Take Two wie geht`s weiter? - 500 Beiträge pro Seite

[gaptrader]

habe ein wenig recherchiert, konnte aber bei Blommberg, Yhoo, Streetcom keine neuen news finden. Wann der Handel wieder aufgenommen wird, steht in den Sternen.
Im Yhoo-Board geht`s drunter und drüber. (Wie bei uns Meta-box ect).
Hat von Euch jemand irgendwelche news???
Wäre nett, wenn er sie hier reinstellen könnte.

[Privatier1]

kann auch nichts deutliches finden ! Ist aber der 400% Tip von Förtsch !!!
Viel Glück und Erfolg wünscht

[FunMan2001]

Take 2 Interactive hat die Bilanzkonferenz zum Jahresabschluss
2001/02 auf unbestimmte Zeit verschoben. Dies hat nun
Konsequenzen:
Der Handel mit Take 2-Aktien an der Nasdaq wurde vorläufig
ausgesetzt. Für eine Rückkehr auf das Parkett verlangt die
Börsenaufsicht SEC die baldige Vorlage der Bilanz.

VORSICHT!

Falle 1:
Kurzfristig wird man mit Take Two Probleme haben.
Die Jahreszahlen werden sehr schlecht ausfallen.
Dafür ist das Weihnachtsgeschäft bombastisch gelaufen.
Das ist jedoch nicht in den noch zu verkündenden
Jahrezahlen enthalten. Arrrrgh !

Falle 2:
Es sind sehr viele SHORT-Positionen auf Take Two.
Um diese Abzubauen, werden die Shortys versuchen
den Kurs nochmal nach unten zu drücken.

Ich habe bereits im Januar verkauft.

Gruss,
FunMan

[FunMan2001]

Take 2 legt Geschäftszahlen vor

Take Two Interactive Software Inc. hat jetzt endlich
sowohl die korrigierten Ergebnisse für das Fiskaljahr
2000 und die ersten neun Monate 2001 als auch für das
Gesamtjahr 2001 vorgelegt. Für das Jahr 2000 musste der
Umsatz von 387 Mio. Dollar auf 364 Mio. Dollar reduziert
werden. Der Nettogewinn ging von rund 25 Mio. Dollar auf
6,4 Mio. Dollar zurück ...

(Quelle: MCV Online, 14.2.2002)

[thebull 2]

Thursday February 14, 6:29 pm Eastern Time

Press Release

SOURCE: The Nasdaq Stock Market

Nasdaq Schedules Resumption in Trading in Take-Two Interactive Software,
Inc.

WASHINGTON, Feb. 14 /PRNewswire/ -- The Nasdaq Stock Market® announced today that the trading in Take-Two Interactive Software, Inc. (Nasdaq:
TTWO - news) is scheduled to resume on Friday, February 15, at 10:00 a.m., Eastern Time.

For additional news and information about the company, please contact the company directly.

For more information about Nasdaq trade halts, visit http://www.nasdaqtrader.com or the Nasdaq Newsroom(SM) at http://www.nasdaqnews.com and click on
``Trade Halts.``

SOURCE: The Nasdaq Stock Market



gruss
tb 2

[thebull 2]

Thursday February 14, 7:14 pm Eastern Time

Take-Two remains halted, company apologizes

(UPDATE: Updates with resumption of trading)

By Ben Berkowitz

LOS ANGELES, Feb 14 (Reuters) - Shares of Take-Two Interactive Software Inc. (NasdaqNM:TTWO - news) remained halted on the Nasdaq on Thursday,
even as the video game publisher repeated its higher guidance for 2002 and said had it had put tighter financial controls in place after admitting to overstating past
sales.

However, after the close of trading on Thursday, the Nasdaq said trading in the shares, which have been halted
since Jan. 22, will resume at 10 a.m. ET on Friday.

Even as it has struggled with an internal financial probe and an investigation by securities regulators, Take-Two`s
games, including ``Grand Theft Auto 3`` and ``Max Payne,`` have dominated the sales charts. The mixed picture
has divided analysts and investors on the company`s prospects.

``It`s definitely one of the toughest situations out there,`` said Heath Terry, an analyst at Credit Suisse First
Boston who follows the company. ``The question is how much do you discount the future because of the past?``

Take-Two shares were halted on Jan. 22 after the company postponed the announcement of its fiscal
fourth-quarter results because it was still reviewing a restatement of its seven prior quarters because of concerns
over revenue accounting. The shares last traded at $18.56.

US Bancorp Piper Jaffray analyst Tony Gikas said in a note to clients on Thursday that the stock could open at least 20 percent lower when it resumes trading. He
also cut his rating on the shares to Outperform from Strong Buy.

The company restated seven quarters of results on Tuesday and released fourth-quarter results on Wednesday. The company also said it had received a ``formal
order of investigation`` from the Securities and Exchange Commission into the way that it booked sales and treated game returns from some smaller retailers.

``We sincerely regret the company`s need to halt trading in our stock,`` Kelly Sumner, Take-Two`s chief executive, said on a conference call Thursday morning.
``We apologize for the events that led to the restatement of our financial results.``

Sumner declined to say when the company received the formal SEC investigation order, but said that previous contact from securities regulators had partly prompted
the forensic review of its earnings for fiscal 2000 and 2001 announced in December.

RESTATES 2000 LOWER, 2001 HIGHER

Take-Two first said on Dec. 17 it would have to restate its results because of evidence products that had been returned to the company had been improperly
booked as revenue.

New York-based Take-Two lowered its fiscal 2000 revenues to $364 million from $387 million and its fiscal 2000 earnings per share to 23 cents from 88 cents.

For 2000, the company said it eliminated $3.8 million in net sales for unshipped products and $2.6 million in license revenue, and took a charge of $19.2 million for
losses incurred by an affiliate.

The company reported increased revenues for the first three quarters of fiscal 2001, through July 31, of $328 million, up from the previously reported $309 million.
It narrowed its reported loss per share in the period to 10 cents from 11 cents.

For the first three quarters of 2001 the company said it added net sales of $3.8 million that had been improperly recognized in the fourth quarter of 2000.

``We have a much better handle on our shipping and returns and our receipt by customers,`` Cindi Buckwalter, the company`s vice president of finance told analysts.

On Wednesday the company said its chief financial officer, Albert Pastino, had resigned after two months on the job for what Take-Two called personal reasons. He
was replaced by Karl Winters, a former Coopers & Lybrand auditor.

For the fourth quarter ended Oct. 31, the company posted a net loss of $5.3 million, or 15 cents per share, compared with a net profit of $8.7 million, or 27 cents
per share, in the year-earlier period. Sales were $123.3 million, up from $108.1 million a year earlier.

In December, the company said it expected to report fourth-quarter sales of $138 million to $140 million and a net profit of 1 cent to 4 cents per share.

DOUBLE-TAKE ON 2002

Despite the mixed results for the last two years, Take-Two raised its guidance for fiscal 2002 on Wednesday on the blockbuster sales of ``Grand Theft Auto 3`` and
``Max Payne.``

The company expects to report $280 million in net sales and profit of 90 cents a share in the first quarter ended Jan. 31. For the current quarter, its fiscal second, it
expects sales of $125 million, with a profit of 23 cents a share.

For the full year, the company expects sales of $660 million and earnings per share of $1.63.

The average estimates of seven brokers surveyed by research firm Thomson Financial/First Call had been for first-quarter earnings of 70 cents per share,
second-quarter earnings of 13 cents and full-year earnings of $1.32.

Take-Two is also expected to benefit from the launch of ``State of Emergency`` for Sony Corp.`s PlayStation 2 this weekend.

Paul Eibeler, Take-Two`s president, said on the call there could be upside to the full-year guidance if ``Duke Nukem` Forever`` for the PC launches in fall or early
winter, as expected.


gruss
tb 2

[thebull 2]

Take-Two to resume trading (TTWO) By Michael Baron
Take-Two Interactive Software (TTWO) is saying that its common stock will resume trading on the Nasdaq exchange at
10:00 am EST. "We wish to once again extend our most sincere apologies to our shareholders for any inconvenience they
have been caused due to the halt in trading of our Common Stock," said Paul Eibeler, the company`s president, in a press
release. "The past several months have been a difficult time for Take-Two and its management, but we have worked hard
to restate our historical financials, as well as continue to build for what promises to be a very bright future utilizing the
valuable lessons we have learned." Trading in Take-Two shares has been halted since Jan. 22 after the company delayed
reporting financial results. On Tuesday, the company restated several quarter of results, and announced the resignation of
its chief financial officer. Yesterday, Take-Two reported fourth-quarter and fiscal 2001 results, named a new CFO, and
offered an outlook for 2002.

gruss
tb 2

[gaptrader]

http://www.pinksheets.com/quote/news.jsp?url=fis_story.asp%3…

[gaptrader]

New titles drive strong video game sales - report
20 Feb 2002, 4:03pm ET

- - - - -
LOS ANGELES, Feb 20 (Reuters) - The release of two new hit games has boosted U.S. video game sales in the first weeks of the new year, traditionally a slack time after the year-end boom season, according to a brokerage survey released on Wednesday.

