Take-Two Interactive Software, Inc.: SWOT Analysis & Company Profile by BusinessReview

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									Take-Two Interactive Software, Inc.

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Take-Two Interactive Software, Inc.: SWOT
Analysis & Company Profile


Reference code: BRTC209CP10-Q4

Published: Feb 2010




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Take-Two Interactive Software, Inc. - SWOT Profile                                  Page 1
Take-Two Interactive Software, Inc.

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Take-Two Interactive Software, Inc. - Company Overview

Take-Two Interactive Software, Inc. (Take-Two) is one of the global leading publishers and developers of interactive
entertainment software. The company publishes, develops and distributes interactive entertainment software, hardware
and accessories globally. The company operates its business through two segments, namely, publishing and distribution.
The hardware platforms used by the company include Playstation, Playstation2 and PlayStation3 computer entertainment
systems of Sony, PSP (PlayStationPortable) system, Xbox 360 and Xbox video game and entertainment systems from
Microsoft, Nintendo Wii, Nintendo GameCube, and Nintendo handheld devices. Some of the wholly owned labels of Take-
Two are Rockstar Games, 2K Games, 2K Sports and 2K Play. The company principally operates in the US, Canada, the
UK, Continental Europe and Asia Pacific. Take-Two is headquartered in Broadway (New York), the US.


Financial Performance

The company reported revenue of US$359.23 million during the fiscal year ended 2010. The company's revenue declined
at a compound annual rate of 45.9% during the period 2008-2010 with an annual decline of 48.76% over fiscal year 2009.
During the fiscal year 2010 its operating margin was -3.0% as against the operating margin of -17.1% in fiscal year 2009.
During the fiscal year 2010 the company registered a net margin of -8.0% as against the net margin of -20.0% in the fiscal
year 2009.




Take-Two Interactive Software, Inc. - Key Facts

Take-Two Interactive Software, Inc., Key Facts

                                  622 Broadway, New York, New
                                                                    Ticker Symbol, Stock
Corporate Address:                York (NY), 10012, United States Exchange
                                                                                                 TTWO (NASDAQ)




Telephone                         + 1 646 5362842                   No. of Employees             2,202



Fax                               + 1 646 5362926                   Financial Year End           March



URL                               www.take2games.com                Revenue (in USD Million)     359.23


                                  Technology and
Industry
                                  Communications


Locations                         New Zealand, Netherlands, Switzerland, United Kingdom, Canada, United States

Source: Annual Report, Company Website, Primary and Secondary Research




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Take-Two Interactive Software, Inc. - SWOT Profile                                                               Page 2
Take-Two Interactive Software, Inc.

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Take-Two Interactive Software, Inc. - Business Description

Take-Two Interactive Software, Inc. (Take-Two) develops and distributes interactive entertainment software, hardware
and accessories. The company markets and publishes software titles for gaming and entertainment hardware platforms.
Take-Two's hardware platforms include PSP (PlayStationPortable) system, Xbox 360 and Xbox video game and
entertainment systems from Microsoft; Playstation, Playstation2 and PlayStation3 computer entertainment systems of
Sony; Nintendo Wii, Nintendo GameCube, and Nintendo handheld devices. The company also develops software games
that can be run on a PC. The company publishes and develops products through its wholly owned labels Rockstar
Games, 2K Games, 2K Sports and 2K Play.

Until the fiscal year ended October 31, 2009, the company operated its business under two reportable segments, namely,
Publishing segment and Distribution segment. Later, the company changed its fiscal year end from October 31 to March
31, and the fiscal year 2010, was reported for five months period. Also, the company’s operations are classified under
single reportable segment, Publishing segment. In February 2010, the company sold assets of its Jack of all Games third
party distribution business.

Rockstar Games (Rockstar), the publisher of the company’s blockbuster Grand Theft Auto franchise, is focused on
creating content and groundbreaking entertainment. Rockstar is known for developing titles in multiple genres such as
Midnight Club, Max Payne, Rockstar Games Presents Table Tennis, The Warriors, Red Dead Revolver and Bully.
Rockstar publishes episodic content for Grand Theft Auto IV exclusively on Xbox Live, Microsoft's online entertainment
and gaming network.

