Wall Street, in this case, is no more forgiving than the bloody streetscapes of today's most popular video games. Just ask Take-Two Interactive (NASDAQ:TTWO), which was knocked 4% in early trading after it issued lackluster Q2 numbers.

Sure, we've long suspected that disappointment was on the way. But that didn't make today's announced 21% drop in revenues look any better. The slimmer $153 million in sales put a big hurt on earnings or, more accurately, losses. The red ink totaled $0.33 per share, a big disappointment compared to last year's positive $0.35 per stub. The loss was greater than the $0.15 analysts expected.

Sure, you might say it's not fair to compare quarters like this one with previous time periods that benefited from Grand Theft Auto. But the fact is, investors are paying for companies that can keep delivering the goods. Motley Fool Stock Advisor picks Activision (NASDAQ:ATVI) and Electronic Arts (NASDAQ:ERTS) seem to be doing just that, but Take-Two is fading. Games like the gory creep show Manhunt just haven't picked up the slack, leaving the firm with little option but to warn investors to expect less.

Guidance numbers have been dropping faster than virtual thugs meeting the business end of a meat cleaver. Full-year guidance released today is for $1.63 per share, an 18% drop from the last guidance and a full 34% less than March's full-year fantasy of $2.45 per share.

Management shuffling and accounting shenanigans present other hurdles to any investor who thinks that a recent drop in share price might put the stock in the land of screaming values. Companies are sometimes cheap for a reason. And until Take-Two does better, reasonable investors should look elsewhere.

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Fool contributor Seth Jayson needs a dose of virtual killin' every day, but he owns no company mentioned. View his Fool profile here.