The signs of strong demand come after a record year in which U.S. video games and consoles reached a record $9.4 billion, spurred by the launch of three new game machines.

Those game consoles, which had been sold out at many retailers late last year, are now in stock at more locations, according to the Goldman Sachs Gaming Software Survey.

Only 51 percent of retailers reported being sold out of Nintendo Co. Ltd.`s (OSA:7974) GameCube and 38 percent out of Microsoft Corp.`s (NASDAQ:MSFT) Xbox, the survey said.

Both the GameCube and Xbox launched in mid-November. At the last survey, in mid-December, 77 percent of retailers were sold out of Xbox and 69 percent were out of GameCube.

The only console in increasing short supply was Sony Corp.`s (TOKYO:6758) PlayStation 2, with 13 percent of retailers out of stock in the new survey, up from 11 percent at the last one.

Sony sold more than 8 million PS2s from its Nov. 2000 through Dec. 31, while Microsoft says it sold 1.5 million Xboxes through year-end, and Nintendo says it sold roughly the same as Microsoft through December.

Goldman Sachs said anticipation for games like Take-Two Interactive Software Inc.`s (NASDAQ:TTWO) "State of Emergency," which takes place during an urban riot, and THQ Inc.`s (NASDAQ:THQI) "WWF Raw," a wrestling game, had helped overall sales to be "on target or slightly ahead of expectations."

The survey said said that one retailer sold 100 copies of "WWF Raw," an exclusive Xbox title, within days of its launch last week, while another said they sold 80 copies the first day. The brokerage also said retailers were near-unanimous in calling "Raw" a better game than THQ`s "WWF Smackdown" for PS2.

Another retailer told the brokerage she had already sold out her 80 copies of "State of Emergency," which launched last week.

Goldman also said many retailers consider the game a natural follow-on to Take-Two`s "Grand Theft Auto 3," another violent game that was the best-selling title of 2001.

The brokerage surveyed 62 retailers in New York, Los Angeles, Chicago, Denver, Dallas, Salt Lake City and San Francisco between Feb. 12 and Feb. 15. Among those surveyed were Wal-Mart Stores Inc. (NYSE:WMT) and Best Buy Co. Inc. (NYSE:BBY)

Copyright 2002, Reuters News Service

[thebull 2]

Thursday February 28, 5:19 pm Eastern Time

Take-Two partially restates 2001 results again

LOS ANGELES, Feb 28 (Reuters) - Video game publisher Take-Two Interactive Software Inc. (NasdaqNM:TTWO - news)
said on Thursday it would restate three quarters of its fiscal 2001 results because of math mistakes after restating almost two years
of results earlier this month.

New York-based Take-Two, which restated all of fiscal 2000 and the first three quarters of fiscal 2001 to fix problems related to revenue recognition, said it would
have to restate the last three quarters of fiscal 2001 in an amended annual filing with the U.S. Securities and Exchange Commission.

Take-Two said it would decrease its fiscal second-quarter net loss by $169,000, to $11.4 million, or 35 cents per share, from a previous 36 cents per share.

It decreased third-quarter net income by $794,000, wiping out its profit and giving it a loss of $665,000, or 2 cents per share, from a previous break-even result.

For the fourth quarter, which the company recently reported and did not restate, it decreased its net loss by $625,000, to $4.7 million, or 13 cents per share, from a
previous 15 cents per share.

The company, whose hit game ``Grand Theft Auto 3`` has topped sales charts for nearly four months, said the revisions, attributed to miscalculations, did not involve
the application of accounting principles and would not affect the fiscal 2001 full-year results.


gruss
tb 2

[gaptrader]

Thursday March 14, 6:46 pm Eastern Time
Take-Two reports 1st qtr profit, ups guidance
(UPDATE: Adds details, analyst comment, byline)

By Ben Berkowitz

LOS ANGELES, March 14 (Reuters) - Video game publisher Take-Two Interactive Software Inc. (NasdaqNM:TTWO - news) on Thursday reported a more than four-fold gain in its fiscal first-quarter profit and raised its guidance for the year, as it works to put an accounting scandal behind it.
ADVERTISEMENT



Shares in Take-Two made an about-face in after-hours trade, rising as much as 58 cents to $22.58 before falling 34 cents to $21.66 compared with a Nasdaq close of $22.

New York-based Take-Two, publisher of the smash hit game ``Grand Theft Auto 3,`` reported a net profit for the quarter ended Jan. 31 of $34.8 million, or 92 cents a share, compared with a profit of $8.2 million, or 25 cents a share, in the year-earlier period.

The average estimate of 11 brokers surveyed by Thomson Financial/First Call had been for a profit of 91 cents a share.

Sales rose to $283 million from $158 million in the year-earlier period.

Take-Two also raised its sales guidance for fiscal 2002 to $683 million and earnings per share of $1.67, and increased second-quarter guidance to $145 million in sales and earnings of 25 cents a share.

The First Call estimates had been for earnings of 24 cents for the second quarter and $1.62 for the year.

``They`re coming up to where I think they`re going to end up,`` said Michael Pachter, an analyst with Wedbush Morgan Securities who follows the sector. ``It`s about time that the rest of Wall Street ... came up to really what`s going to happen.``

STOCK STRONG DESPITE ACCOUNTING ISSUES

Despite an ongoing regulatory probe of the company`s accounting, its shares have gained 36 percent this year, the best performance in the sector by a wide margin, and it is now the fourth-largest game publisher by market capitalization.

In mid-February Take-Two restated seven quarters of results, through the third quarter of fiscal 2001, to correct accounting irregularities related to revenue recognition.

Then in late February it restated the last three quarters of fiscal 2001 to address earlier math errors. The company is also under investigation by the U.S. Securities and Exchange Commission, and is on its third chief financial officer in four months.

On a conference call to discuss results, Kelly Sumner, the company`s chief executive, said Take-Two has asked its auditor, PricewaterhouseCoopers, to expand the scope of its regular reviews of the company`s quarterly results.

Separately, the company said it added Todd Emmel to its board. Emmel, a first vice president at Ambac Assurance Corp., will chair the company`s audit committee.

Also on Thursday, an Italian subsidiary of the company was sued by French publisher Ubisoft for allegedly producing pirate copies of Ubisoft`s ``Tom Clancy`s Rainbow Six: Rogue Spear,`` which follows a similar suit Ubisoft subsidiary Red Storm has pending against Take-Two in Great Britain.

Take-Two executives said the company believed the suits had no basis and promised to fight them in court.

``GTA3`` A MAJOR PART OF QUARTER

Take-Two`s ``Grand Theft Auto 3`` for Sony Corp.`s PlayStation 2, which was expected to be successful, ended up being the best-selling game of 2001, with an iron grip on the top of the sales and rental charts over the last three months.

The game made up 41 percent of the company`s total sales for the quarter, Take-Two said.

The company has also seen strong sales in the last few months with ``Max Payne`` for PS2, PC, and Microsoft Corp.`s (NasdaqNM:MSFT - news) Xbox, and ``State of Emergency`` for PS2.

The company said it will release a version of ``State of Emergency`` for Xbox this fall or winter, the first time it has put a timetable on that version of the game. It also said ``GTA3`` for the PC will move to a third quarter release, in May, from the previous April launch plan.

All three titles are rated ``M,`` or ``Mature`` by the Entertainment Software Rating Board for intense violence, including rioting in ``State of Emergency`` and the ability to run over pedestrians with a car in ``GTA3.``

The company has largely declined to discuss its strategy of relying more heavily on mature-rated games, though some industry watchers expect it could start a trend among other publishers of increasingly adult-targeted games.

[FunMan2001]

Heute beginnt die weltgrösste PC- & Videospiele-Messe,
die E3 in Los Angeles. D.h. die Aktien der
PC- & Videospiele-Hersteller stehen die nächsten Tage
im Rampenlicht der Presse.

Die Aktien der US-Games-Hersteller erreichen einen ATH
nach dem anderen und das nicht ohne Grund: Die Games-
Branche hat umsatzmäßig die Film-Branche längst hinter
sich gelassen.

Ich habe mir gerade aktuell zur Messe wieder einmal
die Aktien von TAKE TWO INTERACTIVE ins Depot gelegt.
Die haben mit ihrem fantastischen Spiele-Portfolio enormes
Potenzial. Charttechnisch sind wir an der Unterkante
eines schönen Aufwärtstrendkanals angelangt.
Idealer Einstiegspunkt.

