A closer look at the company post-Grand Theft Auto V breaking all records
Navi Mumbai, Maharashtra -- (SBWIRE) -- 09/20/2013 -- Rockstar Games and 2K Games owner Take-Two Interactive Software, Inc. reported this week that retail sales of its newest release, Grand Theft Auto V, crossed $800 million globally. The company achieved this milestone in just its first day of GTA V’s launch. Take-Two’s President Karl Slatoff had stated at the Q1 earnings call this July that “Grand Theft Auto 5 will be the biggest, most dynamic, and most diverse open world game the label has ever created”. He also promised that it would turn out to be this year's ‘must-have entertainment experience’.
At the same event, CFO Lainie Goldstein announced that they expect the majority of revenues in the second quarter to come from Grand Theft Auto V.
A significant contribution, around 65%, of Take-Two’s total revenues for this year are expected to come from Rockstar with the rest, 35%, coming from 2K. Along with the just launched GTA V, Rockstar is also known for some other popular titles such as Max Payne, L.A. Noire, Manhunt, State of Emergency and Red Dead. Max Payne 3 had sold over 4 million units as per their earnings call in May.
2K Games, founded in 2005, has also come out with some interesting titles, most notably Borderlands 2. It has sold nearly 7 million units of Borderlands 2 and expects it to be the highest selling release in the history of 2K. Close on the heels of B2 is NBA 2K13, which has sales of over 6 million units worldwide and is the highest selling and most profitable sports release in 2K’s history.
On the multi-platform side, BioShock Infinite was named North America's best-selling multiplatform release by NPD. Infinite has crossed the 4 million unit mark in sales and CEO Strauss Zelnick expects it to become the top selling release in the BioShock franchise.
Downloadable add-on content remains an important focus area for Take-Two, with Strauss Zelnick stressing on the fact that they need to “delight consumers not just at the time of the initial release, but also on an ongoing basis”. In fact, in the first quarter, thanks to the popularity of Borderlands 2, three downloadable add-on packs were released, namely Ultimate Vault Hunter Upgrade Pack, Psycho Pack and Tiny Tina's Assault on Dragon Keep. Contribution from this area was so significant that Borderlands 2 add-on content turned out to be the single largest contributor to Take-Two’s Q1 earnings.
With a massive $800 million in sales from Grand Theft Auto V’s launch on its first day itself, all attention would be on how its sales progresses through the rest of the year. Take-Two expects significant revenue contributions from the Rockstar franchise as well as future add-on packs.
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