Take-Two Chairman Puts Stability First

Though there are no plans currently for headcount reductions, it is a possibility, he says.

"We will be candid with people about that," he says. "Running the company in an efficient manner is important to us and we think running a lean corporate operation will help shareholders."

Meanwhile, Take-Two unveiled the next installment in its Grand Theft Auto game series, releasing a trailer for the much-awaited Grand Theft Auto IV game late Thursday.

The franchise has proven to be a huge hit for Take-Two, but it has also raised questions as to whether Take-Two can develop a larger and more varied pipeline.

But "one-trick pony" criticism may just be the unintended consequences of having an unexpectedly huge blockbuster, says Zelnick. "Having one of the most important franchises in the video game business today creates revenue concentration," he says.

Take-Two will have to build out other businesses and the company is likely to be more aggressive around its sports division, 2K Sports, says Zelnick. "I think 2K Sports is a great idea," he says.

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