|Bid||0.00 x 1300|
|Ask||0.00 x 800|
|Day's Range||110.00 - 114.58|
|52 Week Range||87.97 - 135.70|
|Beta (5Y Monthly)||0.93|
|PE Ratio (TTM)||37.76|
|Earnings Date||May 10, 2020 - May 14, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||130.78|
(Bloomberg) -- Gaming is experiencing an unprecedented boom right now, but behind the scenes, the coronavirus pandemic is hitting the $150 billion industry in subtle yet significant ways -- delaying crucial development, squeezing out smaller studios and disrupting the pipeline of new games heading into 2021.As with other sectors, Covid-19 has cleared the 2020 calendar by torpedoing marquee events like the Game Developers Conference this month and the biggest of them all, E3, in the summer. The litany of cancellations is especially painful for a business that, like the film industry, relies on flashy annual gatherings to launch big-name titles, connect publishers with creators and raise the profile of indie studios aspiring to become the next Rockstar Games.Shares in some game makers like Nintendo Co. have trended upward over the past week alongside a steep increase in playtime with government-ordered lockdowns around the world. But David Amador, who runs a one-man operation called Upfall Studios out of Lisbon, has a different perspective.“Despite the technology and communication channels at our disposal, nothing really beats the face-to-face meeting,” Amador said. “It’s an increasingly challenging market and being able to talk to customers in a casual environment and having them play our games helps a lot.”A serendipitous encounter two years ago at Gamescom, Europe’s premier gaming showcase, secured Amador a license to develop for the Nintendo Switch platform, he said. Missing events like the postponed Nordic Game Jam this year, “it’s hard to know the damage of people we won’t meet or deals not closed.” He works with freelancers when developing his games, and the trickle-down effect of missed opportunities for studios like his is a shortfall of work for designers and artists.Read more: The Virus Is Interrupting Supply Chains From Watches to Lobsters“For smaller publishers or indies like me, a chance conversation can lead to big things,” said Iain Garner, who runs Another Indie, a 12-person game publisher based in Taipei and the Chinese city of Xiamen. Like Amador, Garner was able to secure a much sought-after development license after meeting the right person at GDC, and his studio’s action game Sinner made it onto Microsoft Corp.’s Xbox Game Pass service after exhibiting at a crowded booth.He now plans to shift budget originally planned for shows to online ads and trailers. “I am not worried about us going under because of this, but I am quite sure we will take a hit overall,” he added.At a time when Valve Corp.’s Steam online gaming service is breaking records and global gaming publishers are registering increased demand due to millions of people stuck at home, the systems designed to build those companies’ future success are faltering.One game project that Upfall Studios was doing work for has been put on hold because its developers weren’t able to demo it at GDC and haven’t yet managed to pitch it remotely. Two other developers Amador has collaborated with are also struggling to secure remote calls with publishers.Before the coronavirus grew into a global pandemic, it was already interrupting the supply chain for game art and assets, as many big publishers rely on outsourcing to art studios in China, which was first to suffer the effects.Read more: Even Virtual Goods From China Are Taking a Hit From CoronavirusSuper Smash Bros. creator Masahiro Sakurai wrote in industry magazine “Famitsu” last week that the release of additional content for his blockbuster series would be delayed due to the coronavirus. Private Division, a unit of Take-Two Interactive Software Inc., said last month that its Outer Worlds action role-playing game would also be late arriving on Nintendo Co.’s Switch due to the pandemic.One major Chinese mobile game publisher had lined up a series of meetings for E3 and GDC and is now having to recreate those via much less efficient online calls, according to a person informed who asked not to be named discussing private plans. Japanese studios in particular, the person said, have insisted on meeting and signing contracts in person, pushing more projects into limbo until after virus-containment measures are