Re: Attention Media MoronschenryDecember 8 2005, 13:37:38 UTC
GTA was a minor problem in Take-Two's grand scheme. Eibeler really is a lousy CEO.
Poor financial performance, they missed their projected revenues, they've lied (a bunch of times) and their stock has been going down since the beginning of the year. Granted, this isn't Enron style bad, but not much around here.
Wow, lookit that...that's not very good at all.
This is not video game news, this is financial news.
Re: Attention Media MoronsericseilerDecember 8 2005, 18:09:01 UTC
This makes sense since the lion's share of revenues that Take 2 earns each year is derived directly from Rockstar. Their 3rd party publishing revenues are only a drop in the bucket compared to their internal development. When the next GTA is released I'm sure their revenue will spike for that quarter, meeting or exceeding revenue forecasts, and then quickly decline because nothing else in their lineup is a blockbuster.
As far as public companies go game publishers and developers are one of the least safe investments around. Games often slip causing earning forecasts to be missed, and since most publishers only launch a few titles a quarter that can be devastating, causing their credit line to be downgraded, making it even harder to grow, and making investors nervous. Companies like EA are a little safer because they launch so many titles each quarter that even if a title gets pushed back, or they lay an egg, their profits still remain relatively high and don't fluctuate wildly. I’m sure you could look at a lot of publishers in this industry that have the same problem and say they all have bad CEOs, but CEOs don’t miss ship dates alone - it takes a concerted effort (or lack thereof) on behalf of the developers, production, and management overseeing products to miss ship dates. On the issue of corporate dishonesty and questionable marketing practices; well, that may very well be a sign of a bad CEO, or at least an executive culture that doesn’t care about business ethics (like they would be the first).
What does this have to do with games? A lot, if Take 2 doesn't get their act together and start showing consistent earnings then they will won't be able to produce as many games. What does this have to do with politics? Probably nothing.
Poor financial performance, they missed their projected revenues, they've lied (a bunch of times) and their stock has been going down since the beginning of the year. Granted, this isn't Enron style bad, but not much around here.
Wow, lookit that...that's not very good at all.
This is not video game news, this is financial news.
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As far as public companies go game publishers and developers are one of the least safe investments around. Games often slip causing earning forecasts to be missed, and since most publishers only launch a few titles a quarter that can be devastating, causing their credit line to be downgraded, making it even harder to grow, and making investors nervous. Companies like EA are a little safer because they launch so many titles each quarter that even if a title gets pushed back, or they lay an egg, their profits still remain relatively high and don't fluctuate wildly. I’m sure you could look at a lot of publishers in this industry that have the same problem and say they all have bad CEOs, but CEOs don’t miss ship dates alone - it takes a concerted effort (or lack thereof) on behalf of the developers, production, and management overseeing products to miss ship dates. On the issue of corporate dishonesty and questionable marketing practices; well, that may very well be a sign of a bad CEO, or at least an executive culture that doesn’t care about business ethics (like they would be the first).
What does this have to do with games? A lot, if Take 2 doesn't get their act together and start showing consistent earnings then they will won't be able to produce as many games. What does this have to do with politics? Probably nothing.
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