taketwo

One complaint that some folks have with Nintendo is that its consoles and handheld devices lack mature games. But Take-Two Interactive chief Ben Feder was quick to point out on Friday that the Nintendo DS does have mature titles, and his company's Grand Theft Auto franchise is leading the pack.

Speaking to MCV in the U.K., Feder said as of February, Grand Theft Auto: Chinatown Wars "represented nearly 50 percent of the unit sales of all M-rated DS titles in the history of the platform."

It's a rather interesting comment that might make some scratch … Read more

Take-Two Interactive Software reached a $3 million settlement agreement with the U.S. Securities and Exchange Commission, relating to charges that the game publisher engaged in falsifying financial records as part of a stock option-backdating scheme, the SEC announced Wednesday.

A settlement agreement had largely been expected, after Take-Two announced two years ago that it had received a notice from the SEC's staff that it would recommend that charges be filed against the company. Take-Two, at the time, said the company expected to pursue a settlement agreement, rather than fight regulators in court.

Take-Two agreed to the settlement without … Read more

SAN FRANCISCO--While Nintendo's Wii continues to outpace expectations and certain games are making fortunes for their publishers, a strong argument can be made that the hottest segment of the video games industry is one that is still in its infancy: social games.

These titles, which are popping up by the bushelful on platforms like Facebook and MySpace, as well as on Apple's iPhone, are garnering user numbers that would previously have been thought impossible. And in a deep recession, when even the strongest console manufacturers and biggest game publishers are being forced to shut down projects and lay off workers, people have no choice but to sit up and take notice.

At the Game Developers Conference on Thursday, Kristian Segerstrale, the CEO and co-founder of PlayFish, one of the most successful publishers of social games, upped the ante, stating his case for how the mainstream video games industry can learn from his side of the business.

In his talk, "Five lessons from social games that matter to the rest of the games industry," Segerstrale argued that while the nature of the social games business differs significantly from that followed for many years by the more traditional, retail-oriented publishers, times are changing, customers' behaviors and expectations are shifting rapidly, and the winning model may well be the new one.

PlayFish's roster of games, including the mega-hit Who Has the Biggest Brain is illustrative of the popularity games can achieve on services like Facebook. Segerstrale said PlayFish has had 60 million players, averages about 25 million monthly users and 5 million daily players, and currently has 5 of the 10 most popular applications on Facebook. And by itself, Who Has the Biggest Brain has been played a total of 500 million times by 15 million people, he said.

With numbers like that, it's clear why Segerstrale feels he has some lessons to teach the rest of the games industry. And while the traditional retail games model has been relatively unchanged for decades and remains strong today, he said he sees signs that the Electronic Arts, Activisions, and Take-Twos of the world, not to mention the countless other game developers and publishers out there, may need to rethink their methodology.

One harbinger of that need for change is evident even within the traditional games business itself, he pointed out. He said that Nintendo established the Wii as a sleeper hit by exploiting a wide range of people's desire to be social with friends and family. And he explained that Nintendo itself is well aware of this, as evinced by ads for the Wii that show groups of friends playing gleefully. Yet the real estate in the ads devoted to showing the games themselves is minimal; it's the image of the social activity that sells the Wii.

"This is about you and your real-world relationships," Segerstrale said, "which is ultimately much more important than anything that happens between you and your screen...That's why you're playing. You're playing together, not because you're trying to beat the boss in level 10." … Read more

Video game publisher Take-Two Interactive Software posted a wider quarterly loss on Wednesday and forecast a sharp drop in sales revenue for the current quarter.

For the quarter that ended October 31, the company best known for its Grand Theft Auto franchise reported a net loss of $15 million, or 20 cents a share, compared with a net loss of $7.1 million, or 10 cents a share, a year ago. Revenue increased 11 percent to $323.4 million on the sales strength of its Midnight Club: Los Angeles, NBA 2K9, and Grand Theft Auto IV titles.

The company predicted … Read more

When Take-Two Interactive Software's executive chairman envisions future revenue for the video game industry, he sees microtransactions and downloadable content as the "biggest opportunity" and calls subscription revenue the "holy grail."

"The holy grail is taking a business, already a very large and successful business that's focused on packaged goods...and turning that into a subscription business or a semi subscription business where we have an ongoing relationship with consumers, giving them products that they want," Strauss Zelnick said Thursday at a BMO Capital Markets' conference in New York. "Who's … Read more

Electronic Arts posted a major loss on Thursday. According to the company, it realized a $310 million loss and will be forced to lay off 6 percent of its staff due to worsening financial conditions and bleak outlooks.

Of course, EA, as a public company, blames its results on economic factors and just about everything else, besides what it should really blame: itself. But the problem facing the video game industry isn't unique to EA. Each company in the market is facing the same problems, and they're all forced to blame it on ludicrous reasons.

But as anyone who follows the industry knows, the real reason behind poor performance is the general lack of innovation coming out of developer studios lately.

I don't think there's any debating the fact that innovation in the video game industry is practically nonexistent. Every time I turn around, there's another crappy first-person shooter hitting store shelves with the same basic mechanics and control scheme. Even better, there's always a new sports title out there to whet your appetite. But whatever you do, look past the same player models, and derivative gameplay, and look at the new enhancements made to this year's stadiums!

What a joke.… Read more

Much has been made about Apple's cash. The company, which operates with no debt in its financial structure, is one of the most financially sound organizations in tech, with $24.5 billion in cash on hand, even more cash than Microsoft.

But now that it has all that money, what should it do with it?

Some say Apple should simply hold on to the cash and be prepared for what could be a difficult few years, as the economy continues to feel the pressure of a credit crunch, while others think Apple should start spending while the targets are cheap and do what it can to expand its role in the industry.

I can't help but agree with those in the second camp. Why should Apple, one of the most profitable and powerful companies in the industry, sit on its hands while other companies with strong properties and technologies in their own right need to worry about the future? For the first time in recent memory, tech companies can be acquired for a relatively affordable price, and a company in the position that Apple is in needs to capitalize.

So what can it do? Quite a bit. Instead of spending all its time on cell phones, PMPs, and Macs, maybe Apple should try to become the company that offers products that tag along with you throughout the day. Or maybe Apple should get into the video game business and start solidifying its position in that market. Or maybe Apple should start putting real pressure on Microsoft and build an operating system that not even Ballmer & Co. can match.… Read more

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Despite a failed deal with Take-Two Interactive, and a Spore DRM backlash, Eidos Interactive signed an agreement on Monday with Electronic Arts announcing exclusivity to multiregional distribution and licensing rights to selected titles from the their catalog for EA Mobile.

Now, Eidos will provide licenses to EA across all existing mobile channels and mobile devices for four key titles: Tomb Raider Underworld, Just Cause 2, California Games X, and Minesweeper, with a future option on the mobile versions of the majority of Eidos videogames for three years.

According to a news release, Javier Ferreira (VP of European Publishing for EA … Read more