Have fun!
Grüsse,
FunMan

[FunMan2001]

Aktuelle News zu Take Two:

Der Megaseller auf PS2, Grand Theft Auto 3, wird nun seit
20.Mai in der PC-Variante ausgeliefert. Da erwarte ich
sehr hohe Verkaufszahlen, da GTA3 für den PC zusätzlich
eine Mehrspieler-Version für LAN und Internet enthält.

Take-Two hat nun offziell bestätigt, dass Remedy
Entertainment mit der Entwicklung von "Max Payne 2"
begonnen hat.

Etliche Umsatzbringer hat Take Two für dieses Jahr in
seiner Pipeline, u.a. die potenziellen Hittitel:

- Hidden & Dangerous 2
- Mafia
- Duke Nukem Forever

Take Two macht echt fun!
Grüsse,
FunMan

[FunMan2001]

Gestern empfohlen und heute um 4,6% gestiegen.
Die nächsten E3-Messetage müssten einen weiteren
Aufwärtsschub bringen.

Take Two macht weiterhin fun!
Grüsse,
FunMan

[FunMan2001]

Games-Industrie in den USA wächst gewaltig

Das Marktforschungsunternehmen NPD Group hat zur E3-Messe
die neune Zahlen des 1. Quartals 2002 vorgelegt.
Demzurfolge konnte die US-Industrie einen Umsatz von 1,9 Mrd.
Dollar im 1.Q/2002 erwirtschaften - das sind +20%
gegenüber dem Vorjahresquartal. Als Topseller in diesem
Quartal erwies sich GTA3 für die PS2, der Umsatzbringer
für Take 2 Interactive.

(Quelle: NPD FunWorld)

[gaptrader]

FunMan

wirklich toll T2, minus 30% in 4 Tagen

[schach8]

@gaptrader

bin auch etwas verzweifelt und habe keine Ahnung was da wieder los ist. Aber vielleicht sind doch wieder die Shorties in den Wert verstärkt zurückgekehrt und haben die nicht ganz so guten Aussichten für das nächste Quartal genutzt. Wenn ich jedoch den Quartalsbericht richtig verstanden habe, erwartet man zwar für das nächste Quartal nur 100 Mio umsatz und 0,07USD Gewinn, hat aber die Erwartungen für das Gesamtjahr mit 1,68 nach zuvor 1,67 sogar noch leicht erhöht. Dies würde beim momentanen Kurs ein KGV von 11 bedeuten, was mir nahezu lächerlich vorkommt. Ein KGV von 20 wäre bei diesen Wachstumsraten noch billig.
Voraussetzung: Die Prognosen für das >>Gesamtjahr werden eingehalten.
Jedenfalls bleibe ich erst mal dabei. Notbremse wird erst später gezogen.

[Guru-Schreck]

Der Ausverkauf an der Nasdaq fehlt noch immer also gehts weiter abwärts.

[gaptrader]

schach8,

ja ja die shortis, sie bashen auf dem yahoo-board, daß einem übel wird. Solange das Gespenst "SEC" über T2 schwebt,
bleibt es weiterhin schwierig, erst wenn T2 von der SEC befreit wird, gehts richtig los. Die Aussichten für das 3.Q
hat den Kurs natürlich belastet. Sollten die Prognosen fürs Gesamtjahr 31.10.2002 eingehalten werden, dann gehts den Shortis an den Kragen und das wissen sie auch, vorausgesetzt, daß die SEC in der Zwischenzeit keinen Strich durch die Rechnung macht. Vor dem habe ich persönlich den größten Bammel.


Guru-Schreck,

die Vergangenheit hat gezeigt, daß T2 von einer fallenden Nasdaq nicht belastet wurde.

[gaptrader]

ein kleines Posting

June 14, 2002

TAKE TWO INTERACTIVE SOFTWARE INC (TTWO)
Quarterly Report (SEC form 10-Q)
Item 2. Management`s Discussion and Analysis of Financial Condition and Results of Operations (Dollars in thousands, unless otherwise noted)
General

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. The most significant estimates and assumptions relate to the recoverability of prepaid royalties, capitalized software development costs and other intangibles, inventories, realization of deferred income taxes and the adequacy of allowances for returns, price protection and doubtful accounts. Actual amounts could differ significantly from these estimates.

Revenue Recognition

The Company`s principal sources of revenues are derived from publishing and distribution operations. Publishing revenues are derived from the sale of internally developed software titles or software titles licensed from third parties. Distribution revenues are derived from the sale of third-party software titles, accessories and hardware. Publishing activities generally generate significantly higher margins than distribution activities, with sales of PC software titles resulting in higher margins than sales of CDs or cartridges designed for video game consoles.

Effective November 1, 2000, in accordance with the adoption of SAB 101, "Revenue Recognition in Financial Statements", the Company recognizes revenue net of allowances for returns and price protection when title and risk of loss pass to customers (generally, upon receipt of products by customers). Prior to that date, the Company recognized revenue upon shipment. In accordance with Statement of Position 97-2 "Software Revenue Recognition" the Company recognizes revenue when the price is fixed and determinable, upon persuasive evidence of an agreement, the Company`s fulfillment of its obligations under any such agreement and a determination that collection is probable. The Company`s payment arrangements with customers provide primarily 60 day terms and to a limited extent with certain customers 30, 90 or 120 day terms. The Company may not have a reliable basis to estimate returns and allowances for certain customers or may be unable to determine that collection of receivables is probable. In such circumstances, the Company defers revenues at the time of sale and recognizes revenues when collection of the related receivable becomes probable or cash is collected.

Returns and Reserves

The Company`s arrangements with customers for published titles generally require it to accept returns and provide price protection. The Company establishes a reserve for future returns of published titles and price protection based primarily on historical return rates, return policies and price protection policies, and recognizes revenues net of allowances for returns and price protection. The Company`s distribution arrangements with customers generally do not give them the right to return titles or to cancel firm orders. However, the Company sometimes accepts returns for stock balancing and negotiates accommodations to customers, which includes price discounts, credits and returns, when demand for specific titles fall below expectations. The historical product return rate for the Company`s distribution business has been substantially less than for its publishing business. If future returns significantly exceed established reserves, the Company`s operating results would be adversely affected.




TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES Management`s Discussion and Analysis of Financial Condition and Results of Operations (continued) (Dollars in thousands, unless otherwise noted)

Prepaid Royalties

The Company`s agreements with licensors and developers generally provide it with exclusive publishing rights and require it to make advance royalty payments that are recouped against royalties due to the licensor or developer based on product sales. Prepaid royalties are amortized as cost of sales on a title by title basis based on the greater of the proportion of current year sales to total of current and estimated future sales for that title or the contractual royalty rate based on actual net product sales. The Company continually evaluates the recoverability of prepaid royalties and charges to cost of sales the amount that management determines is probable that will not be recouped at the contractual royalty rate in the period in which such determination is made. Prepaid royalties are classified as current and non-current assets based upon estimated net product sales within the next year.

Prepaid royalties were written down by $2,428 and $3,168 for the three and six months ended April 30, 2002, respectively, to estimated net realizable value. Prepaid royalties were written down by $75 for the three and six months ended April 30, 2001, to estimated net realizable value. Amortization of prepaid royalties amounted to $8,307 and $2,649, which was included in total royalty expense of $19,053 and $2,905, respectively, for the three months ended April 30, 2002 and 2001. Amortization of prepaid royalties amounted to $23,545 and $8,669, which was included in total royalty expense of $38,481 and $9,305, respectively, for the six months ended April 30, 2002 and 2001.

Capitalized Software Development Costs

The Company capitalizes internal software development costs subsequent to establishing technological feasibility of a title. Capitalized software development costs primarily represent the costs associated with the internal development of the Company`s publishing products. Amortization of such costs as a component of cost of sales is recorded on a title-by-title basis based on the greater of the proportion of current year sales to total of current and estimated future sales for the title or the straight-line method over the remaining estimated useful life of the title. The Company continually evaluates the recoverability of capitalized software costs. For the three and six months ended April 30, 2002, capitalized software costs of $19 were written down to net realizable value. For the three and six months ended April 30, 2001, capitalized software costs of $389 were written off as cost of sales as part of the impairment charge as described in Note 3 to the Unaudited Consolidated Condensed Financial Statements. Amortization of capitalized software costs amounted to $919 and $1,049 for the three months ended April 30, 2002 and 2001, respectively, and $3,874 and $1,941 for the six months ended April 30, 2002 and 2001, respectively.



TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES Management`s Discussion and Analysis of Financial Condition and Results of Operations (continued) (Dollars in thousands, unless otherwise noted)

Results of Operations

The following table sets forth for the periods indicated the percentage of net sales represented by certain items reflected in the Company`s statement of operations, and sets forth net sales by territory, platform and principal products:


Three months ended Six months ended
April 30 April 30
Operating data: -------------------------- --------------------------
2002 2001 2002 2001
----------- ----------- ----------- -----------
Net sales 100.0% 100.0% 100.0% 100.0%
Cost of sales (1) 62.6 65.1 63.1 65.8
Selling and marketing (2) 12.0 13.1 9.4 9.8
General and administrative 11.1 10.3 8.4 8.0
Research and development 2.3 1.8 1.3 1.2
Depreciation and amortization 1.5 4.0 1.1 2.4
Interest expense, net -- 2.7 0.2 2.2
(Gain ) loss on Internet securities -- 23.5 -- 8.4
Provision (benefit) for income taxes 3.9 (7.6) 6.4 1.3
Net income (loss) 5.7 (13.0) 9.8 (1.3)

Net Sales by Territory:
North America 76.0% 75.2% 78.0% 75.8%
International 24.0 24.8 22.0 24.2

Platform Mix (publishing):
Console 93.7% 62.7% 94.5% 58.6%
PC 5.0 33.9 4.0 34.0
Accessories and Hand-held 1.3 3.4 1.5 7.4

Principal Product Sales:
Grand Theft Auto 3, PS2 (released October 2001) 35.5% --% 39.2% --%
State of Emergency (released February 2002) 22.0 -- 8.3 --
Max Payne, PS2 (released December 2001) 8.0 -- 10.2 --
Max Payne, Xbox (released December 2001) 4.9 -- 4.6 --
Ten largest titles 75.0 38.8 66.5 25.3

(1) Includes impairment charge on Internet assets of 4.3% and 1.5% of sales for the three and six months ended April 30, 2001, respectively.
(2) Includes impairment charge on Internet assets of 0.5% and 0.2% of sales for the three and six months ended April 30, 2001, respectively.



TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES Management`s Discussion and Analysis of Financial Condition and Results of Operations (continued) (Dollars in thousands, unless otherwise noted)

Three Months Ended April 30, 2002 and 2001

Net Sales. Net sales increased by $82,151 or 93.2%, to $170,330 for the three months ended April 30, 2002 from $88,179 for the three months ended April 30, 2001. The increase was primarily attributable to growth in publishing operations.

Publishing revenues increased by $85,674, or 178.1%, to $133,790 for the three months ended April 30, 2002 from $48,116 for the three months ended April 30, 2001. The increase was primarily attributable to the continued strong sales of Grand Theft Auto 3 and Max Payne and the release of State of Emergency. For the three months ended April 30, 2002 and 2001, publishing activities accounted for approximately 78.5% and 54.6% of net sales, respectively.

For the current period, products designed for PC platforms accounted for approximately 5.0% of publishing revenues as compared to 33.9% for the prior comparable period. The decrease is a result of fewer PC titles released during the current quarter. Products designed for video game console platforms accounted for 93.7% of publishing revenues as compared to 62.7% for the prior comparable period. The increase was primarily attributable to the release of State of Emergency for PlayStation 2, and continued sales of Grand Theft Auto 3 for PlayStation 2 and Max Payne for PlayStation 2 and Xbox.

Distribution revenues decreased by $3,523 or 8.8%, to $36,540 for the three months ended April 30, 2002 from $40,063 for the three months ended April 30, 2001. The decrease was primarily attributable to lower hardware sales. For the three months ended April 30, 2002 and 2001, distribution activities accounted for approximately 21.5% and 45.4% of net sales, respectively.

International operations accounted for approximately $40,921 or 24.0% of net sales for the three months ended April 30, 2002 compared to $21,834 or 24.8% for the three months ended April 30, 2001. The increase in absolute dollars was primarily attributable to expanded publishing operations in Europe.

Cost of Sales. Cost of sales increased by $49,279, or 85.9%, to $106,675 for the three months ended April 30, 2002 from $57,396 for the three months ended April 30, 2001. The 2001 quarter included a non-cash impairment charge of $3,786 relating to a reduction in the value of certain Internet assets, including software technologies and products developed by Neo. Excluding this charge, cost of sales as a percentage of net sales increased to 62.6% for the three months ended April 30, 2002 from 60.8% for the prior comparable period. The increase in cost of sales as a percentage of net sales was due partially to the change in publishing product mix to lower margin console titles as compared to higher margin PC titles in the prior compatible period. In addition, royalty expense increased during the current period due principally to sales of State of Emergency and incremental write downs of prepaid royalties of $2,353. In future periods, cost of sales may be adversely affected by manufacturing and other costs, price competition and by changes in product and sales mix and distribution channels.

Selling and Marketing. Selling and marketing expenses increased by $8,945, or 77.3%, to $20,522 for the three months ended April 30, 2002 from $11,577 for the three months ended April 30, 2001. The increase was attributable to increased television and other advertising expenses relating to Max Payne and Grand Theft Auto 3 during the 2002 quarter. The 2001 quarter includes a non-cash impairment charge of $401 relating to online sales promotions for the Company`s products to be delivered by Neo to Gameplay. Excluding the 2001 charge, selling and marketing expenses as a percentage of net sales for the three months ended April 30, 2002 decreased to 12.0% from 12.6% for the three months ended April 30, 2001.

General and Administrative. General and administrative expenses increased by $9,817, or 107.8%, to $18,924 for the three months ended April 30, 2002 from $9,107 for the three months ended April 30, 2001. General and administrative expenses as a percentage of net sales increased to 11.1% from 10.3% from the prior period. The increase in absolute dollars was attributable to increased personnel expenses necessary to support the Company`s operations and legal and professional fees incurred in connection with legal proceedings and regulatory matters.



TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES Management`s Discussion and Analysis of Financial Condition and Results of Operations (continued) (Dollars in thousands, unless otherwise noted)

Research and Development. Research and development costs increased by $2,336, or 145.9%, to $3,937 for the three months ended April 30, 2002 from $1,601 for the three months ended April 30, 2001. Research and development costs as a percentage of net sales increased to 2.3% for the three months ended April 30, 2002 from 1.8% for the three months ended April 30, 2001. The increase was attributable to bonus compensation and increased staffing levels.

Depreciation and Amortization. Depreciation and amortization expense decreased $1,021, or 28.9%, to $2,517 for the three months ended April 30, 2002 from $3,538 from the prior comparable period due to the Company`s adoption of SFAS 142. The decrease was partially offset by increased costs related to the company-wide implementation of a new accounting software system.

Income from Operations. Income from operations increased by $12,795, or 258.0%, to $17,755 for the three months ended April 30, 2002 from $4,960 for the three months ended April 30, 2001, due to the changes referred to above.

Interest Expense, net. Interest expense decreased by $2,302, or 97.7%, to $53 for the three months ended April 30, 2002 from $2,355 for the three months ended April 30, 2001. The decrease was attributable to the absence of borrowings from the Company`s credit facilities during the 2002 quarter.

(Gain) Loss on Internet Investments . For the three months ended April 30, 2002, the Company recognized a gain of $32 from the sale of marketable securities. During the three months ended April 30, 2001, the Company incurred a non-recurring non-cash impairment charges of $20,754 relating primarily to its investments in Gameplay and eUniverse to reflect other than temporary declines in the value of these investments.

Class Action Settlement Costs. During the three months ended April 30, 2002, the Company recorded $1,468 of class action settlement costs, which represents a settlement of $7,500 and related legal fees, net of $6,145 of insurance proceeds.

Provision (Benefit) for Income Taxes. Income tax expense of $6,629 for the three months ended April 30, 2002 compared to a benefit of $6,682 for the three months ended April 30, 2001. The increase in absolute dollars resulted primarily from attainment of pre-tax income for the three months ended April 30, 2002 as compared to a pre-tax loss for the comparable 2001 quarter. The effective tax rate was 40.8% for the three months ended April 30, 2002, while the tax rate for the 2001 quarter was 36.8%. The effective tax rate differs from the statutory rate as a result of non deductible expenses and the mix of foreign taxes as applied to the applicable income or loss.

Net Income. For the three months ended April 30, 2002, the Company achieved net income of $9,637, as compared to net loss of $11,467 for the three months ended April 30, 2001.



TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES Management`s Discussion and Analysis of Financial Condition and Results of Operations (continued) (Dollars in thousands, unless otherwise noted)

Six Months Ended April 30, 2002 and 2001

Net Sales. Net sales increased by $207,486, or 84.4%, to $453,256 for the six months ended April 30, 2002 from $245,770 for the six months ended April 30, 2001. The increase was primarily attributable to growth in publishing operations. Included in net sales for the six months ended April 30, 2001 was $27,230 attributable to the adoption of SAB 101.

Publishing revenues increased by $199,841, or 158.7%, to $325,746 for the six months ended April 30, 2002 from $125,905 for the six months ended April 30, 2001. The increase was primarily attributable to the continued strong sales of Grand Theft Auto 3 and the release of Max Payne and State of Emergency. For the six months ended April 30, 2002 and 2001, publishing activities accounted for approximately 71.9% and 51.2% of net sales, respectively. The 2001 period included $20,632 attributable to the adoption of SAB 101.

