Take-Two Interactive Software Inc. reports financial results after the close of trading Wednesday for its fiscal third quarter. Here’s what you should keep an eye on.  EARNINGS FORECAST: Take-Two is expected to report a profit of 50 cents a share, according to analysts surveyed by Thomson Reuters. It had profit of $1.87 a share a year earlier. These numbers exclude certain items Wall Street thinks aren’t a regular part of doing business.  REVENUE FORECAST: Adjusted revenue is expected to shrink to $452.8 million, according to Thomson Reuters, compared with $954 million a year earlier. Take-Two, like other videogame companies, focuses on adjusted figures because U.S. accounting rules require deferring a portion of revenue from online-enabled games.  –THIN HOLIDAY SLATE. Take-Two didn’t release any major titles during the quarter, whereas it put out both “Grand Theft Auto Online” and a refresh of “Grand Theft Auto V” for newer consoles in the year-ago period. That accounts for the expected steep drop in revenue. Wedbush Securities analyst Michael Pachter thinks demand for “NBA 2K16,” which sold more than four million units in its first week in late September, likely bled into the holiday season. That should help Take-Two top forecasts, he said.  –DIGITAL SAFETY NET. Analysts want to know whether gamers have upped their spending on digital items such as expansion packs and virtual goods. In the year-ago period, digital comprised 28% of total adjusted revenue, up from 17% a year ago. Take-Two Chief Executive Strauss Zelnick said on an earnings call last quarter that digital distribution is a “higher-margin business” and “a key strategic focus” for the company.  –KEY DEPARTURE. The departure of Rockstar North President Leslie Benzies, who led the development of “Grand Theft Auto,” could come up on the call. The franchise is crucial for Take-Two–its biggest revenue driver. Analysts will be wondering who’s going to take charge of the studio and whether it heralds any changes to the game.  –LOOKING AHEAD. Take-Two isn’t expected to release a new installment of any of its major franchises in the current quarter. But on the earnings call, the company might give a progress report on what it hopes will be its next blockbuster, “Battleborn,” which is due out in early May.  ______________________________________________________ For the latest news and analysis, follow @wsjd. And like us on Facebook to get our news right in your feed: Get breaking news and personal-tech reviews delivered right to your inbox. More from WSJ.D: And make sure to visit WSJ.D for all of our news, personal tech coverage, analysis and more, and add our XML feed to your favorite reader.
Take-Two Interactive's thin holiday slate of new videogames is expected to hurt sales of the company. Here's what to expect.