News just got out about a serious management transition over at Take-Two Interactive Software, the major US-based publisher, developer, and distributor of video games and video game peripherals.

Chief exec Ben Feder has decided to step down, effective January 1, 2011, in order to pursue plans to travel in Asia with his family for an extended period.

Strauss Zelnick, Take-Two’s Executive Chairman, will take on the additional role of Chief Executive Officer.

Karl Slatoff, an EVP of Take-Two since 2008, has been named to the newly created role of COO. Slatoff previously worked with BMG Entertainment and The Walt Disney Company.

The news comes after the company earlier this week announced that it is changing its fiscal year to end March 31 instead of Oct. 31 to align its financial reporting more closely with the seasonality of its business.

Take-Two’s headquarters are in New York City, with international headquarters in Windsor, United Kingdom. Development studio locations include San Diego, Vancouver, Toronto and Austin, Texas.

Take-Two, which wholly owns 2K Games and Rockstar Games, has developed and published many notable games, including the Grand Theft Auto series, the Serious Sam shooter series, the Midnight Club racing series and BioShock.

The company was the target of hostile takeover bids from rival Electronic Arts issued in February 2008. The multi-billion dollar bid expired August 18, 2008.

Isn’t that a shame? Take-Two has announced that they’ve shifted the launch date for BioShock 2 to fiscal year 2010. Citing “several factors”, the publisher felt it necessary to push out BS2 so that it can get additional development time. While the original launch date of November 3 falls under Take-Two’s fiscal year of 2010, it’s being pushed back even further to an undetermined date.

Strauss Zelnick, Chairman of Take-Two, stated, “We recognize that our revised outlook for the balance of fiscal year 2009, due to both internal and external factors, is a disappointment. That said, we concluded that moving the release of BioShock 2 into fiscal year 2010 was the right decision for the product. We believe the result will be a more compelling consumer experience and a better performing product in the marketplace. At the same time, near term retail conditions have proven to be more challenging for our business than the assumptions built into our prior outlook. We remain confident in the long term potential for Take-Two’s business, and our ability to capitalize on that potential through our exceptional creative talent and solid balance sheet.”

Ben Feder, Chief Executive Officer of Take-Two, commented, “The decision to shift a release date is never an easy one, especially with a product as highly anticipated as BioShock 2. We felt that it was essential to invest the additional time to ensure that this title will deliver what its fans expect and deserve. As a result, we will now be launching sequels to several of our strongest franchises – including BioShock 2, Mafia II, Max Payne 3 and Red Dead Redemption – during the next fiscal year. These titles will anchor our lineup for fiscal 2010, and along with other products planned for next year, provide a platform for enhanced financial performance in what we hope will be an improved retail environment.”

That really stinks, but Take-Two is going to have a killer lineup of AAA titles next year. I’m pretty stoked on Mafia II.

Currently waiting on the conference call to start and I’ll update this post if any new details emerge.

Update: All the above titles will be released in the first half of the 2010 calendar year. No multi-platform GTA in 2010.

During Take-Two’s quarterly call today, CEO Ben Feder announced that BioShock 2 will ship on November 3 for the US and on October 30 in Europe. Yay!

Press Release

Take-Two Interactive has sued Apogee Software Ltd., also known as 3D Realms, for breach of contract. Of course, that breach was closing up shop before it finished Duke Nukem Forever, which had been in development since 1997. Oh, yeah!

The lawsuit, which was filed yesterday in Manhattan, says that 3D Realms didn’t live up to its contractual obligation in completing Duke Nukem Forever for Take-Two. Take-Two even threw a bunch of money at 3D Realms to help speed the process along: it paid 3D Realms $12 million in 2000 for publishing rights, and the two parties signed another agreement in 2007.

Take-Two said:

Apogee continually delayed the completion date for the Duke Nukem Forever. Apogee repeatedly assured Take-Two and the video-gaming community that it was diligently working toward competing development of the PC Version of the Duke Nukem Forever.

Expect this case to linger forever. See what I did there?

“Take-Two’s Board of Directors and management have a clear mandate from stockholders to maximize value,” said Strauss Zelnick, Chairman of the Board of Take-Two. “We are strongly positioned creatively, financially and competitively to benefit from the opportunities we see in the fastest growing segment of the entertainment industry. Our management and outstanding and talented employees have maintained an unwavering focus on our products and our business through this lengthy strategic review process and we are confident in our prospects. We remain focused on maximizing value for stockholders and are executing on our business strategies in a determined manner.”

PR

Electronic Arts has “moved on,” and is no longer interested in buying Take Two Interactive, the publisher of, among of games, Grand Theft Auto IV. EA made it official sometime Sunday evening, ending the months-long back-and-forth between the two companies.

