December 28^th, 2004 (12:20am) - Take-Two Interactive released its annual report for the financial year ending October 31, 2004, in which the company saw net sales of $1.13 billion--and a net income of just $65.4 million. This report also outlined a previously unknown clause in Take-Two’s deal with Sega; a part which paves the way for Take-Two to purchase of Visual Concepts, the studio behind the ESPN Videogames, and its subsidiary Kush Games.

"Pursuant to an option agreement with SEGA, we have the right to purchase all of the outstanding capital stock of Visual Concepts and Kush," read the company’s report. "The option is exercisable until the earlier of (1) March 31, 2006 or (2) the termination of our distribution agreement with SEGA. We are currently negotiating the option price, and we are continuing to evaluate potential opportunities in the market for sports titles."

If the deal goes through, Take-Two would then own the rights for ESPN Major League Baseball 2K, ESPN NBA 2K, ESPN NHL 2K, series’, and the ESPN College Hoops series. It would also gain rights to ESPN’s next pro-football game, which due to EA’s exclusivity deal will not feature the NFL.

Take-Two’s report also filled in the details of its recent purchase of Utah-based studio Indie Built from Microsoft.

"In October 2004, we acquired certain assets from Microsoft, including Indie, the developer of the successful Top Spin (tennis), Amped and Amped 2 (snowboarding) and Links (golf) sports games, and the intellectual property rights associated with these products."

While the purchase was already known about, Take-Two paid a surprisingly low $18.5 million in cash for the studio and the rights.

Take-Two has also acquired British developer Venom, who brought us Rocky: Legends. Venom was founded by former Rare staffers in September, and was bought for just under $1.3 million in cash. The Venom purchase means that Take-Two now publishes golf, tennis, snowboarding, a boxing title, and will co-publish football, baseball, basketball, hockey, and college basketball franchises.