Grand Theft Auto delay hits firm

Earlier versions of Grand Theft Auto have been controversial

Shares in the firm behind popular computer game Grand Theft Auto fell 16% after it said that its latest version of the popular game would be delayed.

Take-Two Interactive Software said the late arrival of Grand Theft Auto IV meant it would record an annual loss.

The game, which had been scheduled for release in October ahead of Christmas sales, is now due in mid 2008.

The news is a blow to Microsoft and Sony who had hoped it would help lift sales of their games consoles.

"It's a disappointment that the game won't come out in the holiday period. It's one of the biggest games of all time," said Janco Partners analyst Mike Hickey.

"This is probably going to hurt the sell- through of the (Sony) Playstation3 and (Microsoft's) XBox 360."

Shareholders unhappy

Take-Two has had a turbulent couple of years, coming under fire for poor results, accounting problems and controversy over one of its games.

The New York firm has been accused of overstating profits and now faces a formal stock options probe.

It has also been criticised for the graphic sexual content of one of its Grand Theft Auto games, which was withdrawn from many shops.

Earlier this year, unhappy shareholders removed the New York firm's chief executive and most of its directors.

In June it said it would cut jobs as it sought to reduce costs by $25m (£12.6m) a year by 2008.