Take-Two's (TTWO) Older Games Get a Boost Ahead of GTA 6 Release
Take-Two Interactive Software’s TTWO highly anticipated video game, Grand Theft Auto 6 or GTA 6, is expected to be released in early 2025. News about the title has boosted player engagement in older games within the franchise.
Grand Theft Auto 5 and Grand Theft Auto Online have experienced a significant surge in engagement since the release of the first trailer of GTA 6 on Dec 4.
Based on active player data from Steam, it estimates a year-over-year increase of approximately 50% in daily peak players for GTA 5/Online since the release of the GTA 6 trailer, even though Take-Two has not provided a precise release date for Grand Theft Auto 6.
This heightened engagement might result in increased bookings for Take-Two in the December quarter, inspiring a strong rise in interest for GTA.
The Zacks Consensus Estimate for TTWO’s third-quarter fiscal 2024 bookings is pegged at 1.33 billion, indicating a year-over-year decline of 3.4%. The Zacks Consensus Estimate for earnings is pegged at 72 cents per share, indicating a year-over-year decline of 22.58%.
Shares of this Zacks Rank #3 (Hold) company have gained 55.1% year to date compared with the Zacks Consumer Discretionary sector’s rise of 16.9% due to blockbuster games like FIFA and GTA. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Take-Two Interactive Software, Inc. Price and Consensus
Take-Two Interactive Software, Inc. price-consensus-chart | Take-Two Interactive Software, Inc. Quote
Take-Two Faces Tough Competition in the Video Game Market
Despite having a strong pipeline of upcoming releases, the company faces tough competition from key market players, including Ubisoft Entertainment UBSFY and Microsoft MSFT.
Ubisoft Entertainment, headquartered in Saint-Mandé, is a well-known French video game publisher with a strong presence in the global gaming market. Recognized for blockbuster franchises, such as Assassin's Creed, Far Cry and Watch Dogs, UBSFY continues to exert influence and attract gamers worldwide.
In the domain of Microsoft's Xbox, the anticipated release of captivating titles like Wordless, Deserted and Farm Builders is expected to create a competitive environment against other industry participants. The gaming landscape is set for dynamic and immersive experiences across different platforms and franchises in the upcoming months. Bright growth prospects have prompted intense competition for Take-two.
According to a Grand View Research report, the global video game market, valued at approximately $217.06 billion in 2022, is projected to witness a compound annual growth rate of 13.4% from 2023 to 2030. The industry's expansion is credited to the persistent rise in online gaming, the emergence of high-speed network connectivity and sustained demand for 3D games.
Furthermore, the increased prevalence of smartphones has enhanced the accessibility, portability and social aspects of video games, contributing to industry growth. The ongoing development of technologically advanced and more powerful smartphones by market players is a strategic focus, which is aimed at attracting a larger customer base and positively influencing the overall gaming industry.
Take-Two has partnered with Netflix NFLX to integrate the highly popular video game trilogy, Grand Theft Auto: The Trilogy – The Definitive Edition, into the latter's gaming platform. Released on Dec 14, NFLX subscribers have access to the trilogy on the App Store, Google Play and within the Netflix mobile app. The inclusion of Grand Theft Auto: The Trilogy is anticipated to greatly augment the content and attractiveness of NFLX's gaming platform.
TTWO's upcoming lineup features eagerly awaited games, such as WWE 2K24, Penny’s Big Breakaway and Star Wars Hunters. The appeal of iconic franchises like WWE and Star Wars is anticipated to play a crucial role in attracting customers’ interest.
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