The titles developed by third-party are published by its 2K Games label. The 2K Games has rights to publish
entertainment properties including The Elder Scrolls IV Oblivion, The Darkness, Ghost Rider, Fantastic Four, Rise of the
Silver Surfer, The Sid Meier’s Railroads!, and Sid Meier’s Pirates!. BioShock and Civilization franchises are the internal
development studios of the company where it develops software titles for its 2K Games.

Take-Two major League Baseball 2K series, NBA 2K series, NHL 2K series, College Hoops 2K series and Top Spin
tennis series are developed through its internal development studios. 2K Sports label has sports league licenses,
including long-term, third-party exclusive licensing relationships with major League Baseball Properties, the major League
Baseball Players Association and major League Baseball Advanced Media.

The titles of casual and family friendly games are developed and published under the label of 2K Play. While the majority
of its 2K Play titles are developed by third-party developers. The company has also developed software titles for its 2K
Play label internally, such as Carnival Games and the Deal or No Deal series. Take-Two has entered into handheld and
console video game licensing agreement with Nickelodeon.

The company’s research and development (R&D) department is engaged in product development and product
enhancement. The company employed 1,641 people in its R&D activities as of March 31, 2010. During the fiscal year
ended March 31, 2010 (five months period), it invested US$25.3 million towards its research and development activities.

Geographically Take-Two operates through five segments, namely, United States, Canada, United Kingdom, Continental
Europe, and Asia Pacific and other.




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Take-Two Interactive Software, Inc. - SWOT Profile                                                                Page 3
Take-Two Interactive Software, Inc.

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Take-Two Interactive Software, Inc. - Major Products and Services

Take-Two Interactive Software, Inc. is a worldwide publisher, developer and distributor of interactive entertainment
software, hardware and accessories. Key products of the company include the following:

Take-Two Interactive Software, Inc., Major Products and Services
Products:

Grand Theft Auto,Liberty City Stories,San Andreas,Vice City

Max Payne 2: The Fall of Max Payne

Midnight Club 3

Red Dead Revolver

Sid Meier's Civilization IV

The Warriors

24: The Game

BioShock

Call of Cthulhu: Dark Corners of the Earth

Champions Online

CivCity: Rome

Close Combat: First to Fight

Conflict: Global Terror

Dungeon Siege II: Broken World

Dungeon Siege: Throne of Agony

Family Guy

Fantastic Four: Rise of the Silver Surfer

FireFly Studios' Stronghold 2

Ghost Rider

Major League Baseball

MLB Stickball

NBA 2K9

NHL 2K9

MLB Power Pros 2008

Top Spin 3

Don King Prizefighter

MLB 2K8 Fantasy All-Stars

MLB 2K8

College Hoops 2K8

All-Pro Football 2K8

The BIGS
Source: Annual Report, Company Website, Primary and Secondary Research




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Take-Two Interactive Software, Inc. - SWOT Profile                                                                 Page 4
Take-Two Interactive Software, Inc.

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Take-Two Interactive Software, Inc. - History

Take-Two Interactive Software, Inc., History

    Year                   Event type                                               Description


   2009      Divestiture                        Take-Two sold its Jack of All Games Distribution Business to SYNNEX Corporation.


   2008      Acquisitions/Mergers/Takeovers The company acquired Mad Doc Software LLC.


   2008      New Products/Services              The company released Dora the Explorer: Dora Saves the Snow Princess.


   2008      New Products/Services              The company released the Japanese edition of Grand Theft Auto IV.


   2007      Contracts/Agreements               The company signed a console video game licensing agreement with Nickelodeon.


   2006      Acquisitions/Mergers/Takeovers The company acquired Irrational Games.


                                                The company signed an agreement with Sony Pictures to publish and distribute a video
   2005      Contracts/Agreements
                                                game based on the controversial ’The Da Vinci Code’ feature film.


   2005      Acquisitions/Mergers/Takeovers The company acquired Gaia Capital Group.


   2005      Acquisitions/Mergers/Takeovers The com
								
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