Ask any gamer, and they’d tell you Electronic Arts was simply looking to buy the Grand Theft Auto brand, which, at least in the U.S., is good as gold right now. And since the holiday shopping season is rapidly approaching, EA didn’t feel there was enough time to cross all the Ts and dot all the Is—you know, business stuff—in time to get some of the holiday GTA money. So they balked.

There are other, larger business-y concerns going on here, but I’m gonna guess that none of you care too much about that.

Besides, isn’t it an unofficial rule of the Internet that you must hate everything EA does and produces?

Headlining the list of new features is the inclusion of the Survivor difficulty mode, Trophy support and the addition of all-new Add-On Game Content. Created exclusively for the PLAYSTATION 3 system version of BioShock, the Challenge Rooms will test the mettle of new and seasoned gamers by requiring them to utilize the knowledge and skills they have learned while traversing the halls of Rapture. The first Challenge Room will be viewable by appointment at Games Convention 2008 (CCL, Level 0, A02/1 + A02/2) from August 20 to August 24 and will be available for download shortly after launch.

EA has been after Take-Two since late last year. The process went public in February with Take Two letting EA’s offer expire five times. Now, EA has finally given up on its attempts to acquire Take Two at around $25-26 per share. The deal would have been worth around $2 billion, however Take Two has held fast that the offer was too low.

It looks like EA is finally going to listen and take a second look. EA may be the world’s largest video game publisher, but having the Grand Theft Auto franchise (not to mention BioShock) would certainly be an impressive feather in its hat. Take-Two and EA expect to enter into a confidentiality agreement, formalizing the process to “evaluate strategic alternatives”.

I doubt anything like Bad Company’s extra weapons will ever sit well with consumers, but Guild Wars tried doing away with monthly fees in order to sell episodic content, and now they eat off solid gold plates. Take-Two says it is pursuing ad placement in its sports games; now that’s something I can deal with. Updating the ads on the Jumbotron and alongside the field doesn’t interfere with gameplay, and may even make it more realistic to some. I can’t say I’m looking forward to more in-game advertising and buyable items, but if those enable excellent games, then I won’t object.

Seriously, though, Bioshock 3 was confirmed yesterday by Take-Two as being in the works. Wasn’t so long ago we heard that number two was coming out, not to mention the movie and iPhone versions.

Ah, the birth of a franchise — and the slow death of originality.

Now it’s official, folks. PS3 fanboys will have to wait until October, though. Full release after the break.

New York, NY – May 28, 2008 – 2K Games, a publishing label of Take-Two Interactive Software, Inc. (NASDAQ: TTWO), announced today that BioShock®, the “genetically enhanced” story-driven action game, is in development for the PLAYSTATION®3 computer entertainment system at 2K Marin. The PLAYSTATION 3 system title will be released in October 2008 with new features and content that heighten the award-winning experience.

BioShock for the Xbox 360® video game and entertainment system from Microsoft and Games for Windows® was released in 2007 and received numerous Game of the Year honors from prestigious organizations including Associated Press, the British Academy of Film and Television Arts (BAFTA), Game Informer, Spike TV’s VGAs and Paste Magazine. BioShock’s extension to the PLAYSTATION 3 system will bring exciting new content to this amazing title and reach many new players, while giving the title the opportunity to once again be named Game of the Year.

“Since BioShock for Xbox 360 and Games for Windows won countless 2007 Game of the Year awards, we are excited to see the impact of this stellar title for the PLAYSTATION 3 system when it debuts this fall,” said Christoph Hartmann, president of 2K. “Over the coming months we look forward to revealing the new features and content that will make this a must-have game for its new audience, as well as for those who enjoyed it on the other platforms.”

BioShock is a narrative-driven action experience that allows players to do the impossible as they journey through an amazing, immersive and terrifying world. Caught between powerful forces and hunted down by genetically mutated citizens, the player will come to grips with the mysterious and fascinating world of Rapture, a distinct Art Deco underwater utopia gone mad. BioShock not only challenges the players’ capacity to adapt and survive, but brings to question their values and commitment to the inhabitants of Rapture. With smart and adaptive AI, no encounter ever plays out the same, while numerous customization options provide gamers with an experience that adapts to their playing style.

