Typical lies and pumping. Sony and MS take 30% cut on their store, so instantly that figure becomes just over $100M. And it "only" needs a tie ratio of nearly 30% you say, which would be impressive even if many millions of gamers hadn't already upgraded to next gen.
The problem of too many players has certainly been solved. In the month after launch I recall about 20 Friends on my 360 list playing the game. I just checked now, one single person recently played it... 45 days ago.
This BL game should be profitable, but it won't be good for margins. Say it sells a couple million, you know Gearbox will be taking a good sized royalty, add development, marketing, etc. That leaves slim margins.
Investors and analysts want to hear about the steak, and TTWO serves up hamburger while its own execs continue to dump their shares.
Who cares about a 360/PS3 BL game this holiday season, which is also not 100% done by Gearbox? I've been a big fan of BL, and I don't care. Not many people cared for GoW Judgment or Batman Arkham Origins either, both done by different teams from the original creators, and that was before many people had upgraded their consoles.
Anyway, I don't for one second think today's move is related to that. The whole sector has been over-valued for months, it's about time some air was let out. ATVI was down about 4% a day or two ago, EA today, TTWO today. If you look at what they're expected to earn this year, plus company specific issues (insider selling at ATVI/TTWO, franchise weakness at ATVI/EA, lack of transparency from TTWO), they're still not cheap.
The relative strength compared to the other pubs was likely due to the UK Govt allowing 20% tax credits for certain development. Assuming that applies to TTWO's UK studios, that's a net benefit, and I'm fairly sure TTWO has more developers in the UK than the other pubs, especially relative to its total headcount.
Stock moves 2.5% in opposite direction of market, on no news, and nobody is complaining about manipulation here? Hmmm..... seems like some people only fake their concern about manipulation when it affects their portfolio.
The timing is ridiculously suspicious, in that it's a weekday? Or perhaps the only price you'd not consider a downgrade to be some conspiracy theory would be $75 or above?
So when the stock goes up 15% in a month on no news, that isn't manipulation? But when an analyst downgrades because it's $22 and isn't likely to average over $1 per year next couple of years, that's what you call manipulation?
The topic was asking why all the game stocks were doing well. The post I replied to suggested NPD for the sector was "better than expected". My post listed sector NPD for the last 4 months. So yes, the information was relevant to the topic.
Regarding the so-called "better than expected" sales figures, no way did any analyst originally have forecasts worse than the recent NPD results:
By my calcs, March would have to +30% for Q1 to have any growth at all.
Yes that has reduced burn rate but also:
- No Bioshock team means no Bioshock, so any assumptions for $200M revenue from that franchise in the next few years are gone.
- ZelnickMedia cash grab with their new deal.
- Does the Czech studio situation extend the development time for Mafia, which means higher expenses?
I use hundreds of ID's on Yahoo? Wow, what happened to this crusade for truth you're pushing for in literally the same post?!!!! To avoid being a laughing stock, please, please consider reading your own posts before hitting the Post button. Better yet, have a sane person proof read them.
LOL "truth pledge". Because cutting and pasting some text anonymously means anything. As for me, I've been on record in recent months as being long the stock and have barely posted recently, but in the conspiracy theorists drug fuelled mind that makes me "one of the chief bashers". Because logic? You should read your posts some time before hitting the Post button, it might persuade you not to.
Huh. Oh well, must have been a coincidence if some poster only ever traded one stock, knew inside info about it, fought hard to keep his identity a secret, then disappeared. But you've said that isn't the case and you've cut and pasted a wall of text that proves it, somehow, and your defense of such actions is therefore not suspicious in any way.
"Gone are the updates by Harry3866 from NJ Federal Court, where Marc Cohodes tried to force a Federal Judge to make Yahoo give up the real identities of Harry3866"
Was he the guy who was outed as using inside info to pump TTWO here, and is that why he fought so hard to keep his identity secret?
"Did you know that half of the Call of Duty games have been made by a different studio that had nothing to do with the original people who created Call of Duty? And now ALL of the studios making Call of Duty don't have the original people."
The latest CoD was the lowest rated in the series, sold below last years despite more discounting, and is currently on sale for $19.99. How did the Max Payne franchise do without Remedy? One sequel in 14 years and it didn't do well, and the studio was closed.
If you assume infinite earnings in the future, like with TWTR and TSLA also, and then the company makes less money than expected in the present, it follows that the growth rate into the future must be higher. Therefore, stock goes higher.
Oh wait, you asked for a rational reason. Sorry, there aren't any.