For the current period, products designed for PC platforms accounted for approximately 4.0% of publishing revenues as compared to 34.0% for the prior comparable period. The decrease is a result of fewer PC titles released during the current period. Products designed for video game console platforms accounted for 94.5% of publishing revenues as compared to 58.6% for the prior comparable period. The increase was primarily attributable to the release of State of Emergency for PlayStation 2, and Max Payne for PlayStation 2 and Xbox and continued sales of Grand Theft Auto 3 for PlayStation 2.

Distribution revenues increased by $7,645 or 6.4% to $127,510 for the six months ended April 30, 2002 from $119,865 for the six months ended April 30, 2001. The increase was primarily attributable to the commercial introduction of Xbox and GameCube and the continued rollout of PlayStation 2. For the six months ended April 30, 2002 and 2001, distribution activities accounted for approximately 28.1% and 48.8% of net sales, respectively. The 2001 period included $6,598 attributable to the adoption of SAB 101.

International operations accounted for approximately $99,772 or 22.0% of net sales for the six months ended April 30, 2002 compared to $59,437 or 24.2% for the six months ended April 30, 2001. The increase was primarily attributable to expanded publishing operations in Europe, including the release of Max Payne and State of Emergency on PlayStation 2 and continued sales of Grand Theft Auto 3 for PlayStation 2. The Company expects that international sales will continue to account for a significant portion of its revenue.

Cost of Sales. Cost of sales increased by $124,484, or 77.0%, to $286,140 for the six months ended April 30, 2002 from $161,656 for the six months ended April 30, 2001. The 2001 period includes a non-cash impairment charge of $3,786 relating to a reduction in the value of certain Internet assets. Excluding this charge, cost of sales as a percentage of net sales decreased to 63.1% for the six months ended April 30, 2002 from 64.3% for the prior comparable period. The decrease in cost of sales as a percentage of net sales was due to a higher percentage of publishing revenues derived principally from sales of internally owned and developed Grand Theft Auto 3. This decrease was partially offset by higher royalty expense during the current period due primarily to sales of State of Emergency and incremental write downs of prepaid royalties of $3,093. Additionally, this decrease in cost of sales as a percentage of net sales was partially offset by the change in publishing product mix to lower margin console titles as compared to higher margin PC titles in the prior comparable period. Cost of sales in 2001 included $18,335 related to the adoption of SAB 101. In future periods, cost of sales may be adversely affected by manufacturing and other costs, price competition and by changes in product and sales mix and distribution channels.



TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES Management`s Discussion and Analysis of Financial Condition and Results of Operations (continued) (Dollars in thousands, unless otherwise noted)

Selling and Marketing. Selling and marketing expenses increased by $18,388, or 76.2%, to $42,517 for the six months ended April 30, 2002 from $24,129 for the six months ended April 30, 2001. The increase was attributable to increased television and other advertising expenses relating to Max Payne and Grand Theft Auto 3 during the period, partly offset by the 2001 non-cash impairment charge of $401 relating to online sales promotions for the Company`s products to be delivered by Neo to Gameplay. Selling and marketing expenses as a percentage of net sales declined to 9.4% for the six months ended April 30, 2002 from 9.8% in the similar period of 2001.

General and Administrative. General and administrative expenses increased by $18,303, or 93.3%, to $37,921 for the six months ended April 30, 2002 from $19,618 for the six months ended April 30, 2001. General and administrative expenses as a percentage of net sales remained constant from the prior period. The increase in absolute dollars was attributable to increased personnel expenses necessary to support the Company`s operations and legal and professional fees incurred in connection with legal proceedings and regulatory matters.

Research and Development. Research and development costs increased by $2,890, or 96.3% to $5,891 for the six months ended April 30, 2002 from $3,001 for the six months April 30, 2001. Research and development costs as a percentage of net sales remained relatively constant for the six months ended April 30, 2002 and 2001.

Depreciation and Amortization. Depreciation and amortization expense of $4,788 for the six months ended April 30, 2002 decreased $1,172, or 19.7%, from the prior comparable period, due to the Company`s adoption of SFAS 142 partly offset by increased costs related to the company-wide implementation of a new accounting software system.

Income from Operations. Income from operations increased by $44,593, or 142.0%, to $75,999 for the six months ended April 30, 2002 from $31,406 for the six months ended April 30, 2001, due to the changes referred to above.

Interest Expense, net. Interest expense decreased by $4,258, or 80.6%, to $1,027 for the six months ended April 30, 2002 from $5,285 for the six months ended April 30, 2001. The decrease was attributable to substantially lower levels of borrowing from the Company`s credit facilities.

(Gain) Loss on Internet Investments. For the six months ended April 30, 2002, the Company recognized a gain of $159 from the sale marketable of securities. During the six months ended April 30, 2001, the Company incurred a non-recurring non-cash impairment charges of $20,754 relating primarily to its investments in Gameplay and eUniverse to reflect other than temporary declines in the value of these investments.

Class Action Settlement Costs. During the three months ended April 30, 2002, the Company recorded $1,468 of class action settlement costs, which represents a settlement of $7,500 and related legal fees, net of $6,145 of insurance proceeds.

Provision (Benefit) for Income Taxes. Income tax expense increased by $25,932, to $29,197 for the six months ended April 30, 2002 from $3,265 for the six months ended April 30, 2001. The increase was primarily attributable to increased taxable income. The decrease in the effective rate to 39.6% for the six months ended April 30, 2002 as compared to 60.8% for the six months ended April 30, 2001 is the result of state and foreign tax rate differentials and a decrease in non-deductible items, such as goodwill as applied to higher levels of pretax income.

Cumulative Effect of Change in Accounting Principle. In connection with the adoption of SAB 101, the Company recognized a cumulative effect of $5,337 net of taxes of $3,558 in 2001.

Net Income. For the six months ended April 30, 2002, the Company achieved net income of $44,466, as compared to net loss of $3,235 for the six months ended April 30, 2001.



TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES Management`s Discussion and Analysis of Financial Condition and Results of Operations (continued) (Dollars in thousands, unless otherwise noted)

Liquidity and Capital Resources

The Company`s primary cash requirements have been and will continue to be to fund developing, manufacturing, publishing and distributing its products. The Company has historically satisfied its working capital requirements primarily through cash flow from operations, the issuance of debt and equity securities and bank borrowings. At April 30, 2002, the Company had working capital of $145,811 as compared to working capital of $88,229 at October 31, 2001.

The Company`s cash and cash equivalents increased $63,561 to $69,617 at April 30, 2002, from $6,056 at October 31, 2001. The increase is primarily attributable to $108,397 of cash provided by operating activities, partly offset by $946 used in investing activities and by $47,184 used in financing activities.

Cash provided by operating activities for the six months ended April 30, 2002 was $108,397 compared to $23,322 for the six months ended April 30, 2001 reflecting increased net income and working capital.

Net cash used in investing activities for the six months ended April 30, 2002 was $946 as compared to net cash used in investing activities of $7,077 for the six months ended April 30, 2001. The decrease is primarily attributable to the sale of securities coupled with no acquisition activity in 2002, partially offset by increased expenditures for fixed assets.

Net cash used in financing activities for the six months ended April 30, 2002 was $47,184, as compared to net cash used in financing activities of $13,800 for the six months ended April 30, 2001. The increase in net cash used in financing activities was primarily attributable to the increased repayment of indebtedness.

In December 1999, the Company entered into a credit agreement, as amended, with a group of lenders led by Bank of America, N.A., as agent. The agreement was amended in February 2002 to provide for borrowings of up to $50,000 through the remaining term of the agreement. Generally, advances under the line of credit are based on a borrowing formula equal to the lesser of (1) the borrowing limit or (2) 70% of eligible accounts receivable, plus 25% of eligible inventory. Interest accrues on such advances at the bank`s prime rate plus 1.25%, or at LIBOR plus 3.25%. Borrowings under the line of credit are collateralized by the Company`s accounts receivable, inventory, equipment, general intangibles, securities and other personal property, including the capital stock of the Company`s domestic subsidiaries. The loan agreement contains certain financial and other covenants. As of April 30, 2002, the Company is in compliance with such covenants. The loan agreement limits or prohibits the Company from declaring or paying cash dividends, merging or consolidating with another corporation, selling assets (other than in the ordinary course of business), creating liens and incurring additional indebtedness. The line of credit expires on December 7, 2002. The Company had no outstanding borrowings under the revolving line of credit as of April 30, 2002.

