Take-Two Interactive forecast full-year revenue below analysts' estimates as it pushed the launch of its ''Red Dead Redemption 2'' game. Fred Katayama reports.
Take-Two Interactive is pushing back the release of its highly anticipated videogame "Red Dead Redemption 2" to spring 2018. And that's behind the company's full-year revenue outlook that was well below analysts' forecasts. Analysts expected the game to be one of the biggest releases this year, but the company says it needs extra time to ensure that the game delivers the best experience possible. Take-Two stock initially tumbled on the news, but then reversed course after at least two analysts said the outlook was not as bad as feared. Manhattan Venture Partners research head Santosh Rao: (SOUNDBITE) SANTOSH RAO, HEAD OF RESEARCH, MANHATTAN VENTURE RESEARCH (ENGLISH) SAYING: "These days you have to get it right. It's a big business. And you need some hits. And you need a hit every two years, three years, you need a big hit. And this is what they're doing. The first one was very good, so they need the second one to be as good or better." Take-Two is the company behind gaming hits such as "Grand Theft Auto," "Mafia," and "NBA." Its profit and revenue blew past analysts expectations for the quarter ending in March. The company expects net sales to top $2.5 billion in its fiscal year starting April 2018 driven by "Red Dead Redemption 2" and one new title.