2K Sports 2004 Annual Report Download - page 5

Perhaps our biggest coup was our recently
announced long term, third-party exclusive pub-
lishing relationship with Major League Baseball.
As a result, we will be releasing a broad line-up of
officially licensed MLB titles for console, PC and
handheld platforms beginning in Spring 2006.
More recently, we announced our participation in
the National Basketball Association's program of
non-exclusive, multi-year licensing agreements to
develop, publish and distribute NBA video games.
Also in fiscal 2004 we acquired Mobius
Entertainment, now known as Rockstar Leeds, a
developer focused on handheld platforms, includ-
ing Sony's recently released PSP™ handheld enter-
tainment system. Our internal development
capabilities now exceed 1,000 people worldwide.
Our Jack of All Games distribution business was an
important contributor to our success in fiscal 2004.
Although reduced availability of hardware, an
industry-wide issue during the year, somewhat hin-
dered the top-line performance of our distribution
business, Jack of All Games was still able to gener-
ate sales that nearly equaled its strong perform-
ance in fiscal 2003. Additionally, Jack of All Games
maintained its position as the leading distributor of
video game products in North America.
Foundation for Growth. At Take-Two, we know
that our ability to create shareholder value is
directly linked to our capacity to provide con-
sumers with leading-edge products and a great
game experience. We are tremendously excited
about our product line-up for the current fiscal
year. Rockstar has recently released
Midnight Club
3: DUB Edition
for PlayStation 2 and Xbox®, with
the PSP version to follow. Later this year, Rockstar
will be releasing
The Warriors for the PlayStation 2
and Xbox; and a new Grand Theft Auto title for
PSP. Rockstar will also be extending Grand Theft
Auto: San Andreas
to the Xbox and PC this sum-
mer, and will introduce a PlayStation 2 version in
Japan later in fiscal 2005.
Our new 2K Games label has an aggressive launch
schedule over the next 12 to 18 months, including
Charlie and the Chocolate Factory on multiple
platforms; Civilization IV for PC; The Elder Scrolls
IV: Oblivion
for PC and a next-generation console
system; Sid Meier's Pirates! for Xbox; Conflict:
Global Terror
, Carmageddon and Reservoir Dogs
for console and PC; Prey for PC and a next-genera-
tion console system; and World Poker Tou r on mul-
tiple platforms. In the family gamer category, 2K
Games will be releasing Dora the Explorer and
Code Name: Kids Next Door for console. 2K
Sports recently introduced Major League Baseball
2K5
for PlayStation 2 and Xbox, and will be releas-
ing basketball, hockey, tennis, golf, snowboarding
and other sports titles.
Financial Highlights. Take-Two's net sales rose
9.1% to $1.1 billion for fiscal 2004, reflecting a
sharp increase in publishing revenues driven by the
performance of
Grand Theft Auto: San Andreas ,
partially offset by a slight decline in distribution
revenues. Net income was $65.4 million, or $0.95
per share on a diluted basis, compared with $98.1
million, or $1.51 per share a year earlier. These per
share numbers reflect a three-for-two split of our
common stock effected in April 2005. However, the
share and per share data contained in our Form
10-K included with this Annual Report does not
reflect the stock split, which was completed subse-
quent to our fiscal year end.
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