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Take-Two Sells Off Jack Of All Games, Goes All In On Publishing

Illustration for article titled Take-Two Sells Off Jack Of All Games, Goes All In On Publishing

What would make Grand Theft Auto publisher Take-Two Interactive revise its yearly earnings downward by an impressive $290 million for the year, just four days after previous guidance? The selling of its distribution business, Jack of All Games.

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The company announced today that it was selling off its distribution company to SYNNEX for $43.25 million, putting all of its eggs into the publishing business basket going forward. Take-Two expects more than a quarter billion drop in estimated revenues for the year, a $120 million reduction in the first quarter alone.

That's a big drop. So, why would Take-Two do such a thing?

Publisher CEO Ben Feder says the sale "is consistent with our stated intention to focus our resources on our core business strategy - delivering globally the most innovative and creative interactive entertainment products."

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Take-Two purchased Jack of All Games in 1998. The sale of the distribution arm to Synnex will mean a "small" loss for the publisher, with yearly revenue dropping from an expected $1.0-1.2 billion to $710-910 million.

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DISCUSSION

I remember having to receive their kiosks at the store I worked at (at the time, managed their receiving dept), and I was convinced that the people who added the pricing tags for us couldn't follow the price lists to save their lives.

One year I received about 30 cases of their games because they were going to be on the floor for Black Friday. I ended up staying behind several extra hours because not only did we get them late (day before Thanksgiving), but many had the wrong sku/price stickers, so I had to stay behind and fix them, and on some we still came up short because of this.

I have never quite forgiven them for that (and of course I never got overtime for the several hours I stayed behind to do that O_o).