As one of the highest-rated titles of 2007, BioShock was unanimously praised by the editorial industry’s top critics:

“While delivering a level of intrigue you rarely see in games, its most captivating element is its gameplay – which I can easily say delivers the most rewarding and adrenaline-filled experience I have ever had with an FPS.” – Game Informer Magazine, 10 out of 10, Game of the Year

“There’s ample flexibility in the game’s linear storyline that makes a second run through Rapture’s unique brand of madness an exciting prospect.” – Associated Press, 4 stars out of 4

“Why settle for watching the hero in a film have a thrilling adventure when you can all but live a narrative this masterfully woven.” – Paste Magazine, Game of the Year

“BioShock stands as a monolithic example of the convergence of entertaining gameplay and an irresistibly sinister, engrossing storyline that encompasses a host of multifaceted characters. This is an essential gaming experience.” – IGN.com, 9.7 out of 10, Editor’s Choice Award

“More so than any other game in recent memory, BioShock is dripping with atmosphere and intrigue, and it’s one of those rare titles where story, dialogue and character development are just as important as the action sequences.” – USA Today, 9 stars out of 10

BioShock for the PLAYSTATION 3 system will be available in October 2008 and is not yet rated by the ESRB. For more information on BioShock, visit www.bioshockgame.com.

There aren’t exactly any details at the moment to back up this claim, but the UK’s Playstation magazine, PSM3, is promising an in-depth preview along with screenshots according to CVG. No word on when the popular Take-Two title will be available for the Sony platform, but, as usual, we’ll keep a lookout for you PS3 fanboys.

Like Microsoft with Yahoo!, EA refuses to concede defeat in its pursuit of GTA publisher Take-Two. The Redwood City, Calif.-based corp said today that it has extended its self-imposed deadline to acquire Take-Two by one month. So now we have till June 16 to read all sorts of fun stories like:

“T2: You’re undervaluing our company”

and

“EA: No we’re not”

Both EA and Take-Two are down in early morning trading, with EA losing one-quarter of a percentage and Take-Two down just over one percent, as one 10:01am EDT.

Japan, often considered the last country with a passion for the arcade experience, is starting to lose interest in coin operated entertainment. Two of the biggest arcade chains in the region have already closed the doors at over 20% of their locations, and earnings continue to plummet.

Some in the industry are blaming the latest generation of consoles for sending the 6.9 billion dollar industry into a slump. Others blame the cigarette smoke that fills Japanese arcades, the expense, or the lack of innovation. When you get right down to it, it’s really the fact that you just don’t need the arcade anymore. Now, don’t get me wrong. I love arcades. I’ve spent hundreds and hundreds of both hours and dollars in them. However, it’s gotten to the point that besides the zomg-rip-off ticket/prize system and the creepy guy who stands a little bit too close while he watches you play, there just isn’t much at this point about the arcade experience you can’t get at home.

Hopefully the industry manages to come up with something that is both enticing to many and unique to the arcade environment. Otherwise, it seems that even in the arcade capital of the world, arcades might be done for.

[Via Reuters]

EA’s self-imposed deadline vis-à-vis its proposed acquisition of Take-Two expired Friday with nary a peep from either company. EA, fond of money, offered to buy Take-Two, the publisher of GTA, back in February, with the two companies going back and forth like little children ever since. Well, mainly EA; Take Two has been fairly quiet throughout, telling AFP that any further action is “in [EA's] court.” Speaking of balls being in courts, just two hours till game seven of Cavs/Celtics. I’m excited.

So yeah, numbers. EA, remember, offered Take-Two the equivalent of $25.74. Meanwhile, Take-Two closed at $27.10 Friday—on what planet would shareholders accept a bid for less than the present value of the stock?

I’d expect EA to murmur something tomorrow.

“Expect update on TTWO bid by Monday morning,” he said. “We continue to believe that the current offer of $25.74 per share would be accretive to earnings for Electronic Arts, as well as fill several meaningful product gaps.”

These are good choices because the director is familiar with spectacle and effects and likely has people in place he can work with, and the writer has done successful adaptations before. Since Bioshock is already so rich and complete, with settings, dialogue, and a full-blown plot, these guys have nothing they need to make good— they only need to not suck.

“reducing the loads on the servers at GameSpy and hopefully the completely random hangs that some users have seen.”

Can any PS3 owners in the audience check on this for us?

EA’s VP of corporate communications Jeff Brown spoke with GameIndustry.biz and says the current deal is “at best it’s a 50/50 proposition.” He also states that EA is not desperate to takeover T2 and that they just want to utilize their worldwide manufacturing prowess to rule the holiday season.

“EA’s not desperate,” he explained. “Part of our model for making this thing work at USD 2 billion is the assumption that if we can get this done in time to publish their games going into the Christmas holiday in ’08 – because EA has an unchallenged publishing capability around the world – we could without question sell more units of those games than they could if they were on their own.

“The passage of time serves to weaken the value and the certainty of this deal.”

Brown goes on to say that T2’s decision to wait till after GTA IV was launched is ‘mystifying’ since everyone and their mom knew it would sell well. All this nonsense because EA slipped on some stupid ratings poll. Oh well. Good luck to you, EA.