relaxed.The boss of a game studio that often produces so-called AAA titles for major publishers said that the biggest business opportunities every year were on the sidelines of trade shows. Meeting dozens of prospective clients at hotels near convention centers, developers thrash out the deals that lead to game releases months down the line, said the person, asking to remain anonymous.Several of Japan’s leading game studios have tried and struggled with online tools for pitching remotely, according to multiple executives. The biggest problem, they said, is difficulty in establishing trust with new partners. This is having an impact on game platforms, which can’t expand libraries as fast as they’d like, publishers who have to fill mid- to long-term game release pipelines and indie developers who can’t secure business, they said. The executives asked not to be identified discussing non-public strategy.Complicating matters, new consoles from Microsoft and Sony Corp. slated for the end of the year mean even more development work for already hard-pressed studios, said Billy Pidgeon, analyst at Go Play Research. “EA, Activision, Ubisoft and others track games on a profit/loss basis to determine whether they will be completed on time” and they don’t hesitate to cancel ones they deem to have a low chance of profitability.For now, big publishers are assuring the public that the spread of the coronavirus disease, known as Covid-19, isn’t hampering them too badly. Ubisoft Entertainment SA said in a statement that “At the moment, the impact of COVID-19 on Ubisoft productions is minimal and has not affected our release schedule for the upcoming fiscal year.” The longer-term effects, however, are difficult to quantify.“There’s really little visibility into that right now, given we don’t know how long this will last, how effective they can be remote and how complete games are already,” said Matthew Kanterman of Bloomberg Intelligence.(Updates with developer’s comment in the seventh paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Netflix Inc. shares are up nearly 9% in Monday trading after Baird analyst William Power upgraded the stock to outperform from neutral, writing that the company was likely to be a "key beneficiary" of the COVID-19 outbreak, which has forced the cancellation of live sporting events. "Netflix's view that it continues to take share from linear TV never looked truer," Power wrote. "While not surprising given COVID-19 impacts, our survey results and other checks suggest strong current subscriber trends. Whereas we had previously been concerned with pricing power due to new entrants like Disney , Apple , etc., we believe the narrative could shift towards greater revenue leverage from subscriber upside." Power upped his price target on the stock to $415 from $350 in conjunction with the upgrade. Other stay-at-home stocks, including those of videogame publishers Activision Blizzard Inc. , Electronic Arts Inc. , and Take-Two Interactive Software Inc. as well as streaming pure-play Roku Inc. , are also up sharply in Monday's session. Netflix's stock has lost 4.7% over the past month as the S&P 500 has dropped 31%.
As governments begin to encourage social distancing to slow the spread of novel coronavirus, the videogame industry could see some near-term benefits.
Yahoo Finance’s Dan Howley joins Alexis Christoforous and Brian Sozzi to discuss why the gaming industry is getting a boost amid the coronavirus outbreak.
Coronavirus is probably the 1 concern in investors’ minds right now. It should be. On February 27th we publish an article with the title "Recession is Imminent: We Need A Travel Ban NOW". We predicted that a US recession is imminent and US stocks will go down by at least 20% in the next 3-6 […]
Moody's Investors Service, ("Moody's") says Take-Two Interactive Software's announcement of its 2K partnership with the National Football League (NFL) is credit negative for Electronic Arts, Inc. ("EA") (Baa1, positive). The announcement of the multi-year partnership marks the revival of football games to the list of sports titles under Take-Two's 2K franchise, which could create competitive pressures for EA's successful EA Sports' Madden NFL franchise.
Google is recommending most of its 100,000 workers in North America stay home as tech coronavirus spreads. Yahoo Finance's Alexis Christoforous and Brian Sozzi speak with Tech Editor Dan Howley about the implications.
