* Take Two says fiscal Q3 sales $120 mln to $130 mln

* Q3 adjusted loss of 65 cents to 75 cents

* Shares down 11 percent in after-hours trade (Adds background on games, specifies calendar 2010 in 7th paragraph)

SAN FRANCISCO, July 13 (Reuters) - Take Two Interactive Software Inc (TTWO.O: Quote, Profile, Research) cut its financial outlook for the next two quarters due to the delayed release of its BioShock 2 video game and lower-than-expected retail orders for other titles.

Shares of Take Two slid 11 percent, or 98 cents, to $8 in after-hours trade on Monday.

The New York-based video game maker said it expects to lose 80 cents to 95 cents a share, adjusted, for the fiscal year ending October 31, instead of the break-even to 20 cents a share profit it had previously forecast.

Sales in the three months ending July 31 are expected to total $120 million to $130 million, versus the $145 million to $165 million it forecast in May. The company projected a loss of 65 cents to 75 cents a share on an adjusted basis, instead of an adjusted loss of 55 cents to 65 cents a share.

On a conference call with investors on Monday, Take Two Chairman Strauss Zelnick and CEO Ben Feder said they were seeing "caution" among retailers, which were wary of holding too much inventory.

The decision to delay the release of BioShock 2 was made in order to provide more time for development and to ensure that the quality of the game was up to par, the company said. BioShock 2 is one of the company's most highly anticipated games and an important part of efforts to build new franchises to complement the Grand Theft Auto series of games.