Take-Two Outlook Dims

Take-Two also announced that Lainie Goldstein, interim Chief Financial Officer, has been named to the CFO position. Goldstein had joined the company in 2003.

The company said it is in "active discussions" about "alternatives" for its accessories unit, Joytech, and distribution business, Jack of All Games -- two segments that analysts have long regarded as extraneous to the company's focus.

Take-Two said giving up its distribution business would help it focus on its publishing arm, which contributed 75% to total revenue in the quarter. The distribution business accounted for 25% of revenue in the second quarter.

That was, however, down by about 21% compared with the same quarter the year-before because of the decline of volume and average selling prices of older games, said Take-Two.

Sports-based games represented about 35% of Take-Two's publishing revenue in the second quarter. The company said it will no longer predict a specific time for profitability of the division and that it remains committed to the division. Earlier Take-Two had said it expects the sports division to be profitable in this year.

Take-Two also confirmed it will release its much-awaited game, Grand Theft Auto IV, in October as announced earlier. The game, claimed Take-Two, would help significantly boost sales of the lagging PlayStation 3 console from Sony(SNE Quote).