While LA Noire has proven to be a decent tile for Take-Two, Wedbush analyst Michael Pachter says that the poor showing of Duke Nukem Forever has eaten away at those profits. In a note to investors today, Wedbush analyst Michael Pachter lowered his expectation for Take-Two's quarterly revenues, saying that bad performance from Gearbox Studios' Duke Nukem Forever have offset the stronger-than-expected sales of Rockstar's L.A. Noire.
"We had previously expected Duke to be one of the year's top sellers due to a high degree of hype and a dedicated fan base, and expected solid profit contribution as the bulk of development had been previously expensed," Pachter told investors. "However, the game's poor reviews (average Metacritic score of 49) likely had a negative impact on sales, causing us to lower our [first quarter] sell-in estimate to 1.5 million units from 3 million units."
Examining L.A. Noire, Pachter said that he expected the game to ship 3.5 million copies, but had to adjust that figure after Take-Two revealed that 4 million copies had shipped to retail outlets.
That extra half-million or so copies of L.A. Noire were not enough to offset the poor performance from Duke Nukem Forever. Because of those factors, Pachter revised his revenues estimates for Take-Two's quarter to $350 million, down from $375 million.