Take-Two posts full-year profit, Rockstar contracts renewed

Publisher rides 8.5 million-unit selling Red Dead Redemption to $48 million profit on revenue up 49% to $1.14 billion; Spec Ops pushed to mid-2012.

Take-Two has already reported its 12-month earnings once in the past few months. However, given that it adjusted its fiscal year-end to the more traditional March window, it has now done so for a second time. As expected, the results remain incredibly positive, thanks in large part to the strong performance of Rockstar Games' Red Dead Redemption.

Spec Ops will now toe the line in mid-2012.

Reporting on its fiscal year-end earnings today, Take-Two said net revenue came in at $1.14 billion, a figure 49 percent higher than the $763 million it brought in over the same period last year. As for that promised profit, the publisher posted net income of $48.46 million during the 12-month period, up from a $123 million loss last year.

Take-Two subsidiary Rockstar Games provided the publisher's primary revenue and profit growth during the year with Red Dead Redemption, which shipped in May 2010. The game has now sold in more than 8.5 million units.

The publisher did not provide a sales update on Rockstar's latest top-rated title, L.A. Noire, but it did say that Grand Theft Auto IV: Complete and Red Dead Redemption: Undead Nightmare also led sales for the publisher.

Given Rockstar's strong record, Take-Two also touted the fact that it has extended its employment contract with the publishing label's creative team: Sam Houser, Dan Houser, and Leslie Benzies. Take-Two said it renewed these employees' contracts on a long-term basis with largely similar economic terms.

Beyond Rockstar's lineup, Take-Two also saw performance from its NBA basketball franchise. Benefiting from EA Sports' decision to cancel NBA Elite 11, NBA 2K11 has now sold in more than 5 million units. Other top performers included Top Spin 4, Major League Baseball 2K11, Civilization V, and Borderlands.

With speculation rife that Take-Two is ripe for acquisition, the publisher said today that it has entered into a new management agreement with ZelnickMedia, with Strauss Zelnick continuing to serve as chairman and CEO of both companies. The new management agreement, which remains subject to shareholder approval, also sees Karl Slatoff continuing as Take-Two's chief operating officer.

As part of its earnings report, Take-Two also updated its release schedule for the coming year. The publisher now expects to ship Yager's tactical shooter Spec Ops: The Line during the first half of its 2013 fiscal year, which equates to an April 1, 2012 to September 30, 2012 window.

Take-Two said it expects revenues to come in at $1 billion to $1.1 billion for its in-progress fiscal year ending March 31, 2012.

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85 comments
archelius
archelius

RED DEAD REDEMPTION FOR PC??????????????????????????????PLEASE PLEASE I AM DYING TO PLAY AN AWESOME WESTERN LIKE RDR....ILL BUY IT IN A HEARTBEAT IF IT LANDS IN STORES!

RealFabioSooner
RealFabioSooner

@edmond_villamor I get what you're saying, but the comparison isn't accurate. You're pairing a developer (Rockstar) with a publisher (EA). You'd either have to compare Rockstar with, say, EA Sports (which has separate studios, much like Rockstar) or Take-Two to EA as a whole. In the latter case, Take-Two does launch more than one game a year, as this article itself shows. I guess the reality is way simpler than what you're aiming at: Rockstar is a damn fine developer, as all the others under Take-Two's management. Meanwhile, EA works with partners and studios that are great (DICE, EA Sports, Criterion and the very BioWare you mention) and others which are less so (Visceral Games, which gave us Dead Space BUT also Dante's Inferno). So it isn't really a matter of Rockstar concentrating on one game a year - Visceral Games does the same, for example - but of Take-Two's management hitting the bullseye when it comes to finding good studios and partners.

jerusaelem
jerusaelem

It's almost as if putting out BETTER sequels to already beloved franchises is...profitable. Someone should email this article to the folks over at Bioware what developed DA2 and inform them of this. Wouldn't hurt to forward it over to Lionhead Studios while they're at it as well.

