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http://yahoo.reuters.com/financeQuo...tfh37351_2004-12-06_17-51-58_n06570823_newsml
Mon Dec 6, 2004 12:51 PM ET
NEW YORK, Dec 6 (Reuters) - Take-Two Interactive Software Inc. (TTWO.O: Quote, Profile, Research) on Monday said that prices for its sports video games will likely return to higher levels once new game consoles arrive in late 2005 or 2006.
Take-Two, in partnership with Sega Sammy Holdings Inc. (6460.T: Quote, Profile, Research) , has been selling its popular "ESPN" sports games for $19.99 for Sony Corp.'s (6758.T: Quote, Profile, Research) PlayStation 2 and Microsoft Corp.'s (MSFT.O: Quote, Profile, Research) Xbox game consoles. Until last year, those games were published by Sega alone and sold for around $40.
"We continue to evaluate pricing," said Take-Two Executive Vice President Cindi Buckwalter at the UBS Media Week Conference in New York. "When the next-generation hardware comes out, we do expect to introduce the sports products at premium prices."
Take-Two has not yet determined near-term pricing for the coming months.
Many competitors scoffed that Take-Two would not be able to sustain discount pricing on its sports titles, which include basketball, football and hockey, because it would never recoup development and marketing costs.
But in the last few weeks analysts said the games had sold well enough that Take-Two could expect to turn a small profit.
Previously, industry leader Electronic Arts Inc. (ERTS.O: Quote, Profile, Research) routinely outsold the Sega sports games. EA recently slashed the prices of its sports titles in a move to defend market share, analysts said.
Market experts predict that Microsoft will deliver its next console late in 2005, while Sony's PlayStation 3 may arrive in 2006. Neither company has detail its exact plans for new video game consoles.
Mon Dec 6, 2004 12:51 PM ET
NEW YORK, Dec 6 (Reuters) - Take-Two Interactive Software Inc. (TTWO.O: Quote, Profile, Research) on Monday said that prices for its sports video games will likely return to higher levels once new game consoles arrive in late 2005 or 2006.
Take-Two, in partnership with Sega Sammy Holdings Inc. (6460.T: Quote, Profile, Research) , has been selling its popular "ESPN" sports games for $19.99 for Sony Corp.'s (6758.T: Quote, Profile, Research) PlayStation 2 and Microsoft Corp.'s (MSFT.O: Quote, Profile, Research) Xbox game consoles. Until last year, those games were published by Sega alone and sold for around $40.
"We continue to evaluate pricing," said Take-Two Executive Vice President Cindi Buckwalter at the UBS Media Week Conference in New York. "When the next-generation hardware comes out, we do expect to introduce the sports products at premium prices."
Take-Two has not yet determined near-term pricing for the coming months.
Many competitors scoffed that Take-Two would not be able to sustain discount pricing on its sports titles, which include basketball, football and hockey, because it would never recoup development and marketing costs.
But in the last few weeks analysts said the games had sold well enough that Take-Two could expect to turn a small profit.
Previously, industry leader Electronic Arts Inc. (ERTS.O: Quote, Profile, Research) routinely outsold the Sega sports games. EA recently slashed the prices of its sports titles in a move to defend market share, analysts said.
Market experts predict that Microsoft will deliver its next console late in 2005, while Sony's PlayStation 3 may arrive in 2006. Neither company has detail its exact plans for new video game consoles.