While the video game industry has been abuzz with activity ever since the Nintendo Wii and Sony PlayStation 3 launched back in November, there is evidence that not all is well in the land of Mario, Master Chief, and even Tommy Vercetti.  In fact, two of the most impressive game companies – developer Ubisoft and publisher Take-Two – have posted 2006 revenue losses.  It may be a sign that although console launches make for exciting times, the slow parade of titles afterwards is evidence of a tough transition for those making the games.

In December, Gamespot reported on Montreal-based Ubisoft’s red-revenue status for the preceding financial quarter.  The extraordinarily reliable developer, known for the Rainbow Six, Splinter Cell, and Prince of Persia franchises, was left $47 million in debt, despite impressive sales of the Xbox 360 title Ghost Recon: Advanced Warfighter. 

Now Take-Two Interactive, publisher of the phenomenally controversial and popular Grand Theft Auto series, is posting its own lowered revenue.  The company has been struggling to report its financial statistics since June of last year, after a stock option scandal surrounded CEO Ryan Brant.  In the settling dust lay a worrisome $184.9 million in losses for 2006.

Take-Two has blamed a number of factors for its troubles, but the most noteworthy may be the difficult transition to newer consoles.  The company was rather quiet during 2006, with much of its resources being filtered into big-budget and highly-anticipated 2007 releases, like The Darkness and most notably Xbox 360 exclusive BioShock. 

For developers, making adjustments to accommodate new game systems is a long and frustrating process.  For gamers, it’s evidence that the best is yet to come.