edmond_villamor
edmond_villamor

Companies who make more than one solid game a year usually sees their games degrade in qualtiy. (cough.....EA......cough.......) Rockstar releases one solid game per year and rake all the benefits the next year. that's a very good business decision and it also would not stretch their resources too thin. I would assume the next move is to release RDR in PC (hopefully) for 2012 or 2013 so they can again make money from games they don;t have to develop. I admire Rockstar games and they are among the best up there with Bioware and Blizzard.

brain56
brain56

@solidmaster I disagree on you with that for the reason that there will be too much games! For one, that would be detrimental to the lifespan of a game, one would be distracted from playing further into the game simply because there's another game to play. And another thing, that would mean more games to buy! Not enough cash, stranger!

santinegrete
santinegrete

Sam Houser? OHMYGOD please do another Manhunt game!!!

solidmaster
solidmaster

Rockstar should release games more often, one game every 12 months is way too little. I mean come on they have three dedicated teams for Noir, RDR and GTA. I'm sure they can produce a game every 9 months if they work harder. This gives each team almost 2 years to develop a game which is reasonably enough time.

plaintomato
plaintomato

RDR wasn't played by 3x as many people as GTAIV. I love L.A. Noire, and I hope it sells through the roof. It's a bit slow but that's part of the intended vibe I imagine. R* has become the go-to dev for new experiences. If I were a polygamist I'd marry R* and Valve and keep Crytek as my backstreet girl. Everyone else who makes great games also puts their name on crap, I like the devs you can count on every time. TakeTwo is a lucky boy.

lmaocarrots
lmaocarrots

Next Gen Rockstar Games GTA IV - Masterpiece, with an amazing, yet ignored story. RDR - Also a Masterpiece, great story, but sadly played by about 3X as many people as GTA IV's even though GTA IV's was slightly better. LA Noire - Fantastic game, lacks great story, but has very innovative gameplay. Rushed ending. (I am aware this post is slightly random, just seeing who agrees)

spoonybard-hahs
spoonybard-hahs

Sweet. Positive news about developer employment for a change.

warhawk-geeby
warhawk-geeby

Is this Spec Ops from the same makers as Spec Ops:Ranger Elite for the PS1? Or is it completely unrelated? Any feedback would be greatly appreciated :) Loved the old game.

ohjtbehaaave
ohjtbehaaave

Spec Ops looks good. Hopefully they just delayed it like they did with L.A Noire when it was in development to give the game the proper time it deserves. I'd rather see a game delayed any time than seeing them rushed to market.

Laiska_pummi
Laiska_pummi

@Phil-teh-Pirate Yeah. I never thought about that. London would be perfect. I really hope that they contiune the Noire series.

Phil-teh-Pirate
Phil-teh-Pirate

@Laiska_pummi London Noire would be better. Too many games based in America right now.

emperiox
emperiox

Win! Shame it got delayed ;'(

hamper17
hamper17

They are quite possibly the best development company out there so these figures aren't too surprising.

docwoo
docwoo

Good job Take-Two! As long as you keep turning out great games, I have no problem doing my part to drive your profits upward by giving you my hard-earned money!

GamerLegend10
GamerLegend10

spec ops looks good, and hopefully a GTA in the next few years :D though i have yet to pick up L.A.Noire

Icehearted
Icehearted

The really great thing about this is that they really were betting a lot on RDR. They saw it both as a gamble and as the last hope for Rockstar San Diego (if memory serves me) and not only did their San Diego Team show their chops, they freakin' blew so many of us away! I hope the other companies are paying attention here; quality breeds success. Give us great games, we'll gladly shell out. Dump a cash-grab sequel a year on us (like EA) and watch those profits tank.

deeshht
deeshht

U have good games but spec ops shound b out already. just like pray2 nextgen is nextyear

ChiefFreeman
ChiefFreeman

[This message was deleted at the request of the original poster]

HT89488
HT89488

Rockstar has no definition to how awesome they are.

phillkillv2
phillkillv2

Rockstar. I congratulate you. Best games out there.

