Yesterday Take-Two Interactive Software, Inc. (NASDAQ:TTWO) closed up 1.14% at $10.69 per share, retaining some of the momentum after the Jay-Z bounce. Meanwhile, troubled competitor THQ, Inc. closed at $4.11 per share.
Take-Two presented a dismal earnings report for the quarter ended June 31. The game maker reported EPS at -$1.16, missing estimates by 78.50%. TTWO made a timely
announcement that it had partnered up with Jay-Z for NBA 2K13. Jay-Z, one of the most successful hip-hop artists is an executive producer for the upcoming basketball title, set for release on Oct. 2, 2012.
Another game by TTWO will be released in the coming days. Borderlands 2 is a highly-anticipated sequel, but it’s too early to say whether it will have a significant impact on the financial situation of TTWO. Gameplay videos suggest players who enjoyed the original title will also enjoy the second part.
Yesterday’s close was one of the few positive ones for THQ and it was probably the result of the announcement that Darksiders 2 will be released for the Wii U? system, taking advantage of the innovative GamePad.
THQ Inc. released Darksiders 2 on Aug. 14, but that hasn’t been enough to revitalize the stock. Things at the company aren’t goint well. Back in July THQI had to resort to a 1 for 10 reverse split just to retain its Nasdaq listing. The split brought the price per share up to around $6, but two months later its about 30% down.
August was a bad month for game makers with retail sales dropping. This may prove to be a critical time separating those who can survive from the rest.