Take-Two, the company behind the mega-popular brand Rockstar Games, is facing some troubles. Although the company has greater revenues this year than last, Take-Two is facing some serious issues. Firstly, the company has "received additional grand jury subpoenas issued by the District Attorney of the County of New York requesting documents ... regarding stock options and other equity based compensation." Also, Wall Street analysts think that the stock for the company is overvalued: "the current analyst consensus EPS estimates for its third quarter, and revenue and EPS [earnings per share ]estimates for its fourth quarter are too high."
With plummeting stock prices
, Take-Two looks towards the PSP for solace. The company speaks of the upcoming Grand Theft Auto: Vice City Stories
and "a Rockstar PSP title based on a premier brand out of the fourth quarter" as upcoming releases that should more than move a few units. The company hasn't revealed what the mystery PSP title is, but it appears that all bets are on Sony's handheld for the company now.
TTWO shares drop on earnings warning, stock option investigation