Take-Two digital revenue rises 128 percent

Grand Theft Auto parent publisher's digital business makes up 52 percent of all revenue; company posts overall loss of $47.1 million.

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Take-Two's digital business is booming. The company today reported earnings for the quarter ended June 30, revealing revenue from digitally delivered content grew 128 percent year-over-year and accounted for a record 52 percent of net revenue.

This was driven by offerings, including full-game downloads and add-on content, for Borderlands 2, the Grand Theft Auto franchise, NBA 2K13, and BioShock Infinite.

Overall, Take-Two net revenue was $144.3 million for the quarter, compared to $226.1 million last year. The company posted a loss of $47.1 million for the period, better than the loss of $98.8 million it took last year.

The company pointed out that the same quarter last year benefited from the release of Max Payne 3 and Spec Ops: The Line.

Take-Two's loss includes an impairment of capitalized software development cost related to a 2K title currently in development of $29.6 million, though this game was not specified. As of June 30, Take-Two had cash and cash equivalents of $646.3 million.

The biggest contributors to Take-Two's bottom line for the quarter were Borderlands 2, NBA 2K13, Grand Theft Auto IV, and BioShock Infinite. Catalog sales made up 60 percent of net revenue, led by the Borderlands franchise, the GTA franchise, and Red Dead Redemption.

"Our better-than-expected first quarter results demonstrate that the market remains strong for the highest-quality interactive entertainment," Take-Two CEO Strauss Zelnick said in a statement. "We continue to benefit from robust demand for our recent genre-leading releases, iconic catalog titles and growing portfolio of innovative digitally delivered offerings."

Take-Two is currently holding a call to discuss the results and answer analyst and media questions.

Discussion

57 comments
Shango4
Shango4

Take Two is the best publisher.

19James89
19James89

Anybody who doesn't think the future of purchasing games lies in the digital download format is being delusional. 


faizanhd
faizanhd

"company posts overall loss of $47.1 million" 

Loss ? LOSS ?!!!!?? I don't get game development.

faizanhd
faizanhd

"The biggest contributors to Take-Two's bottom line for the quarter were Borderlands 2, NBA 2K13, Grand Theft Auto IV, and BioShock Infinite."

GTA 4 is STILL selling like hot cakes. WTH ? 

olegavi323
olegavi323

Well.. publishing some of the best games of 2013 can do that to you

JBStone1981
JBStone1981

Fact: Take-Two president Chem Loafle is an international bluegrass superstar. His latest single, "Hootunket Down'b the Ampers Wew" charted in the Top Ten in eleven countries, most notably Uzbekistan. 

TrueGB
TrueGB

Not too happy about the digital revenue. That means things like Borderlands 2's legendary chest DLC and Mass Effect 3's item packs, both of which received some kind of reduced RNG to better justify their purchase, are now worth the trouble of implementing despite our complaints.

_

Stay classy, my friends

philly215
philly215

i cant wait till we phase out retail....that shit is annoying

as a PC gamer and steam user....you really have no idea how stupid it is to buy a game in store...and how more expensive

ps. i love Take Two....truly the best publisher ....gta and 2k13 are all i look forward to in a year

shark_tsuki
shark_tsuki

Good news for take-two. But still retail > digital. No matter how cheap the digital game is, it cant beat the box, fresh booklet smell and feeling of ownership of a game.

CoolCoke
CoolCoke

Take Two is to the  2010's what Capcom was to thee 1990's

hardeman
hardeman

if it wasnt for rockstar take two would of folded decades ago

harrymcdowell81
harrymcdowell81

loses 47.1 million dollars. files for a bully patent. any connection? i think so. they know where the money is at.

Car1o565
Car1o565

The reason that GTAIV is still making money digitally is that people have seen the mods that you can play with on PC. If they bring GTAV on PC, they will make an absurd amount of money.

hystavito
hystavito

"The biggest contributors to Take-Two's bottom line for the quarter were Borderlands 2, NBA 2K13, Grand Theft Auto IV, and BioShock Infinite."

I find it interesting that GTA4 is still bringing in enough money to be one of the 4 biggest contributors, right in there with new games.

Sam_021
Sam_021

If they manage to release the PC version of GTA V at the same time, they will make billions ;)

hadlee73
hadlee73

When GTA V is released it will be like performing a heist in our wallets.

CoolCamel616
CoolCamel616

Maybe I didn't understand this, but Take Two is losing money? Things have got to be pretty fucked if a powerhouse like Take Two can't turn a profit and selling 3.6 million games in a month is considered a failure (TR obvi, but there have probably been similar unpublished cases).

jwrebholz
jwrebholz

Take Two has released a lot of top-quality stuff lately.  When GTA5 hits in September, the cash is going to roll in hand over fist.

jyml8582
jyml8582

Meanwhile, the people at Square Enix continue to struggle, they seem to have forgotten how to make revenue. 

Diegoctba
Diegoctba

Rockstar, i love you, and i want you even more.

Necro_Fear89
Necro_Fear89

What was that about the poor developers losing money from used games? Shouldn't Take-Two be LOSING money instead? I thought all developers and publishers were too poor to pay their groceries!

Elyobo
Elyobo

They will get a lot of revenue with GTA V's release. Good for them. They can put it into the next Bully and Bioshock! :D

Alucard_Prime
Alucard_Prime

Well deserved success.....not only do they offer great games, their DLC offerings are awesome too. Pretty sick to see that GTA4 is still doing well......and when the GTA5 monster comes out, they won't be able to count all that money.

