When a company happily accepts a public thrashing from the Federal Trade Commission along with the threat of crippling fines for future violations, you know they must have been really worried about the alternatives.
According to Next Generation, Take-Two CEO Paul Eibeler said yesterday, "We are pleased that the FTC has concluded its very thorough investigation, and that the matter has been resolved. We recognize the importance of the FTC investigation, and the necessity of maintaining public confidence in the ESRB rating system, and helping the ESRB educate parents and consumers about the rating system. We look forward to putting this behind us."
The embattled CEO was reacting to Thursday's FTC Hot Coffee report which said that Take-Two and its Rockstar subsidiary had engaged in deceptive marketing practices and circumvented the industry's rating system. The FTC threatened fines up of to $11,000 per unit sold for future servings of Hot Coffee.
Eibeler made the remarks during a quarterly conference call with investment analysts in which the firm disclosed a $50 million loss for the second quarter of 2006.
Take-Two stock (NASDAQ: TTWO) dropped nearly 14% in overnight trading to 14.45. TTWO has lost roughly half of its equity value since its pre-Hot Coffee high point.
Want to talk about it? You can discuss this story via the "comments" feature (click below), or in the new GamePolitics Forums...