Take-Two Interactive stunned the video game industry by announcing it was delaying its highly anticipated holiday release of “Grand Theft Auto IV” until the second quarter of 2008, which begins February 1, 2008. Published by Rockstar Games, the crime-action title was originally slated to ship for Xbox 360 and PlayStation 3 on October 16, 2007.

“Certain elements of development proved to be more time-intensive than expected, especially given the commitment for a simultaneous release on two very different platforms,” said Take-Two chairman Strauss Zelnick.

Unsurprisingly, not having GTA IV in its 2007 fiscal-year lineup has put a serious dent in Take-Two’s earnings expectations. The company’s guidance is now for net revenue of $950 million to $1.0 billion for the 12 months ending October 31.

That figure is over $200 million lower than prior estimates of $1.25 billion in annual revenue–which would have been “break even results” according to the company’s second-quarter earnings statement.

With the AO-rated (Adults Only) Manhunt 2 on indefinite hold, Take-Two now expects net revenue between $275 million to $300 million for its fourth fiscal quarter.

“Obviously, we are very disappointed after having previously reaffirmed it,” said Take-Two CEO Ben Feder. “Other than a matter of timing, the movement of Grand Theft Auto IV does not compromise us. We are in sound financial condition and have a great product lineup.”

The good news is that Take-Two does have awesome original content and a great line up. At least they are delaying the release to better the game. I would rather wait another year to get a Perfect 10 game than shell out $60 now for a glitchy game.

- Molly Celaschi