Get_Shorty
Get_Shorty

So when are they coming out with a Special Edition of Red Dead Redemption so I can finally get it. I missed it last year.

Hvac0120
Hvac0120

I'm curious if Take-Two will actually be purchased or if it will remain independent. I like the risks T2 has taken over the past decade and would like to continue to see those risks being taken. I don't think we'd see as much innovation if they were to be bought out by an 'evil' corporation.

Hvac0120
Hvac0120

@epic40k It's not hard to get a game up and running on a PC, but it is hard to deploy a game on PC. Yes; piracy is a concern, but not so much as the near-unlimited number of possible computer configurations you have to target. With consoles, the most important specs (CPU, GPU, RAM, Motherboard Configuration) are set in stone and there are a limited number of configurations that the manufacturer releases for a developer to worry about. This makes it much easier to test and deploy.

mcr_182
mcr_182

take two has some of the best franchises

epic40k
epic40k

I now have no love rockstar and take-two. They would have made alot more if they ported red dead redemption to pc. Now they have done the same for L.A. Noire. They said it's because it's hard to port a 360 or ps 3 game to pc, which absolute horsecrap as they are developed on pc. Why don't they just come out and say that all pc gamers are thieves... rant off

Laiska_pummi
Laiska_pummi

@organbank Red Dead is already a franchise. There's a game for PS2 called Red Dead Revolver and Red Dead Redemption is a kind of sequel to it. L.A. Noire has a lot of potential to be a franchise. There could be Chicago Noire or New York Noire. That would be awesome.

topeira
topeira

@ demonic_85 - i think the only thing they promised up, PC gamers, is that RDR WON'T be coming to the PC. and they kept their promise, sadly.

pokecharm
pokecharm

still no word on the Game of the Year edition of Red Dead? wonder if they'll even do that...

guildclaws
guildclaws

They should released RDR and L.A Noire on PC :D

Phil-teh-Pirate
Phil-teh-Pirate

Everyone at Rockstar is probably the best thing to ever happen to Take 2. Why would they drop them? As a development company they haven't made a bad game since their Game Boy Colour days.

slainta
slainta

Even I would be able to make profits with games like GTA, RDR and L.A. Noire. I would be surprised of the contrary, as it was the case when Take-Two was nearly bought by EA.

firehawk998
firehawk998

Give us awesome games like RDR and you will get more sales.

couly
couly

Want another million? release it on PC, even a bad port, we'll fix it up ourselves like we did with GTA4.

Emma_R
Emma_R

Stealing is disgusting, really.

nyran125
nyran125

its jsut insane how much money successful game companies make these days. I find it interesting that its only the LARGE companies that complain abotu the piracy, while The Witcher CDProject guys love it when they make 1.5 million units sold and it doesnt seem to break the bank. Like when the large companies sell 1 million copies its all , OMG the world is ending, BLAME piracy and give all gamers guilt trips into buyign everything that comes out. Its disgusting really.

TheHappyCamper
TheHappyCamper

That sucks about Spec Ops, I liked the little I saw of it. Oh well, I suppose there are a ton of great games coming out to tide me over till then. Provided of course that they too do not get delayed.

organbank
organbank

I'm a little confused. If RDR made them so much money why is there talk of franchising La Noir and not RDR? I didn't get La Noir and I won't be getting any of its franchised titles, so why no love for RDR? I would pre-order RDR franchise title for both PS3/Xbox in an instant. What gives? From the sounds of it R* need to expand ASAP.

drknessfeeds
drknessfeeds

I use to envy all the games that were on a the compter than my comp just could nopt handle...consoles have gottan closer to then I dont understand why they dont make more games truely multiplatform including the comp. Mainly when they throw in its coming out on the WII also, gimma a break. Cater to your adience and you will be repaid with money.

demonic_85
demonic_85

Hey Rockstar, where is the Red Dead Redemption for PC you promised??!!