Published on December 10th, 2007 | by Deejay Knight, Editor/Founder4
RockStar in Troubles without Grand Theft Auto IV?
Apparently, Take-Two’s financials were based on having Grand Theft Auto IV out the door this fall. Doubts have come up as to whether or not they can stay afloat without their flagship title on shelves…
But the delay in the mega game’s release has hurt Take-Two financially as it burns through cash and attempts to cut costs by restructuring its operations.
Take-Two had $61.62 million in cash at the end of July, down from $138.15 million at the end of January.
Last month in a filing with the U.S. Securities and Exchange Commission, the company disclosed it had increased its five-year revolving credit facility to $140 million from $100 million and secured it using the company’s assets in both the U.S. and Europe.
With its current burn rate, it could be drawing upon its credit facility in the first quarter by January or February, analysts say. That would make the timely release of Grand Theft Auto IV critical to the company’s survival.
After reading that, it might make some of us a bit nervous about whether or not GTA will hit shelves finished. I’m not too worried about it, though. Mostly because it’s GTA IV we’re talking about.
If it comes through on even a small bit of the promise we’re expecting and they continue with the amazing storytelling they’ve been doing for a couple of iterations now, there’s not a gamer out there that’ll be all that disappointed.
Unless, of course, they don’t have any multiplayer gameplay. I can see that causing a couple riots!
Take-Two Struggles to Stay in the Game [The Street]