July 15th, 2006

Long, Hot Summer Keeps the Heat on Take Two

Summers haven't been much fun at Take Two Interactive, of late. Last year, of course, the Hot Coffee scandal unwound itself in agonizing daily steps throughout the month of July. This summer, water cooler gossip must be equally tense around Take Two Interactive's Lower Manhattan digs.

Although last month's Federal Trade Commission (FTC) report on the Hot Coffee affair resulted in a mere slap on Take Two's corporate wrist, developments since then have been almost exclusively negative for the controversial game publisher. Let's recap:

June 25th: CNN reports that T2 canceled upcoming PC game Snow, a drug-dealing simulation deep into development.

June 27th: GamePolitics and other sources pick up on a New York Post report that the Manhattan District Attorney's Office has issued "unusually wide-ranging" subpoenas dealing with Hot Coffee as well as the way in which T2 reported "key financial information" related to "acquisitions, partnerships and the recent dismissal of its longtime auditor, PricewaterhouseCoopers."

June 27th: Wedbush Morgan analyst Michael Pachter says, "It is likely that one or more Take Two employees may be subject to a potential criminal indictment." Wow!! Take Two execs be doing the perp walk?
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