Take-Two has long faced criticism for its inability to produce a string of hits and its excessive dependence on a single, best-selling game series,
Grand Theft Auto. Not surprisingly, the company's
This sounds like a reasonable plan: Sports games have a strong fan base, and Take-Two has been working on building up the division as part of its diversification plan.
But scratch deeper, and some analysts say that Take-Two may just be setting itself up for another big mistake. Sports games were about 20% of the company's publishing revenue and pulled in about $150 million in 2006, nearly double the previous year's take.Still, 2K Sports continues to lose money, and the road ahead seems rough. In an update to analysts and investors earlier this month, Strauss Zelnick, Take-Two's new chairman, warned that the company's