Take-Two Struggles to Stay in the Game

More Attractive With Age

But with Grand Theft Auto IV inching closer to the finish line, the stock could go higher, says a portfolio manager who did not want to be named.

"The concern that Grand Theft Auto IV is delayed is just short term," says the portfolio manager, who does not currently hold shares of Take-Two. "The game will release to an even larger installed base of consoles next year, which means cash flows only got pushed out from this year to the next."

Analysts upgrades are slowly flowing in, too. Take-Two was upgraded Wednesday to a buy from hold by an analyst at Kaufman Bros. on hopes that it will make an attractive buyout target as consolidation hits the games sector.

Meanwhile, it's clear the market is betting Take-Two's future is as uncertain as its finances. That's evident in the level of short interest as a percentage of all shares outstanding, which stands at a whopping 31.6% for Take-Two.

By contrast, the level of short interest is 3% for Activision(ATVI Quote), 3.7% for Electronic Arts(ERTS Quote), 15.7% for smaller rival THQ(THQI Quote) and 22.7% for Midway(MWY Quote).