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Take-Two Interactive's Growth Isn't Done Yet

April 28, 2014 | About:
Rustic Nomad

Rustic Nomad

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Take-Two Interactive Software (TTWO) has witnessed tremendous success as its franchise GTA V is booming. Consequently, the company delivered impressive results with thumping holiday demand for Grand Theft Auto V, the record breaking launch of NBA 2K14, and the successful release of WWE 2K14. Besides, digitally delivered content is also playing a major role in the company’s revenue.

Record-Breaking Performance

With over 32.5 million copies being sold, Grand Theft Auto V still looks very promising and going strong. It has broken the record of the fastest selling game in the history of entertainment products and touched over $1 billion in the first three days of its release. This is indeed a terrific performance since the game is only available on PlayStation 3 and Xbox 360, and is yet to hit the PC and new-generation consoles.

Given the fact that Sony and Microsoft have together sold nearly 10 million units of the PlayStation 4 and the Xbox one it becomes tough for the company to penetrate the market. But, the company counts on its next generation consoles and PC to hit the market that is expected to be live in the first week of June. The company will certainly experience another wave of high sales when they launch it. Apart from GTA V, Take-Two’s NBA franchise is also doing well as NBA 2k14 was one of the highest selling games in the month of February. Thus it looks solid to take away the peers market share to certain level.

A Diversified Business

Take-Two also has a WWE franchise that has surpassed the sales expectation in the recently announced quarter. Apart from this, Take-Two is backing the title with add-on content , including a season pass that features several WWE superstars and legends can definitely work in its favor and gain substantial market for the company. These strategic moves such as additional content will enhance gamer engagement that could possibly drive additional revenue and profit for the company.

Consequently, Take-two has released downloadable content for its several games such as BioShock Infinite, Borderland 2, and Sid Meier’s Civilization V similar to its 9 downloadable offerings in the past sixteen months. Take-Two also plans to release more of it in the current fiscal 2014.

Mobile Move

Furthermore, Its Rockstar property has been boosted by the release of Grand Theft Auto: San Andreas for several leading mobile platforms such as iOS and Android based smartphones and tablets. This move will undoubtedly help the company to acquire more audience and generate additional revenue for the company.

However, Take-Two must ensure that the porting of a popular franchise to mobile has to be done almost perfectly, and unlike what its rival Electronic Arts is facing. EA is tapping the mobile gaming market with several popular games such as FIFA 14 and Dungeon Keeper, but its porting hasn't been upto the mark.

Conclusion

Looking ahead, Take-Two will concentrate on next-generation releases from the NBA 2K and WWE franchises. It also has other unannounced titles under development to support the existing games. So, a terrific period lie ahead for Take-Two and investors should hold the stock.


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