Language Selection

English French German Italian Portuguese Spanish

"Hot Coffee" Still Burning Take Two

Filed under
Gaming

US analysts have warned that Take Two may face investigations from the Federal Trade Commission and the Securities and Exchange Commission after the company reduced its Q3 revenue guidance by $40 million in the wake of the Hot Coffee scandal.

Commenting in a research note yesterday, Banc of America Securities analyst Gary Cooper said that "regulatory risks remain for Take Two" and described a class action lawsuit over the matter as "inevitable."

"Some political figures are agitating for an FTC investigation on the grounds of indecency and/or false advertising related to GTA San Andreas and the original product rating," he said, going on to note that the company has not created an exchange or return programme for the 12 million already sold copies of San Andreas, something which the FTC could push it to do.

It's not just the Federal Trade Commission which may look at Take Two now, however; Cooper warned that several stock transactions over the past few weeks could also come under scrutiny from the Securities and Exchange Commission.

"Several TTWO insiders, including Chief Operating Officer Gary Lewis sold common shares recently," he noted. "Lewis sold 20,000 shares on July 13th and filed to sell 40,000 shares on July 19th. The SEC could choose to investigate these sales. It remains unclear as to when the ESRB investigation began."

It's not just these investigations which concern Banc of America Securities, however; in the firm's research note, Cooper also questions whether there could be more far-reaching effects for the GTA franchise as a whole.

"Lots of stakeholders are upset," he commented, "from retailers to 1st party platform providers to the game-rating agency to politicians and regulatory authorities. Rockstar and TTWO might now face a dilemma about the adult-content and risque nature of GTA."

"Will the company soften GTA content?" he asks. "It seems unlikely to us that this will happen. Still, pressures will mount and scrutiny will intensify surrounding the next release of GTA, which is scheduled for October of 2006."

However, Wedbush Morgan Securities' Michael Pachter doesn't agree that the scandal will have a major impact on Grand Theft Auto going forward.

"We do not expect this issue to recur," Pachter said today.

Full Article.

More in Tux Machines

Linux Mint 18.1 'Serena' KDE Edition Beta is available for download now

A Beta release for Linux Mint 18.1 'Serena' KDE is here. There are already versions available featuring other desktop environments, such as Cinnamon, Mate, and Xfce. You'd think that would be enough, but no! Apparently a fourth edition is needed. Some people feel that a KDE version is a waste of resources, but either way, here we are. So what is new? The KDE Plasma 5.8 desktop environment is the star of the show -- after all, if you do not want KDE, you wouldn't choose this version. The shipping Linux kernel is 4.4.0-53, which is surprisingly outdated. Ubuntu-based operating systems are never known for being bleeding-edge, however. Read more

64-bit Raspberry Pi Compute Module 3 ships for $25 to $30

The Raspberry Pi Compute Module 3 has arrived with 1GB RAM and the same quad-core -A53 SoC as the RPi 3, available for $30, or $25 without 4GB eMMC. Raspberry Pi Trading’s first 64-bit computer-on-module version of their flagship single board computer has finally arrived. Despite the name, the Raspberry Pi Compute Module 3 (CM3) is only the second generation of the CM1. Its name syncs up with the Raspberry Pi 3 Model B SBC, which uses the same quad-core, 64-bit Broadcom SoC. The CM3 is now shipping in $30 Standard (4GB eMMC) or $25 Lite versions, while the CM1 drops in price to $25. Read more

Panasonic Toughpad Rugged Tablet Muscles into Android Space

Panasonic Jan. 12 unveiled a new tablet in its Toughpad series of devices designed for the corporate world. But unlike so many other rugged Panasonic machines, the FZ-A2 doesn’t run Windows. Instead, the device is running on Google’s Android Marshmallow, an operating system not typically associated with rugged PCs and mobile devices designed for rough-and-tumble field-service work. But the FZ-A2 is just the latest model in Panasonic's expanding line of Android tablets. This new Toughpad includes several corporate-friendly features such as robust security, a hot-swappable battery and plenty of ports that allow connection to a wide range of accessories. The Toughpad is launching at a time when market reports have consistently shown a steady decline in popularity of tablets. But Panasonic says its device is coming along at the right time. This slide show will take a look at the Toughpad to see whether its features will convince field-service workers and corporate hardware buyers that the tablet really is as appealing a buy as Panasonic claims it is. Read on to learn more about Panasonic’s FZ-A2 Toughpad. Read more

LXQt Spin Proposed For Fedora 26

A new spin/flavor has been proposed for Fedora 26, one integrating the LXQt desktop environment. For those late to the party, LXQt is the formation of the LXDE and Razor-qt projects and built around the Qt5 tool-kit. Fedora currently has an LXDE spin while this proposed Fedora LXQt would continue to co-exist alongside the existing LXDE version. Christian Dersch who proposed the LXQt spin explained, "LXDE spin will exist until its maintainer will stop it, LXQt is independent from LXDE spin. So nobody is forced to change ;) Also both projects are maintained upstream so there is no reason to drop anything here." Read more Also: F26 Self Contained Change: LXQt Spin