Take-Two's Tonic

Despite the outcry from critics, Take-Two is unlikely to move away from aggressive video games.

"Take-Two's content is what it is," says Lazard Capital's Sebastian, "and I don't think a new management team will change that formula."

It's ingrained into the culture at the company. "The team at Rockstar [the development studio of Take-Two] thinks gory is cool," says Pachter.

Take-Two's new management would have to find a way to restrain the people at Rockstar while not limiting their creative process. That is likely to be a big challenge irrespective of whether the company remains public or is bought out.

Riding the Console Cycle

That Nintendo's Wii has clearly emerged as the frontrunner in the latest console cycle won't matter much for Take-Two. The company has just one game, Manhunt 2, planned for the release on the Wii in summer.

That lone game, too, is as unlikely a choice for the Wii, which has found itself a favorite among kids and casual gamers. Manhunt 2 is the sequel to Manhunt, a game in which players need to "execute" gang members using a variety of weapons.

For Sony's(SNE) PlayStation 3, Take-Two plans to release Grand Theft Auto IV in October and has two sports games currently available.

Grand Theft Auto IV is likely to be a hit, but in the sports-games arena, Take-Two is competing against industry giant Electronic Arts(ERTS), which has the lion's share of that market.

"Take-Two already has most of the addressable market for sports games it can capture," says Pachter.

Though Lazard Capital's Sebastian says there's still room for Take-Two to grow in the sports category, the company has yet to prove that it is not a one-trick pony and can go beyond the Grand Theft Auto series.

Proving this will take more than a rearrangement of the chairs at the top. Take-Two will need to redefine itself, find its niche in the video-game business and stick to it.

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