Rockstars two most popular online properties have helped to power Take Two to $299 million in profits in the first quarter of its fiscal year.
Take-Two Interactive, owners of Rockstar Games, has had an extraordinary first quarter. The company posted a $299 million profit in the first quarter of the fiscal year 2020. Take-Two Interactive CEO Strauss Zelnick said that the vast profits are due to GTA Online and Red Dead Online exceeding expectations.
Both titles generated a great deal of revenue through in-game purchases. These purchases over the previous three months generated 58 percent of the total net income. GTA Online continues to defy market trends by growing larger each year. Over the six years since it released, it has become the highest-grossing entertainment property of all time.
It could become a phenomenal year for Take-Two Interactive, as they are releasing Borderlands 3 and The Outer Wilds later this year. According to a report from the Hollywood Reporter, the quarterly profits have been so good that Take-Two adjusted projections for the rest of the fiscal year. For the second fiscal quarter, they are expecting revenue of $905 million, up from $855 million. The projects for the entire fiscal year have gone from $2.8 billion to $2.9 billion.
The take-home lesson for gamers from this is that you can expect both GTA Online and Red Dead Online to be around for a long time. It is highly unlikely there will be any change in its monetization program. Whether you feel that is a good thing or a bad thing will boil down to your spending habits.
Published: Aug 6, 2019 01:12 pm