Take-Two Sees Massive Increase In Digital Sales, Profit
Take-Two is best known for its wide array of open world games including Grand Theft Auto, Red Dead Redemption, and Borderlands 2. They are also responsible for 2k Sports, which saw its NBA title do quite well last quarter.
Over the last fiscal quarter ending on December 31, 2012, Take-Two managed a revenue of over $400 million, a 71% increase over the same quarter a year before, providing a net profit of $78.8 million, an increase of a massive 148%. According to Take-Two, the release and support of three main titles last quarter supported the growth, namely NBA 2K13, Borderlands 2, and XCOM: Enemy Unknown.
Perhaps the most expected, and impressive, stat is that the digital sales of games and content rose a staggering 244% since last year, accounting for 23% of total sales. They attributed this to their offerings of the three previously stated games and their applicable content, as well as downloadable content for Grand Theft Auto IV.
Catalog sales, primarily anchored by Grand Theft Auto IV and Red Dead Redemption, also did well, accounting for 22% of total revenue.
Take-Two’s cash and cash-equivalent assets now rest at just under $450 million. This buffer gives the company all the assets it needs to guarantee that their upcoming games are the best they can be and that they continue to see growth through 2013.
According to the press release, the anticipated big releases in the coming year include Grand Theft Auto V, MLB 2k13, and a tentatively titled MMOG called Civilization Online, based on the popular Civilization franchise. Civilization Online is set to launch on Asian markets first, and it is being developed by Firaxis with the help of South Korea based XLGAMES. Jake Song, currently the CEO of XLGAMES, was a leading contributor in the development and production of Lineage, a wildly popular Korean MMORPG, which has attracted over 43 million players.
Do you think they had these statistics on hand when they decided to push the release date of Grand Theft Auto back? Maybe with the extra profit on hand, they knew they could afford the extra time to make the game perfect at launch, instead of launching with a day one patch like many games do these days (not to say GTA V won’t have day one patches, but a man can dream can’t he?) and polishing every detail to perfection. After seeing what was done in Red Dead Redemption, the capabilities of the current gen console are still being explored, and likely won’t be fully realized until shortly before the next gen consoles are available (which if popular rumors are true could be as early as this Fall). Take-Two is poised to be an even bigger force in the gaming industry, chipping away at the market share of the giants while becoming even bigger themselves.