(Bloomberg) -- Dan Houser has spent nearly a year on what his company, Rockstar Games, describes as an “extended break.” It’s apparently the longest period Houser has been away since starting the video game label with his brother in 1998 and co-creating two of the industry’s most valuable—and controversial—franchises, Grand Theft Auto and Red Dead Redemption. Some of his colleagues at Rockstar and parent company Take-Two Interactive Software Inc. have kept up with his family’s adventures through updates to his wife’s Instagram: a visit to the Roman Colosseum at dawn, green drinks on the beach in Turks & Caicos and a horse-drawn carriage ride through the snow-thick landscape of Deer Valley, Utah.The sabbatical officially comes to an end Wednesday, when Rockstar will part ways with Houser, the co-founder, vice president of creative and the primary plot designer for its games. During his career at Rockstar, Houser became to gaming what Martin Scorsese is to film. Grand Theft Auto V, his biggest hit, brought in more revenue than the last 10 James Bond films combined and is still a moneymaker almost seven years later thanks in part to online sales. Houser’s final game, Red Dead Redemption 2, generated $725 million during its opening weekend in 2018, exceeding the debut of the Avengers movie that came out that year.Dan Houser’s storytelling craft was complemented by the technical and business acumen of his brother, Sam. With Rockstar, the Houser brothers set out to make games that appeal to adults, by adapting aspects of their favorite films and pop culture for an interactive medium. “Their mission was to completely transform video games and make them cool, to make games that could be discussed in the same breath as Goodfellas and The Sopranos,” said David Kushner, author of the 2012 book Jacked: The Outlaw Story of Grand Theft Auto. And they succeeded. A byproduct of their accomplishment was a corporate culture described in news reports and court records as all-consuming and destructive. Rockstar has long been a symbol of game development’s dark side, where employees are expected to work nights and weekends without reprieve in the final months or year before release. Houser told New York magazine in 2018 that he and a few others were working 100-hour weeks in the final stretch on Red Dead Redemption 2. The video game website Kotaku reported that long shifts were mandatory and took a significant toll on workers’ mental and physical health.This culture of crunch that Houser helped promote may have ultimately defeated him, according to several analysts and journalists who have followed the brothers’ careers. In multiple profiles over the years, there’s a recurring description of the enthusiastic, Coca-Cola-addicted game maker: “He also looks tired.” Neither Houser nor his company have explained the reasons for his extended time off or his departure. But Houser, 46, perhaps couldn’t face the prospect of another development cycle. “It’s an industry which has always been built on this idea of crunch time,” said Kushner. “That’s a larger challenge that the industry as a whole has to reckon with.”Houser declined to comment through a spokesman, as did Take-Two. His brother will remain president of Rockstar, and the company has said it doesn’t expect additional defections. In a securities filing announcing Dan Houser’s departure last month, Take-Two wrote: “We are extremely grateful for his contributions. Rockstar Games has built some of the most critically acclaimed and commercially successful game worlds, a global community of passionate fans and an incredibly talented team, which remains focused on current and future projects.”The Housers grew up in South West London, where their father was a lawyer and worked for a famous jazz club. Their mother, Geraldine Moffat, is a former actress who appeared alongside Michael Caine in the 1971 crime drama Get Carter. Sam became an Americanophile obsessed with hip-hop music. Dan went to Oxford University and learned to appreciate a good story. He wrote much of the expletive-laced dialogue found throughout their games. “His role was rolling up his sleeves and bringing these worlds to life,” Kushner said.Part of Houser’s management style was making coders and designers feel like rock stars—true to the publisher’s name—and celebrating their individual contributions, said David Cole, head of digital entertainment research firm DFC Intelligence. Houser frequently pushed back against the parent company’s demands for tighter deadlines and set extremely high bars for quality, said Cole, who has met with Houser in the past. “He created this vision that others can follow,” Cole said.In 2008, Rockstar released Grand Theft Auto IV, a gritty, modern crime drama that lets players roam freely through a funhouse-mirror version of New York City. “The challenge is to tone down the real world because the real world is so ridiculous,” Houser said in an interview with Businessweek to promote the game’s release. He then sidestepped a straightforward question about whether he considered the product to be a success. He laughed and said, “We’ve created a tight, beautiful piece of interactive experience.” According to the review aggregator Metacritic, Grand Theft Auto IV is tied for the second-best video game of all time.The founders’ high standards and grueling pace prompted pushback from their employees. During