In February 2001, the Company`s United Kingdom subsidiary entered into a credit facility agreement, as amended in March 2002, with Lloyds TSB Bank plc ("Lloyds") under which Lloyds agreed to make available borrowings of up to $19,000. Advances under the credit facility bear interest at the rate of 1.25% per annum over the bank`s base rate, and are guaranteed by the Company. The facility expires on March 31, 2004. The Company had no outstanding borrowings under this facility as of April 30, 2002.


s TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES Management`s Discussion and Analysis of Financial Condition and Results of Operations (continued) (Dollars in thousands, unless otherwise noted)

For the six months ended April 30, 2002, the Company received proceeds of $7,396 relating to exercise of stock options and warrants.

In connection with the Company`s acquisition of the publishing rights to the franchise of Duke Nukem` PC and video games in December 2000, the Company is contingently obligated to pay $6,000 in cash upon delivery of the final PC version of Duke Nukem` Forever. In addition, in connection with the Company`s acquisition of the Max Payne product franchise, the Company is contingently liable to make aggregate payments of up to $8,000 in cash upon the timely delivery of the final PC version of Max Payne 2 and the achievement of certain sales targets for such product. The payables will be recorded when the contingencies are resolved.

The Company`s accounts receivable, less an allowance for doubtful accounts, returns and price protection and other discounts at April 30, 2002 was $65,095. Of such receivables, approximately 10.7% was due from one customer. Most of the Company`s receivables are covered by insurance in the event of a customer`s bankruptcy or insolvency and generally the Company has been able to collect its receivables in the ordinary course of business. The Company does not hold any collateral to secure payment from customers. As a result, the Company is subject to credit risks, particularly in the event that any of the receivables represent a limited number of retailers or are concentrated in foreign markets. If the Company is unable to collect its accounts receivable as they become due and such accounts are not covered by insurance, the Company could be required to increase its allowance for doubtful accounts, which could adversely affect its liquidity and working capital position. The Company had accounts receivable days outstanding of 34 days at April 30, 2002, as compared to 96 days at April 30, 2001. The 2002 period was favorably impacted by the launch of State of Emergency in the first month of the quarter, which provided the time to collect such receivables by April 30, 2002.

The Company`s offices and warehouse facilities are occupied under non-cancelable operating leases expiring at various times from January 2003 to October 2011. Additionally, the Company has leased certain furniture equipment and automobiles under non-cancelable leases expiring through July 2005. In April 2002, the Company acquired exclusive distribution rights to various software games in the United States and Canada. The agreement, which expires in October 2003, requires minimum guaranteed payments of $4,200, which are collateralized by a standby letter of credit.

The Company has no material commitments for capital expenditures. The Company may incur significant legal, accounting and other professional fees and expenses in connection with pending regulatory matters.

Based on its currently proposed operating plans and assumptions, the Company believes that projected cash flow from operations and available cash resources, including amounts available under its lines of credit, will be sufficient to satisfy its cash requirements for the reasonably foreseeable future.

Fluctuations in Operating Results and Seasonality

The Company has experienced fluctuations in quarterly operating results as a result of the timing of the introduction of new titles; variations in sales of titles developed for particular platforms; market acceptance of the Company`s titles; development and promotional expenses relating to the introduction of new titles, sequels or enhancements of existing titles; projected and actual changes in platforms; the timing and success of title introductions by the Company`s competitors; product returns; changes in pricing policies by the Company and its competitors; the accuracy of retailers` forecasts of consumer demand; the size and timing of acquisitions; the timing of orders from major customers; and order cancellations and delays in product shipment. Sales of the Company`s titles are also seasonal, with peak shipments typically occurring in the fourth calendar quarter (the Company`s fourth and first fiscal quarters) as a result of increased demand for titles during the holiday season. Quarterly comparisons of operating results are not necessarily indicative of future operating results.



TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES Management`s Discussion and Analysis of Financial Condition and Results of Operations (continued) (Dollars in thousands, unless otherwise noted)

International Operations

Sales in international markets, principally in the United Kingdom and other countries in Europe, have accounted for a significant portion of the Company`s net sales. For the three months ended April 30, 2002, and 2001, sales in international markets accounted for approximately 24.0% and 24.8%, respectively, of the Company`s net sales. For the six months ended April 30, 2002 and 2001, sales in international markets accounted for approximately 22.0% and 24.2%, respectively, of the Company`s net sales. The Company is subject to risks inherent in foreign trade, including increased credit risks, tariffs and duties, fluctuations in foreign currency exchange rates, shipping delays and international political, regulatory and economic developments, all of which can have a significant impact on the Company`s operating results.

Recently Issued Accounting Pronouncements

In November 2001, the Financial Accounting Standards Board ("FASB") Emerging Issues Task Force (EITF) reached a consensus on EITF Issue 01-09, Accounting for Consideration Given by a Vendor to a Customer or Reseller of the Vendor`s Products, which is a codification of EITF 00-14, 00-22 and 00-25. This EITF presumes that consideration from a vendor to a customer or reseller of the vendor`s products to be a reduction of the selling prices of the vendor`s products and, therefore, should be characterized as a reduction of revenue when recognized in the vendor`s income statement and could lead to negative revenue under certain circumstances. Revenue reduction is required unless consideration relates to a separate identifiable benefit and the benefit`s fair value can be established. The Company has early adopted EITF 01-09 effective November 1, 2001. The adoption of the new standard did not have a material impact on the consolidated condensed financial statements. The prior period has been reclassified in accordance with this statement.

Effective November 1, 2001, the Company adopted Statement of Financial Accounting Standard No. 141, "Business Combinations" ("SFAS 141") and Statement of Financial Accounting Standard No. 142, "Goodwill and Other Intangible Assets" ("SFAS 142"). SFAS 141 requires all business combinations to be accounted for using the purchase method of accounting and that certain intangible assets acquired in a business combination shall be recognized as assets apart from goodwill. SFAS 142 addresses the recognition and measurement of goodwill and other intangible assets subsequent to their acquisition. SFAS 142 also addresses the initial recognition and measurement of intangible assets acquired outside of a business combination whether acquired individually or with a group of other assets. This statement provides that intangible assets with finite useful lives be amortized and that intangible assets with indefinite lives and goodwill will not be amortized, but will be tested at least annually for impairment. Upon completion of the transitional impairment test, the fair value for each of the Company`s reporting units exceeded the reporting unit`s carry amount and no impairment was indicated.

In August 2001, the FASB issued Statement of Financial Accounting Standard No. 143, "Accounting for Obligations Associated with the Retirement of Long-Lived Assets" ("SFAS 143"). The objective of SFAS 143 is to provide accounting guidance for legal obligations associated with the retirement of long-lived assets. The retirement obligations included within the scope of this pronouncement are those that an entity cannot avoid as a result of either the acquisition, construction or normal operation of a long-lived asset. Components of larger systems also fall under this pronouncement, as well as tangible long-lived assets with indeterminable lives. The provisions of SFAS 143 are effective for financial statements issued for fiscal years beginning after June 15, 2002. The Company is currently evaluating the expected impact of the adoption of SFAS 143 on the Company`s financial condition, cash flows and results of operations. The Company will adopt the standard in the first quarter of fiscal 2003.



TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES Management`s Discussion and Analysis of Financial Condition and Results of Operations (continued) (Dollars in thousands, unless otherwise noted)

In October 2001, the FASB issued Statement of Financial Accounting Standard No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets" ("SFAS 144"). The objectives of SFAS 144 are to address significant issues relating to the implementation of SFAS 121 and to develop a single accounting model, based on the framework established in SFAS 21, for the long-lived assets to be disposed of by sale, whether previously held and used or newly acquired. The provisions of SFAS 144 are effective for financial statements issued for fiscal years beginning after December 15, 2001. The Company is currently evaluating the expected impact of the adoption of SFAS 144 on the Company`s financial condition and results of operations. The Company will adopt the standard in the first quarter of fiscal 2003.

In April 2002, the FASB issued Statement of Financial Accounting Standard No. 145, "Rescission of FASB Statements No. 4, 44 and 64, Amendment to FASB Statement No. 13, and Technical Corrections" ("SFAS 145"). SFAS 145 eliminates the requirement (in SFAS No. 4) that gains and losses from the extinguishments of debt be aggregated and classified as extraordinary items, net of the related income tax. In addition, SFAS No. 145 requires sales-lease back treatment for certain modifications of a capital lease that result in the lease being classified as an operating lease. The rescission of SFAS No. 4 is effective for fiscal years beginning after May 15, 2002, which for the Company would be November 1, 2002. Earlier application is encouraged. Any gain or loss on extinguishment of debt that was previously classified as an extraordinary item would be reclassified to other income (expense). The remainder of the statement is generally effective for transactions occurring after May 15, 2002. The Company does not expect that the adoption of SFAS No. 145 will have a material impact on the Company`s financial condition, cash flows and results of operations.

