Double_Blade
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Take 2 is in trouble now....
New York Post: T2 in Trouble & It's Not Just Hot Coffee
The latest one here on Utah is,
Utah Attorney General Joins with ESRB in Ad Blitz
New York Post: T2 in Trouble & It's Not Just Hot Coffee
That whoosh you're hearing is the sound of Take-Two Interactive's stock price (NASDAQ: TTWO) in free fall.
Shares in the Grand Theft Auto publisher closed at 12.87 yesterday following news that a grand jury in New York had subpoenaed corporate records including those relating to last year's Hot Coffee scandal. 12.87 represents Take-Two's lowest stock price since early 2003. In after-hours trading prices dropped even more, to 10.30.
Bad news continues to pile up for T2. As reported by today's New York Post, the firm is in the crosshairs of D.A. Robert Morgenthau not just over Hot Coffee, but for the way it reported what the Post terms "key financial information."
The paper reported that the subpoenas served on T2 were "unusually wide-ranging" and demanded paperwork related to "acquisitions, partnerships and the recent dismissal of its longtime auditor, PricewaterhouseCoopers."
The Post also recapped T2's history of run-ins with regulatory agencies. Most notably, in June, 2005 the GTA publisher settled an SEC investigation by agreeing to a $7.5 million penalty for what the newspaper describes as "orchestrating a multi-year revenue scam."
As part of that deal CEO Ryan Bright was forced to step down and paid a $3.6 million fine. The Post also reports that "Despite the fines and shareholder losses, several people tied to the revenue scam are still employed by the company."
The Hot Coffee scandal, of course, is well-known to GP readers and the video game community. But also vexing Take-Two, according to the NY Post, is the resignation of board member Barbara Kaczynski in early 2006.
As reported at the time by GamePolitics, Kaczynski, who chaired the Take-Two board's audit committee, was highly critical of the publisher in her letter of resignation, citing an "increasingly unhealthy relationship between senior management and the board of directors ... characterized by a lack of cooperation and respect."
Shortly after leaving the company, Kaczynski hired a well-known securities defense lawyer, leading to speculation that the financial matters she left behind might be the subject of an investigation.
According to the Post, T2 is also in financial straits over the huge licensing fee it paid to Major League Baseball for exclusive rights (GP would call them "monopoly rights" but that's another rant for another time) to create MLB video games.
"They are selling a lot of MLB games," an unnamed stock trader told the Post, "but they aren't making a dime."
The New York Times has a little more on the T2 situation in Tuesday's edition.
The latest one here on Utah is,
Utah Attorney General Joins with ESRB in Ad Blitz
While some in Congress seem to favor using the ESRB as a punching bag, Utah Attorney General Mark Shurtleff has officially stepped into the ring on the side of the video game industry ratings board.
Yesterday Shurtleff and ESRB President Patricia Vance launched a series of public service announcements (PSA's) which will air on Utah television stations in coming weeks. During the press conference, Vance spoke about the need to raise parental awareness of the industry's rating system.
"Just like movies and TV shows, video games are created for a diverse audience of all ages," she said. "That is why it is so important that parents remember to check the rating when purchasing games for their children. We are very proud to have the support of Attorney General Shurtleff in reaching out to Utah's parents and educating them about the ratings."
For his part, Shurtleff complimented the ESRB. "As a father," the A.G. said, "I know about the tough decisions parents face over what video games they will allow into their homes. It's important for parents to look closely at the ESRB ratings before letting their kids play any game... As a fan of video games myself, I'm proud to be helping educate Utah's parents about this important tool."
More details about the Utah ESRB initiative are available on the Utah A.G.'s website.
CM: Shurtleff is a bit of a maverick on this issue, a political figure who admits to enjoying video games (well, as much as you can enjoy games dressed in business attire - see pic) despite having misgivings about the content in some titles.
GP readers may recall that as recently as September, 2005 Shurtleff participated in a video game protest. Back then Shurtleff asked game publisher Eidos to cancel the release of the controversial (and badly designed) GTA clone 25 to Life due to its portrayals of violence against police officers. Eidos eventually delayed releasing the game until after the holiday season. When 25 to Life finally launched in January, Shurtleff publicly announced that he hoped no one would buy it.
-Trying to figure out how to TiVo those Utah PSA commercials from Canada, GP Correspondent Colin "Jabrwock" McInnes