Take-Two Interactive Software, the company behind the Grand Theft Auto video game, delivered a profit warning yesterday and announced the resignation of chief executive Jeffrey Lapin.

Last month its founder and chairman Ryan Brant stood down amid an ongoing inquiry by the US securities and exchange commission into accounting practices.

Take-Two lowered its earnings outlook for the second quarter, ending on April 30, and for the full year. Third-quarter revenue forecasts have been cut from $220m to $170m (£93m) and the company expects to record a loss.

Its shares on Nasdaq were 13% lower at $30.50 in mid-morning trade.

The company cited a delay in releasing Red Dead Revolver, lower than expected sales of older titles and the severance costs for Mr Lapin, whose contract was altered late last year to give him salary, bonus and healthcare for 18 months after leaving.

Chairman Richard Roedel was named interim chief executive.