Put to rest fears Rockstar Studios and the Houser Brothers — the dudes behind the wildly successful Grand Theft Auto series — would defect from their current home at Take-Two Interactive (TTWO) to another publisher. The duo today re-upped their contract with Take-Two, originally set to expire in February of next year, until Jan. 31, 2012.
Gamasutra: Alongside the agreement, Take-Two will restructure the way it shares profits with Rockstar going forward, as part of a new incentives and compensation agreement with the studio.
Unspecified “key Rockstar Games team members” will also form their own company to develop “certain new intellectual properties,” exclusively published and funded by Take-Two.
Meanwhile, the rest of Take-Two’s business is not looking good.
Reuters: The company also reported its fourth-quarter net loss more than doubled, and it missed the average analyst target.
Take-Two Chairman Strauss Zelnick told Reuters the company “witnessed significant softness” in store sales. That was a shock for investors after total video game U.S. sales rose 10 per cent in November, indicating the industry was weathering the downturn better than most.
Take-Two expects profit to range between nil and 20 cents per share for the year ending in October 2009, significantly missing the average analysts’ estimate of $1.21 per share.
The company forecast first-quarter revenue between $175 million and $225 million, below Wall Street estimates of $311 million, as per Reuters Estimates.