001011000101101
001011000101101

I guess that's what happens when you make good games. Amazing what good products and respecting your customers can do for a company, huh video game industry? 

wizardboyus
wizardboyus

@19James89 only if there will be some way to return or sell the games to other people. i'm still pissed at myself for buying assassins creed 3 on psn, i mean it was a good game and all...but i can't fucking trade it in for anything else!

Hurvl
Hurvl

@faizanhd Progress is the only way forward and whenever you make less money than last year, they consider that a failure and a loss. It's not like they had 47 million and then lost it somehow (it dropped out of someone's pants :P), they simply made less money than last year. It's never about how much money you make, but how much you made compared to last year, which I don't see as a good way of judging things.

Hurvl
Hurvl

@faizanhd Yeah, "old" games made up 60 percent of all the money they made. People cry out for more new games, but it's the old games that sell.

kimbo3000
kimbo3000

@Car1o565 They're going to release a PC version at some point. They would be stupid to completely alienate the PC market with what is going to their biggest game this generation.

KommonSinse
KommonSinse

@hadlee73 Haha, heist...sorry, that would require me not throwing my money at them for this game.

roosteraxe1
roosteraxe1

@CoolCamel616 Hitman had almost identical sales and was also considered a failure. If publishers stopped expecting every game to sell like Call of Duty and instead laid down a budget expecting 3.6 million units sold, this problem wouldn't be happening. Much like movies find a way around smaller budgets and usually turn out better for it, developers would figure something out. 3.6 mil. should never be considered a failure in sales. It should be a goal to strive torwards. If you do better, that's even more awesome! Publishers are getting far too greedy with their bottom line. Granted, everybody kniws GTA V is going to be a mega hit, therefore it's safe to assume it's going to sell more units right off the bat. Tomb Raider and Hitman are well-known franchises, but they're not mega-sellers like GTA and COD. Never have been. So it's unfair to expect them to sell like that and unwise to fund them as such. Simple economics. As for Take Two "losing" money, they haven't had any new releases, so it's kind of dumb for them to compare profits for a period that had new games out last year. Obvoiusly if you don't have a new product out, you're not going to make as much money. GTA will more than make up for the "loss".

KommonSinse
KommonSinse

@CoolCamel616 They didn't have a game release this quarter, they still have operating expenses, development and marketing of their games. Next quarter will be a different story when GTA5 releases.

d3nR
d3nR

@CoolCamel616 Not exactly... to put it simply, you have to spend money to make money. It's only the beginning of the financial year

19James89
19James89

@xsonicchaos I mean that digital downloads will phase out physical copies of games like the DVD replaced the VHS.

Hurvl
Hurvl

@kimbo3000 The petition wanting GTA V for PC is almost at 300 000 signatures. Even if it takes very little to sign such a petition, it still shows that a lot of people would be interested in it.

CoolCamel616
CoolCamel616

@KommonSinseI knew there was something I was missing. GTA has a massive budget so considering, only losing this much this quarter must mean things are pretty good.

KommonSinse
KommonSinse

@Elite_Bushido I don't think they had a game release this quarter is why, all their revenue is from games that released in previous quarters. All their operating expenses for marketing and developing the games is why they lost this money this quarter, however next quarter has GTA5 releasing. They aren't hurting.

001011000101101
001011000101101

@Elite_Bushido @001011000101101 Well, they do have quite a stuff under development at the moment. I'll admit I'm not an expert on this stuff, but I can imagine making and marketing GTA V and stuff uses up a lot of money.

arc_salvo
arc_salvo

@vivalatour @19James89 @xsonicchaos 

Well, with the next gen replacement to Blu-Ray being 300 GB discs and with more and more ISP's setting data caps on home internet service, I don't know if digital's going to take over that quickly or that much.

DVD replaced VHS but they're BOTH physical media.  And yes digital reduced CD sales but it didn't eliminate them.

Plus, a lot of people will want copies they can keep and use forever as opposed to only until the servers that support downloads shut down.

When Direct2Drive went bust, I was lucky my purchases were transfered to GameFly's PC download service or I wouldn't been royally screwed.

vivalatour
vivalatour

@19James89 @xsonicchaos  I got to believe when this happens that will be the ultimate "meltdown" thousands and thousands streaming video games through that very thin cable , it will be liked a clogged artery hahaha

Hurvl
Hurvl

@shark_tsuki @TrueGB "Makes no sense" - the majority of the comments in most articles, here and other places.

shark_tsuki
shark_tsuki

@TrueGBPC or console whatever the platform I like retail copies. Its fine if someone prefers digital version.  But bully and arrogant comment "shuttup dude like honestly...shuttup" makes no sense.

TrueGB
TrueGB

@shark_tsuki @philly215 Heck, it's mostly everyone's opinion. Digital works on PC because once you download it there will always be some modder to update the game to Win 9, 10, 100, 1000 or whatever in the future. It's riskier on consoles because it's possible to just flip a switch and turn it off, but that becomes a non-issue as long as you have the disc.

And really, it doesn't take long for games to go on sale these days.

red_city
red_city

@001011000101101 @Elite_Bushido Companies sometimes operate at a loss during development of games, because they are spending money making a game, while not selling anything in the meantime. After the game comes out, if it hits the high sales expectations they set for it, or exceeds them, that's when the company makes its profit.

Right now they posted a loss, and it's "good" because they expect GTA V to come out and reverse the loss, as well as the money they're gonna make off of 2K14 which I'm pretty sure is the 2K game they're spending 30mil on.