Take-Two Interactive (TTWO) begins to fall apart, again

Take-Two Interactive (NASDAQ: TTWO) has been through accounting problems, management scandals, and executive turnover. When the company brought in new shareholders and media executive Strauss Zelnick investors hoped that the companies problems might be in the process of being solved.

But, yesterday, the news for the company got much worse. It is delaying the release of the latest version of its hit game "Grand Theft Auto". It also revised down its numbers for the year. There will be a ripple of troubles from the delay which will hit sales of Sony's (NYSE: SNE) Playstation 3 and Microsoft's (NASDAQ: MSFT) Xbox 360. The game is so popular that it was expected to improve sales of the consoles. An analyst from Pacific Crest told The New York Times: "This is very bad for Sony and its ability to sell PlayStation hardware."

As Herb Greenberg at MarketWatch points out, this is the latest in a long list of problems at Take-Two. He writes: "Consider that on a July 9 conference call to update investors on a 100-day plan under the new regime, new Chairman Strauss Zelnick, portrayed as a savior, reaffirmed guidance. Now the company is taking down guidance for the third and fourth quarters and the full year."

That is not working out. Shares of Take-Two fell over 14% after hours to $14.50, about $1 away from its 52-week low.

Take-Two is back on the critical list again.

Douglas A. McIntyre is a partner at 24/7Wall St.com.