Cautionary Statement and Risk Factors

Safe Harbor Statement under the Securities Litigation Reform Act of 1995: The Company makes statements in this report that are considered forward-looking statements under federal securities laws. Such forward-looking statements are based on the beliefs of management as well as assumptions made by and information currently available to them. The words "expect," "anticipate," "believe," "may," "estimate," "intend" and similar expressions are intended to identify such forward-looking statements. Forward-looking statements involve risks, uncertainties and assumptions including, but not limited to, the following:

The market for interactive entertainment software titles is characterized by short product life cycles. The interactive entertainment software market is characterized by short product life cycles and frequent introduction of new products. New products may not achieve significant market acceptance or achieve sufficient sales to permit the Company to recover development, manufacturing and associated costs. Historically, few interactive entertainment software products have achieved sustained market acceptance. Even the most successful titles remain popular for only limited periods of time, often less than six months. Because revenues associated with the initial shipments of a new product generally constitute a high percentage of the total revenues associated with the life of a product, any delay in the introduction of one or more new products could harm the Company`s operating results. The failure of one or more of the Company`s products to achieve market acceptance could result in losses.

A significant portion of the Company`s revenues is derived from a limited number of titles. The Company`s ten best selling titles accounted for approximately 75.0% and 66.5% of revenues for the three and six months ended April 30, 2002, respectively, and 31.3% of revenues for the year ended October 31, 2001. Future titles may not be commercially viable. The Company also may not be able to release new titles within scheduled release times or at all. If the Company fails to continue to develop and sell new, commercially successful titles, revenues and profits may decrease substantially and the Company may incur losses.



TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES Management`s Discussion and Analysis of Financial Condition and Results of Operations (continued) (Dollars in thousands, unless otherwise noted)

The Company`s quarterly operating results may vary significantly, which could cause its stock price to decline. The Company has experienced and may continue to experience wide fluctuations in quarterly operating results. The interactive entertainment industry is highly seasonal, with sales typically higher during the fourth and first calendar quarters, due primarily to the increased demand for games during and immediately following the holiday buying season. The Company`s failure or inability to introduce products on a timely basis to meet seasonal fluctuations in demand could harm the Company`s business and operating results. Other factors that cause fluctuations include delays in the introduction of new titles; the size and timing of product and corporate acquisitions; variations in sales of titles designed to operate on particular platforms; development and promotional expenses relating to the introduction of new titles, sequels or enhancements of existing titles; availability of hardware platforms; the timing and success of title introductions by competitors; product returns; the accuracy of retailers` forecasts of consumer demand; and the timing of orders from major customers.

The Company`s expense levels are based largely on expectations regarding future sales. Therefore, the Company`s operating results would be harmed by a decrease in sales or a failure to meet sales expectations. The uncertainties associated with product development, lengthy manufacturing lead times, production delays and the approval process for products by hardware manufacturers and other licensors make it difficult to predict the quarter in which products will ship and may cause the Company to fail to meet financial expectations. In future quarters operating results may fall below the expectations of securities analysts and investors. In this event, the trading price of the Company`s common stock could decline.

The interactive entertainment software industry is cyclical, and is subject to rapidly changing consumer tastes and preferences. The Company`s business is subject to all of the risks generally associated with the interactive entertainment software industry, which has been cyclical in nature and has been characterized by periods of significant growth followed by rapid declines. Future operating results depend on numerous factors beyond the Company`s control, including the popularity, price and timing of new software and hardware platforms being released and distributed by the Company and its competitors; international, national and regional economic conditions, particularly economic conditions adversely affecting discretionary consumer spending; changes in consumer demographics; the availability of other forms of entertainment; and critical reviews and public tastes and preferences, all of which change rapidly and cannot be predicted.

Rapidly changing technology and platform shifts could hurt the Company`s operating results. The interactive entertainment industry in general is associated with rapidly changing technology, which often leads to software and platform obsolescence and significant price erosion over the life of a product. The introduction of new platforms and technologies can render existing software titles obsolete or unmarketable. Obsolescence of software or hardware platforms could leave the Company with increased inventories of unsold titles and limited amounts of new titles to sell to consumers, which would have a material adverse effect on the Company`s operating results. A number of the Company`s competitors have developed or are currently developing software for use by consumers over the Internet. Future increases in the availability of such software or technological advances in such software or the Internet could result in a decline in platform-based software and impact the Company`s sales. Direct sales of software by major manufacturers over the Internet would materially adversely affect the Company`s distribution business.

Next-generation hardware platforms may not achieve significant market acceptance. The Company`s software development efforts with respect to new hardware platforms may not lead to marketable titles or titles that generate sufficient revenues to recover their development, manufacturing and marketing costs, especially if a new hardware platform does not reach a significant level of market acceptance. This risk may increase in the future as continuing increases in development costs require corresponding increases in revenues in order to maintain profitability. The Company is devoting development resources on products designed for Sony`s PlayStation 2, Microsoft`s Xbox and Nintendo`s GameCube. If fewer than expected units of a new hardware platform are produced or shipped, or if such platforms do not achieve commercial success, the Company may experience lower than expected sales or losses for these platforms.

The Company`s business is dependent on licensing and publishing arrangements with third parties. The Company`s success depends on its ability to identify and develop new titles on a timely basis. The Company has entered into agreements with third parties to acquire the rights to publish and distribute interactive entertainment



TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES Management`s Discussion and Analysis of Financial Condition and Results of Operations (continued) (Dollars in thousands, unless otherwise noted)

software. These agreements typically require the Company to make advance payments, pay royalties and satisfy other conditions. The Company`s advance payments may not be sufficient to permit developers to develop new software successfully. In addition, software development costs, promotion and marketing expenses and royalties payable to software developers have increased significantly in recent years and reduce the potential profits derived from sales of the Company`s software. Future sales of titles may not be sufficient to recover advances to software developers, and the Company may not have adequate financial and other resources to satisfy its contractual commitments. If the Company fails to satisfy its obligations under these license agreements, the agreements may be terminated or modified in ways that may be burdensome.

Returns of published titles and price protection may adversely affect the Company`s operating results. The Company is exposed to the risk of product returns and price protection with respect to its customers. Although distribution arrangements with retailers generally do not give them the right to return titles to the Company or to cancel firm orders, the Company`s arrangements with retailers for published titles require it to accept returns. The Company establishes a reserve for future returns and price protection for published titles at the time of sales, based primarily on its return policies, price protection policies and historical return rates. If return rates and price protection for published titles significantly exceed established reserves, revenues will decline and the Company could incur losses.

The interactive entertainment software industry is highly competitive. The Company competes for both licenses to properties and the sale of interactive entertainment software with Sony, Nintendo, Microsoft and Sega, each of which is a large developer and marketer of software for its platforms. Sony and Nintendo currently dominate the industry and have the financial resources to withstand significant price competition and to implement extensive advertising campaigns, particularly for prime-time television spots. These companies may also increase their own software development efforts or focus on developing software products for third-party platforms. The Company also competes with domestic and international companies, large software companies and media companies. Many of these competitors have far greater financial, technical, personnel and other resources than the Company, and many are able to carry larger inventories, adopt more aggressive pricing policies and make higher offers to licensors and developers for commercially desirable properties.

Increased competition for limited shelf space and promotional support from retailers could require the Company to incur greater expenses to market titles. Retailers have limited shelf space and promotional resources, and competition is intense among an increasing number of newly introduced interactive entertainment software titles for adequate levels of shelf space and promotional support. Competition for retail shelf space is expected to increase, which may require the Company to increase its marketing expenditures just to maintain current levels of sales of titles. Competitors with more extensive lines and popular titles frequently have greater bargaining power with retailers. Accordingly, the Company may not be able to achieve the levels of promotional support and shelf space that such competitors receive.

Rating systems for interactive entertainment software, potential legislation and consumer opposition could inhibit sales of the Company`s products. Trade organizations within the video game industry require interactive entertainment software publishers to provide consumers with information relating to graphic violence, profanity or sexually explicit material contained in software titles. Certain countries have also established similar rating systems as prerequisites for sales of interactive entertainment software in such countries. In some instances, the Company may be required to modify products to comply with the requirements of such governmental entities, which could delay the release of those products in such countries. The Company recently discontinued making sales of Grand Theft Auto 3 in Australia for several weeks while it made certain content changes to this title to comply with applicable rating systems. The Company believes that it complies with such rating systems and displays the ratings received for its titles.

Historically, the Company`s software titles received a rating of "E" (all ages) or "T" (age 13 and over), although most newer titles (including Grand Theft Auto 3, Max Payne and State of Emergency) have received a rating of "M" (age 17 and over). Certain retailers may decline to sell interactive entertainment software containing graphic violence or sexually explicit material, which may limit the potential market for the Company`s "M" rated products.



TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES Management`s Discussion and Analysis of Financial Condition and Results of Operations (continued) (Dollars in thousands, unless otherwise noted)

Several proposals have been made for federal legislation to regulate the interactive entertainment software, motion picture and recording industries, including a proposal to adopt a common rating system for interactive entertainment software, television and music containing violence and sexually explicit material and the Federal Trade Commission has adopted rules with respect to the marketing of such material to minors. Consumer advocacy groups have also opposed sales of interactive entertainment software containing graphic violence and sexually explicit material by pressing for legislation in these areas and by engaging in public demonstrations and media campaigns. If any groups were to target the Company`s "M" rated titles, it might be required to significantly change or discontinue a particular title, which in the case of the Company`s best selling titles could hurt its business. Additionally, in light of the events in September 2001, the Company revised content in certain of its products that the Company deemed inappropriate. Delays in the release of products as a result of content changes could result in lost revenues.

The Company cannot publish console titles without the approval of hardware manufacturers. The Company is required to obtain a license to develop and publish titles for each hardware console platform for which it develops and publishes titles. If any manufacturer chooses not to renew or extend the Company`s license agreement at the end of its current term, or if the manufacturer were to terminate the license for any reason, the Company would be unable to publish additional titles for that manufacturer`s hardware platform. The Company is dependent upon a license agreement with Sony to publish titles for PlayStation 2. Termination of such agreement would seriously hurt the Company`s business.

Sony and Nintendo are the sole manufacturers of the titles published under license from them. Games for the Xbox must be manufactured by pre-approved manufacturers. Each platform license provides that the manufacturer may raise prices for the titles at any time and grants the manufacturer substantial control over the release of new titles.

Each of these manufacturers also publishes software for its own platforms and manufactures titles for all of its other licensees and may choose to give priority to its own titles or those of other publishers if it has insufficient manufacturing capacity or if there is increased demand.

In addition, these manufacturers may not have sufficient production capacity to satisfy the Company`s scheduling requirements during any period of sustained demand. If manufacturers do not supply the Company with finished titles on favorable terms without delays, the Company`s operations would be materially interrupted, its revenues could decline and it could incur losses.

The Company may not be able to protect its proprietary rights or avoid claims that it infringes on the proprietary rights of others. The Company develops proprietary software and has obtained the rights to publish and distribute software developed by third parties. The Company attempts to protect its software and production techniques under copyright, trademark and trade secret laws as well as through contractual restrictions on disclosure, copying and distribution. Interactive entertainment software is susceptible to unauthorized copying. Unauthorized third parties may be able to copy or to reverse engineer the Company`s software that the Company regards as proprietary. From time to time, the Company receives notices from third parties alleging infringement of their proprietary rights.

Although the Company believes that its software and technologies and the software and technologies of third-party developers and publishers with whom its has contractual relations do not and will not infringe or violate proprietary rights of others, it is possible that infringement of proprietary rights of others has or may occur. Any claims of infringement, with or without merit, could be time-consuming, costly and difficult to defend.

The Company is dependent on third-party software developers to complete many of its titles. The Company relies on third-party software developers for the development of a significant number of its titles. Quality third-party developers are continually in high demand. Software developers may not be available to develop software for the Company or may not be able to complete titles on a timely basis or within acceptable quality standards. In addition, the development cycle for new titles is long, typically ranging from twelve to twenty-four months. After development of a product, it may take between six to twelve additional months to develop the product for other hardware platforms. If developers experience financial difficulties, additional costs or unanticipated development delays, the Company may not be able to release titles according to schedule.



TAKE-TWO INTERACTIVESOFTWARE, INC. and SUBSIDIARIES Management`s Discussion and Analysis of Financial Condition and Results of Operations (continued) (Dollars in thousands, unless otherwise noted)

The Company`s software is susceptible to errors, which can harm the Company`s financial results and reputation. The technological advancements of new hardware platforms allow more complex software products. As software products become more complex, the risk of undetected errors in products when first introduced increases. If, despite testing, errors are found in new products or releases after shipments have been made, the Company could experience a loss of or delay in timely market acceptance, product returns, loss of revenues and damage to its reputation.

Gross margins relating to the Company`s distribution business have been historically narrow which increases the impact of variations in costs on operating results. As a result of intense price competition in the console hardware and software distribution industry, gross margins in the Company`s distribution business have historically been narrow and the Company expects them to continue to be narrow. The Company receives purchase discounts from suppliers based on various factors, including volume purchases. These purchase discounts directly affect gross margins. It may become more difficult for the Company to achieve the percentage growth in sales required to continue to receive volume purchase discounts.

The Company may not be able to adequately adjust its cost structure in a timely fashion in response to a sudden decrease in demand. A significant portion of the Company`s selling and general and administrative expense is comprised of personnel, facilities and costs of invested capital. In the event of a significant decline in revenues, the Company may not be able to exit facilities, reduce personnel, or make other significant changes to its cost structure without significant disruption to its operations or without significant termination and exit costs. Management may not be able to implement such actions, if at all, in a timely manner to offset an immediate shortfall in revenues and gross profit.

The Company`s distribution business is dependent on suppliers to maintain an adequate supply of products to fulfill customer orders on a timely basis. The Company`s ability to obtain particular products in required quantities and to fulfill customer orders on a timely basis is critical to its success. In most cases, the Company has no guaranteed price or delivery agreements with suppliers. In certain product categories, limited price protection or return rights offered by manufacturers may have a bearing on the amount of product the Company may be willing to purchase. The console hardware industry experiences significant product supply shortages from time to time due to the inability of certain manufacturers to supply certain products on a timely basis. As a result, the Company has experienced, and may in the future continue to experience, short-term hardware inventory shortages. In addition, manufacturers who currently distribute their products through the Company may decide to distribute, or to substantially increase their existing distribution, through other distributors, or directly to retailers. In the case of software, alternative means of distribution have emerged, such as electronic distribution.

The Company is subject to the risk that inventory values may decline and protective terms under supplier arrangements may not adequately cover the decline in values. The interactive entertainment software and hardware industry is subject to rapid technological change, new and enhanced generations of products, and evolving industry standards. These changes may cause inventory to decline substantially in value or to become obsolete. The Company is exposed to inventory risk to the extent that supplier price protections are not available on all products or quantities and are subject to time restrictions. In addition, suppliers may become insolvent and unable to fulfill price protection obligations.



TAKE-TWO INTERACTIVESOFTWARE, INC. and SUBSIDIARIES Management`s Discussion and Analysis of Financial Condition and Results of Operations (concluded) (Dollars in thousands, unless otherwise noted)

A limited number of customers may account for a significant portion of the Company`s sales. Sales to the Company`s five largest customers accounted for approximately 20.9% of revenues for the year ended October 31, 2001 and 32.6% of revenues for the six months ended April 30, 2002. Customers may terminate their relationship with the Company at any time. The loss of relationships with principal customers or a decline in sales to principal customers could harm the Company`s operating results. Bankruptcies or consolidations of certain large retail customers could also hurt the Company`s business.

The Company is subject to credit and collection risks. Sales are typically made on credit, with terms that vary depending upon the customer and the demand for the particular title being sold. The Company does not hold any collateral to secure payment by its customers. As a result, the Company is subject to credit risks, particularly in the event that any of its receivables represent sales to a limited number of retailers or are concentrated in foreign markets. If the Company is unable to collect on accounts receivable as they become due and such accounts are not covered by insurance, it could adversely affect the Company`s liquidity and

[FunMan2001]

@gaptrader

sorry, aber Take Two ist nun mal sehr volatil.
Liegt aber auch daran, daß noch viele Shorties drin
sind (aber es werden langsam weniger ):

Auf dieser Page TTWO eingeben:
http://www.viwes.com/invest/shorts/query.cgi

Ich steig mal heute mit einer kleinen Position ein mit
KZ 21-22 Dollar

Grüsse,
FunMan

[southbound]

http://www.conflict.com/conflictdesertstorm.html

[gaptrader]

http://www.economist.com/business/displayStory.cfm?story_id=…

http://www.nasdaq.com/asp/quotes_full.asp?kind=shortint&symb…

[gaptrader]

Grand Theft Auto III patch available



Take-Two releases a small upgrade for its popular third-person action game.

Take-Two Interactive`s Rockstar Games division has released a downloadable patch for Grand Theft Auto III, its popular action game. The 1MB patch upgrades the game to version 1.1 and contains a few minor fixes and changes that improve the game`s performance. The patch can be downloaded from the links below and from the official Take-Two Web site.
Grand Theft Auto III for the PC is based on the best-selling PlayStation 2 action game by the same name, and it features improved graphics and sound and a customizable player character. For more information, take a look at our full review of the game.

By Trey Walker, GameSpot PC [POSTED: 06/27/02]

[gaptrader]

,23-Jul-02 USB Piper Jaffray upgrade: from Outperform
to Strong Buy

[gaptrader]

http://www.take2games.de/news/news.php?id=469