Take-Two Jumps on the iPhone App Train with 'Beaterator'

Take-Two Interactive (NASDAQ:TTWO) owns perhaps the most talented and best game studio on the planet Rockstar Games.  Rockstar is bringing BEATERATOR to Apple Inc's (NASDAQ:AAPL) iPhone and iTouch this fall.  Featuring original music and a sound-kit which includes thousands of loops and sounds produced by Rockstar and multi-platinum producer and entertainer Timbaland.

Take-Two shares could use the help of Beaterator to get investors wanting more and help TTWO stay above the $10 range.  Take-Two shares have recovered since hitting the $5 range, YTD shares are up 41%.

Last week Take-Two shares jumped after the company reported a loss of $55 million in Q3 2009. Analysts and investors alike seemed pleased with the overall performance, with Wedbush Morgan's Michael Pachter noting his belief that while challenges remain the company should have a strong financial year next year.

"Despite the execution missteps, we think that Take-Two shares should be valued on next year's earnings, and believe that solid profits next year and a Grand Theft Auto announcement will trigger outsized share appreciation," he wrote in a note to investors, maintaining an Outperform rating.  

MORE ON BEATERATOR

Developed by Rockstar Leeds, Beaterator is a portable music-making application that allows people of all musical backgrounds and ability to create beats and songs.

"The simple, pick-up-and-play nature of Beaterator lends itself so well to the Apple platforms," said Sam Houser, Founder of Rockstar Games. "We are happy to deliver an application that allows for such sharing and ease-of-use."

Previously announced for the PlayStationPortable system, Beaterator features thousands of loops and sounds made by hip-hop artists Timbaland and Rockstar, and puts the power to make professional-level music at users' fingertips in a format that's portable.

As long as Take-Two continues to deliver hits, there's a good case to pick-up a few shares while they are in the $10 range.  So will BEATERATOR be a hit?  Its tough to say, but its a step in the right direction for shareholders as the company finally branches out to iPhone applications.

Rockstar Games continues to release incredible titles such as GTA add-on's (The Ballad of Gay Tony coming soon as well as Episodes From Liberty City) however the analysts are still waiting on sales numbers before changing any future estimates.  Time will tell if GTA add-on's are worth the R&D.

Enjoy the trailer to BEATERATOR:

Disclaimer: No positions in TTWO.