development of Grand Theft Auto IV, Rockstar workers in San Diego sued for unpaid overtime. In 2009, Take-Two settled with 100 people in the class-action suit for $2.75 million and denied the allegations. But accusations of an untenable work environment persisted. A letter purportedly written by spouses of Rockstar employees was published by the website Gamasutra in 2010 and went viral. It said workers were driven to depression and physical illness from the extended hours and canceled vacations. In a statement at the time, Rockstar called the authors’ authenticity into question and said the company valued and supported employees.By 2012, Houser was beginning to express dread about undertaking a new game. “We don’t start until the very end of a project,” Houser told the Guardian a few months before completing work on Grand Theft Auto V. “At the moment, the thought of even doing another Grand Theft Auto is so appalling—we've got so much work left to do to finish this one. It’s overwhelming!”But each new game brought mountains of wealth. Houser spent $12.5 million in 2012 on a townhouse in Brooklyn that once belonged to Truman Capote. The Housers’ royalties from Grand Theft Auto V during a period from late 2014 to early 2015 were estimated to be at least $93 million, and perhaps much more, according to a lawsuit from Leslie Benzies, a former Rockstar executive who claimed he had been improperly cut out of the royalty pool. The lawsuit was settled last year, and the terms weren’t disclosed. Take-Two has said the Housers don’t receive the majority of royalties and that many employees share in the profits.For his last completed project, Houser was holed up in an office wallpapered with Post-it Notes containing the names of people, places and story elements, according to the New York magazine article. At one point, they completely obscured the windows. The resulting game, Red Dead Redemption 2, is a Western brought to life. It puts players in the boots of an outlaw who starts gunfights and performs locomotive heists on horseback as the world’s frontiersmen go about their unique daily routines. “If we’d known how much work it was going to be, then maybe we’d have backed off,” Houser told GQ in 2018, “but once we committed, we were like, ‘We’ve got to make this work.’” Game critics rate it among the 10 best video games, along with the last two Grand Theft Autos.Before Red Dead Redemption 2’s release, Houser told GQ he was thankful to be working on a period piece rather than another Grand Theft Auto set in today’s divisive social and political climate. “It’s really unclear what we would even do with it, let alone how upset people would get with whatever we did,” he said. “Some of the stuff you see is straightforwardly beyond satire. It would be out of date within two minutes. Everything is changing so fast.”To contact the author of this story: Olga Kharif in Portland at firstname.lastname@example.orgTo contact the editor responsible for this story: Mark Milian at email@example.com, Robin AjelloFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Video game publisher Take-Two Interactive Software on Tuesday announced a multiyear partnership with the National Football League encompassing multiple future video games, starting in 2021.
Take-Two Interactive Software (NASDAQ: TTWO) was gaining yardage Tuesday after news it has a new deal with the National Football League to create "non-simulation" football video games.With a partnership for "non-simulation" games, the league is able to avoid Take-Two creating games that could be seen as directly competing with the popular "Madden" NFL games from Electronic Arts Inc. (NASDAQ: EA), which remains the exclusive publisher of NFL "simulation games."The non-simulation description means that it is likely to be an arcadelike game (think NFL Blitz) vs EA's more realistic game, Madden," Stephens analyst Jeff Cohen said in a note.Little Impact Expected Cohen said Take-Two investors will be pleased at the announcement of a new game, but that the impact from the title will likely be small, in the range of 2 million to 3 million units. Cohen has an Equal-Weight rating and $110 target price on Take-Two.Cohen said EA investors should pay attention, however, noting that anything close to football could be "encroaching further onto EA's sports golden goose," though he noted Take-Two's effort likely won't be competitive with Madden. Cohen has a Buy rating and $120 price target on EA.Price Action Take-Two shares were gaining on the news Tuesday, up more than 2% at publication time to $116.32. EA shares were also up slightly, trading at $101.18.Related Links:'Call Of Duty' Launches Free-To-Play Battle Royale Mode 'Warzone' TodayCramer Praises Take-Two's Transparency, Chats With CEOLatest Ratings for TTWO DateFirmActionFromTo Mar 2020Exane BNP ParibasUpgradesUnderperformNeutral Mar 2020Stifel NicolausMaintainsBuy Feb 2020Morgan StanleyMaintainsOverweight View More Analyst Ratings for TTWO View the Latest Analyst RatingsSee more from Benzinga * Take-Two's Murky Pipeline Leads To Caution On Stock Price Outlook * 7 Video Game, Esports Themes Investors Should Watch In 2020 * MKM Downgrades Take-Two On Valuation(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Take-Two Interactive’s 2K and the National Football League announced a new multiyear partnership on Tuesday to make new “non-simulation” videogames.
