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Take-Two's (TTWO) Borderlands 3 Launch Boosts Gaming Lineup

Zacks Equity Research

Take-Two Interactive Software TTWO recently launched Borderlands 3, the enhanced virtual reality version of the “shooter-looter” franchise on PlayStation 4, Xbox One and PC via Epic Games Store.  

Notably, Borderlands 3’s Standard Edition is priced at $59.99. The Deluxe Edition comes with bonus digital content priced at $79.99. Moreover, Super Deluxe Edition, available for $99.99, comes with bonus digital content and the Borderlands 3 Season Pass, which includes four gaming packs featuring new stories, missions and challenges.

Like its predecessor, Borderlands 3 also includes four playable vaults namely — Moze, Amara, FL4K, and Zane. Additionally, the world of Borderlands 3 expands beyond Pandora, to hostile deserts, war-torn cityscapes and more.

The game introduces a number of unique features. Notably, the new Level Sync System, which lets players of any level play together, is expected to be a game changer.

Take-Two Interactive Software, Inc. Price and Consensus

Take-Two Interactive Software, Inc. Price and Consensus

Take-Two Interactive Software, Inc. price-consensus-chart | Take-Two Interactive Software, Inc. Quote

Expanding Portfolio: A Key Catalyst

Take Two’s expanding portfolio, post the release of Borderlands 3, is a key catalyst. The company has a strong slate of releases lined up for second-quarter fiscal 2020 that includes Borderlands 3, Ancestors: The Humankind Odyssey and The Outer Worlds.

The strength of Borderlands series lies with its loyal user base. The first-person shooter role-playing game franchise has sold more than 48 million units worldwide to date.

Notably, the most popular title in the Borderlands 2 series, launched in 2012, still has more than 1 million unique monthly users.

Additionally, Ancestors: The Humankind Odyssey launched for PC through Epic Games Store will be available on PlayStation 4 and across the Xbox One devices in December 2019.

Moreover, The Outer Worlds, scheduled for launch on Oct 25, is expected to be one of the largest contributors to second-quarter fiscal 2020 net bookings, projected between $860 million and $910 million.

Notably, in first-quarter fiscal 2020, Take-two’s net revenues surged 39.3% from the year-ago quarter to $540.5 million. The growth was driven by robust performance of Red Dead Redemption 2 and Red Dead Online, NBA 2K19, Grand Theft Auto Online and Grand Theft Auto V, WWE 2K19 and WWE SuperCard, Social Point’s mobile games, the Borderlands franchise, and Sid Meier’s Civilization VI.

Portfolio Strength to Fend Off Competition

Take-Two faces significant competition from the likes of Activision ATVI, Electronic Arts EA and Gluu Mobile GLUU, among others.

Notably, EA has a solid lineup of releases, including the upcoming NBA Live 20, Plants vs. Zombies, and Star Wars Jedi: Fallen Order. Moreover, Activision’s upcoming Call of Duty: Modern Warfare is a game changer.

Nevertheless, we expect Take-Two’s portfolio strength, based on its strong slate of releases, to provide it a competitive edge in the near term.

Currently, Take-Two carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here

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