Although Rockstar and the GTA franchise remain critically important to the success of Take-Two Interactive, one should not overlook the contributions of the publisher's other franchises. Of particular note is Bethesda's Elder Scrolls RPG franchise.

The latest in the series, The Elder Scrolls IV: Oblivion (Xbox 360, PC), stormed out of the gate, shipping 1.7 million copies to meet worldwide consumer demand. The game has become the fastest selling 360 title to date and the PC version has been topping the charts as well. Thanks in large part to the success of Oblivion, Standard & Poor's Equity Research has upgraded shares of Take-Two Interactive to "hold" from "strong sell."

Standard & Poor's cited better than expected sales for Oblivion, higher expectations for other games, Microsoft's planned push for the 360 in Asia and elsewhere, and positive corporate governance changes for the improved outlook on the publisher.

"Appointing as directors a former judge and a corporate governance expert allays some of our governance concerns, and reduces our assessment of Take-Two's premium," commented lead analyst G. McDaniel, referring to Grover C. Brown, who you can read about in this edition of Industry Movers.

McDaniel increased his fiscal 2006 revenue estimate to $1.15 billion from $955 million and he also narrowed his 2006 loss estimate to 24 cents per share from $1.03. Standard & Poor's has raised its 12-month target on Take-Two to $20 from $13.

Source: Forbes.com