Take-Two Interactive Software Inc. announced Tuesday that it had struck a partnership with the National Football League to make "non-simulation" football videogames. The projects are still in development and will begin launching in calendar 2021. "We're thrilled to be back in business with the NFL in a partnership that will span multiple video games centered on fun, approachable and social experiences," David Ismailer, the president of Take-Two's 2K publisher, said in a release. Shares are up 4.1% in premarket trading Tuesday. Electronic Arts Inc. , which makes the popular "Madden" NFL games, issued a statement Tuesday saying that it is "the exclusive publisher of NFL simulation games, and our partnership with the NFL and NFLPA remains unchanged," referring to the NFL Players Association. "Our agreements have always allowed for non-exclusive development of non-simulation games on various platforms," the statement continued. EA shares are up 2.6% in premarket trading. EA shares have lost 7.2% over the past month, while Take-Two shares have added 2.6%. The S&P 500 is down 18.1% over a one-month span.
The National Football League (NFL) and 2K today announced a multi-year partnership encompassing multiple future video games. The partnership marks the return of football-themed games to 2K’s stable of notable sports titles and original IP, as well as an expansion of video game properties for the NFL. Financial terms were not disclosed.
2K today announced that Make-A-Wish® kid, William Floyd, a 15-year-old from Georgia with a rare genetic disorder causing severe muscle weakness and heart problems, is the first non-NBA athlete in the popular basketball video game series’ history to be authentically scanned and earn a spot on an NBA® 2K playable roster. Available for download beginning today on the Xbox One family of devices, including Xbox One X, as well as PlayStation®4 system, Windows PC and Nintendo Switch™, William’s NBA® 2K20 player model may be found within Quick Game mode as a free agent for players to include on their teams of choice, as well as through new MyCAREER and MyLEAGUE rosters.
The Zacks Analyst Blog Highlights: Microsoft, Electronic Arts, Activision Blizzard, Take-Two Interactive Software and Nintendo
Videogame companies around the world, including Activision Blizzard, Take-Two Interactive Software, and Electronic Arts, are grappling with safety precautions surrounding a handful of events and conventions.
The global online gaming market size is poised to reach $79 billion by 2025, supported by growing popularity among millennials and Gen Z globally.
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Take-Two Interactive...
Take-Two's fiscal third quarter report includes a lot of good news as its results fell inline with expectations that were twice raised since the start of the fiscal year, company CEO Strauss Zelnick told Cramer in an interview. First, investors have gotten used to "only great news" coming out of the "NBA" franchise but management said it doesn't expect the game to achieve any new records this year, but will still be very profitable for the company. The upcoming next-generation video game console launch in late 2020 represents a "big leap forward" based on multiple technological advances, he said.
The technical signals for the video game maker suggest its shares may see more price weakness in the weeks and months ahead.
Benzinga has examined the prospects for many investor favorite stocks over the past week. Bearish calls included media and electric vehicle leaders. As usual, Benzinga continues to examine the prospects for many of the stocks most popular with investors.