Take-Two's Ben Feder will be departing as CEO at the end of the year.
According to Take-Two, Feder's decision to leave was rooted in his desire to "pursue plans to travel in Asia with his family for an extended period." Take-Two executive chairman Strauss Zelnick will take over the company as CEO effective January 1.
Feder became Take-Two's acting CEO and a board member in March 2007. In 2008, the company officially appointed him to the CEO post with a management agreement that extended through October 31, 2012. Prior to joining Take-Two, Feder was CEO of voice-messaging company MessageClick. He was also a senior executive at News Corp.
With his early departure, Feder leaves behind a company that has had trouble over the years weaving its way through the difficult gaming landscape.
Over the past four years, Take-Two generated a profit just once. In 2008, the company was in the black for $97.1 million on $1.54 billion in revenue. Much of that success was flanked by steep losses in 2007 and 2009. During the company's last fiscal year, which ended on October 31, it generated $968 million in revenue and lost $137.9 million.. However, 2008 was
Recently, Take-Two announced plans to shift its fiscal year end from October 31 to March 31. However, the company still plans to report its past twelve months in December. Take-Two has generated $785 million in revenue during the first nine months of its fiscal year, and posted an $11.19 million loss.
At the same time, Take-Two is being dwarfed in the gaming space. The company's top competitors, Electronic Arts and Activision Blizzard, each generate about $3 billion to $4 billion in revenue annually. Like Take-Two, Electronic Arts has suffered some difficult years, posting a $1 billion loss in 2009 and a $677 million loss in 2010. Activision Blizzard was in the black last year, generating a $113 million profit. In 2008, it lost $107 million.
Take-Two shares are up 1 percent in early trading.