Zelnick: Were not satisfied with losses

Strauss Zelnick, the chairman of US publisher Take 2, has stated that whilst pleased that

the publisher’s latest financial results were better than expected

, he was not pleased to see losses on the up in Q1.

Take 2’s first quarter results were somewhat better than the initial guidance we provided in December,” he said in an investor report reproduced by Seeking Alpha.

That said, we were not satisfied to report a significant loss. We expect this quarter’s loss to represent the low point of our fiscal year and we’re maintaining our prudent outlook and previously stated 2009 guidance.

The interactive entertainment industry enjoyed significant growth in 2008 and performed better this holiday season than many other consumer sectors. We still believe, though, that entertainment isn’t immune to economic downturns that our industry will be negatively affected in 2009. It’s likely the consumers of interactive entertainment will continue to spend cautiously and retailers will also remain challenged in their ability to stock their shelves with the same level of inventory as in previous years.”

Zelnick added that going forwards Take 2 will lower the number of triple-A titles that are released, and making sure those they do release are wholly owned by the publisher.

Our strategy has been to release only a select number of triple-A titles that are internally owned and developed and to enhance our release schedule with a few top quality licensed brands,” he added. We’re confident that this continues to be the right strategy for our business.”