"We thought back in July -- when we first confirmed exceptional retail expectations for Grand Theft Auto: San Andreas -- that TTWO shares would march straight into the high $30s and perhaps to $40 or more," Lennan wrote. "The failure of TTWO shares to get past those levels despite a stellar GTA launch leaves us wondering what will be the next catalyst to $37 and beyond." Lennan downgraded the company's shares to hold from buy; Take-Two is not an investment banking client of W.R. Hambrecht. While both the Grand Theft Auto and ESPN titles are likely to drive future profits, Take Two faces significant risks, noted Smith Barney's Osur in her report. The company is challenging market leader Electronic Arts in the sports arena. Meanwhile, the strategy to release titles for exclusive periods for Sony's undefined PlayStation consoles could hurt the company if Microsoft continues taking market share with its Xbox, she said.