Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from the line of Heath Terry with FBR Capital Markets. Please go ahead.
Heath Terry - FBR Capital Markets
[inaudible]
Strauss Zelnick
Sorry, Heath, we didn’t actually hear that question on this end -- would you mind repeating it?
Heath Terry - FBR Capital Markets
Sure. I was just saying I was hoping you could give us an idea of what you have seen from your retail partners in recent weeks following the price cuts on hardware.
Benjamin Feder
You know, we haven’t seen -- we don’t have anything to report today on what we have seen from retail. I think our outlook hasn’t changed with respect to retail. We think they are still being kind of tentative and cautious. I think the effect of the price cut is really too early to tell and I know kind of where, you know, [wondering if we’re off cycle] in terms of our competitors but it’s really -- we don’t really have a lot of data to share in terms of what retail is seeing from the price cuts. It’s really just too early.
Heath Terry - FBR Capital Markets
Okay, thanks.
Operator
We’ll take our next question from the line of Daniel Ernst with Hudson Square Research.
Daniel Ernst - Hudson Square Research
Good afternoon. Thanks for taking the call. Two questions, if I might -- first, since earlier this year announcing that the push-out of a couple of big titles maybe gave you a little more breathing room in the development. With that time, have you done any additional restructuring within the organization to [inaudible] or do you feel like the average you get in the first year [inaudible] you know, have gotten teamwork where you want it to be in terms of scale and structure?
And then second question with the increase in games available on things like the iPhone and now PSP Go and maybe DSI Wear and of course Xbox Live, two questions on that. One is where do you think that the size of that direct to consumer digital distribution could go for you over the next one to five years? And then two, is there any comment you can give us on the margin profile of that type of game relative to the box sale? Thanks.
Benjamin Feder
With respect to the product slippage, when we initially slipped the title, we had indicated that we were taking it seriously and that something had -- you know, in our view something kind of didn’t quite work the way it was supposed to work in terms of our greenlight process and our review process, and given the technical complexities of our product development, it’s not entirely surprising but nonetheless, we took it very seriously and we continue to take it seriously.
- To read the full transcript on Seeking Alpha, click here »
