to fiscal planning or a title just requires that extra bit of polish, it's a component of the industry that's largely unavoidable. Today, Take-Two decided to delay one of the more anticipated games of 2009: BioShock 2. The game is now assigned a very vague release date of "fiscal 2010," which technically starts for Take-Two in November 2009, but given the fact that they did not narrow it down to a "Holiday" or even "Winter" release, we're starting to think gamers may have to wait until well into Q1 of calendar 2010 at least.

So that's the bad news for gamers, and the bad news for Take-Two and investors is that the company has also lowered its guidance today "to reflect reduced sales of catalog products and lower than anticipated initial retailer orders of new releases, due to a retail environment that is proving even more challenging than the Company's previous expectations." 

For the third quarter ending on July 31, Take-Two is now expecting revenue in the range of $120-$130 million. For the fourth quarter ending on October 31, the company is anticipating revenue in the range of $350-$400 million and for the fiscal year ending that same time, Take-Two now expects total revenues to come in between $0.96 billion and $1.0 billion. The company does not expect to be profitable in fiscal 2009 at this point, but encouragingly, it does believe it will post a profit in 2010, which is a "non GTA year." 

Strauss Zelnick, Chairman of Take-Two, stated, "We recognize that our revised outlook for the balance of fiscal year 2009, due to both internal and external factors, is a disappointment. That said, we concluded that moving the release of BioShock 2 into fiscal year 2010 was the right decision for the product. We believe the result will be a more compelling consumer experience and a better performing product in the marketplace. At the same time, near term retail conditions have proven to be more challenging for our business than the assumptions built into our prior outlook. We remain confident in the long term potential for Take-Two's business, and our ability to capitalize on that potential through our exceptional creative talent and solid balance sheet." 

Ben Feder, Chief Executive Officer of Take-Two, added, "The decision to shift a release date is never an easy one, especially with a product as highly anticipated as BioShock 2. We felt that it was essential to invest the additional time to ensure that this title will deliver what its fans expect and deserve. As a result, we will now be launching sequels to several of our strongest franchises - including BioShock 2, Mafia II, Max Payne 3 and Red Dead Redemption - during the next fiscal year. These titles will anchor our lineup for fiscal 2010, and along with other products planned for next year, provide a platform for enhanced financial performance in what we hope will be an improved retail environment."

James Brightman has been covering the games industry since 2003 and has been an avid gamer ever since the days of Atari and Intellivision. He was previously the EIC of GameDaily Biz.