Take-Two exceeds second-quarter guidance as revenues grow 54% to $268 million, profit nearly $17 million; fiscal-year guidance raised; Max Payne 3 delayed.
Rockstar Games scored substantial critical success with its latest open-world epic, Red Dead Redemption, which launched for the Xbox 360 and PlayStation 3 last month. Now, the game can make claim to commercial success as well, as Rockstar parent company Take-Two Interactive announced today as part of its strong second-quarter earnings report that the game has now sold more than 5 million units and is set to turn a profit in its first quarter on sale.
However, the game's quintuple-platinum milestone came outside the publisher's February-April quarter; thus, its sales results weren't factored into Take-Two's earning report. Still, the publisher had a hot quarter. During the period, sales rose to $268 million, a 54 percent increase over the $174.3 million Take-Two brought in during the same period a year ago. Take-Two also reversed last year's $10.4 million loss, posting a $16.9 million profit during the quarter.
Top new releases for the publisher during the period included BioShock 2, Grand Theft Auto: Episodes from Liberty City on the PlayStation 3 and PC, and Major League Baseball 2K10. As part of a post-earnings conference call, president and CEO Ben Feder also noted that GTA: Episodes from Liberty City has been an "extremely profitable" foray into episodic content.
The publisher also saw continued strong sales from NBA 2K10, which launched in October 2009, and Rockstar's mega blockbuster Grand Theft Auto IV. NBA 2K10 has now shipped 3 million units. As for GTAIV, Take-Two said the open-world gangster adventure has now sold more than 17 million units on the Xbox 360, PS3, and PC since its record-setting April 2008 launch.
Having beaten expectations during its first, and now second, fiscal quarters, the publisher also said today that it would be raising its full-year guidance. Take-Two now expects to bring in $880 million to $980 million for its fiscal year ending October 31, 2010.
That upward revision comes despite a high-profile delay. The publisher said today that it would be once again delaying Rockstar Vancouver's Max Payne 3, which had previously been expected to ship later this year. Take-Two now expects the game to launch outside of its in-progress fiscal year.
In January, online reports indicated that Max Payne 3 development had been plagued by direction changes and that Rockstar Vancouver was suffering through hostile working conditions. When pressed by an analyst for confirmation that the game would be released in Take-Two's upcoming fiscal year (which runs November 1, 2010 to October 31, 2011), an executive only said a release date had not been announced for the title.
However, the publisher did reaffirm the releases of L.A. Noire, Mafia II, and Sid Meier's Civilization V, all of which are due during the August-October quarter.
Feder also briefly addressed Take-Two's plans for next week's Electronic Entertainment Expo. Notably, the executive said that Rockstar will not be showing any titles at this year's E3. However, numerous titles from its 2K Play label, including 2K Marin's recently announced X-COM reimagining, will be on hand in some form.
I would love to be a fly on the wall at Rockstar! Agent, LA Noire, Max Payne 3, and the next GTA. Those guys are so secretive. I love it and hate it, because it sucks to be in the dark for so long, but it's pretty cool when I log into GS one day and I'll get surprised with a crap load of some new footage or details from R*. I just wish they wouldn't take so long. What's going on with those games?!
@dc337 FFVVCKKK U!! I pay every penny, for my collection, don't insult us, there are many peoples who do piracy (even on 360) but many others do not (like me)!! most of PC user purchasing through Steam or D2D. where their digital distribution policies, never took out about sales figures!! once again FFVVCCKK U!! lamey! you're so cheap! with your cheap system!!
@im-a-roustabout Turn the auto aim off.....but you knew that didn't you. @DannyC_pt It is easy to turn the auto aim and turn up the difficulty if you are finding it too easy.
RDR is worth every penny. GTA is great, but RDR makes you feel like you're living in the Wild West. I never got that immersion vibe from GTA.
Gta 4 was a really good game, back in 2008 my pc couldnt handle the game, but i installed it anyway, it took half a day, then it worked, it lagged like hell, but it was bearable. I finished the game in a month, and i enjoyed every second of it.
@awesome how can you get a smooth running RDR on pc when it isn't available for the pc? It runs just fine on the 360 anyways, maybe you should quit crying about the lack of pc port and go buy a $200 arcade.
@Spybreak Actually Red Dead Redemption is riddled with stereotypes,ex/a drunk Irishman, a corrupt politician, and a self righteous federal agent. Stereotypes aside thought it really is a great game.
F*ck..As good as this may sound, this is very bad for PC gamers... They notice that when they release to consoles only, they make a much better buck... I can see why, but It's so unfair..
"As for GTAIV, Take-Two said the open-world gangster adventure has now sold more than 17 million units on the Xbox 360, PS3, and PC since its record-setting April 2009 launch". Please get your facts straight! This game was launched on 2008!.
The first 2 Max Payne games were developed by Remedy Entertainment and published by Rockstar. Remedy were busy making Alan Wake so Rockstar Vancouver are developing Max Payne 3. Hope it's good whenever it finally does make it out.
max payne was a rockstar game?? i played both max payne games 1 and 2 and didnt know that. max payne 3 will be awesome considering the amount of detail they put in thier last game.
Glad the game's getting the praise it deserves. Attention to detail, great voice acting and iconic characters that step away from stereotypes is why this game is great. Oh and Deadeye is the new bullet time.
Even though the Max Payne 3 story is a little messy, I really want this f*cking game!! Come on!! Another delay!?
i thought red dead redemption would suck but i succumbed to societies beliefs for once and bought it and its slow at first but its an awesome game.
MGS4 is for a specific audience. Believe it or not, there are millions of gamers that don't visit these websites ever and just buy sport games and such, opposite to me though, MGS4 is my all-time favorite, I cried at the end and wanted moar.
Wow, I kind of can't believe a western game has actually hit an audience for once. Hope it keeps going. :)
At least with the PC version you are able to get a SMOOTH running RDR for the peeps who have decent gaming rig- seriously some people dont mind paying over the odds for thier gaming hobby to get the best they can afford... I see people spending tons of money on other hobbies (eg golf, fishing..etc) why not gamers?
Congrats to TTWO. You surprised the street with better than expected revenue, and a better than expected picture for the year. With RDR, you now have a second super-premium IP in your house. And yet the next day, your stock is down 3% in the midst of a widespread rally across all stocks. Wall Street makes no sense.
@ im-a-roustabout "I'm not trying to say 17 million isn't much, but I just needed to point out how amazing it must be to have a company with a few offices around the globe and spend millions upon millions for just a 17 million return." Uh, that's 17 million UNITS (games sold), not 17 million dollars.
@Grandpa1676 Because most pc gamers don't pay for their games. The pc community needs to start condemning piracy instead of making excuses for it.
@robram9 I guess they're just people who already use their computers all the time, and dont want to have to have different computers for different reasons.. or rich and want the best possible graphics out of every game... or find it easiest to pirate on the computer.. I could find several reasons... O.o and I don't even play any games on my computer.. --- and although personally i think it's over-rated, GTAIV is a pretty good game, and although i have not been able to play it yet I'm sure that RDR is even better. Other rockstar games are also usually a blast, midnight club la was fantastic in my eyes - so i think that rockstar has definately earned these earnings.
Is this amount games sold to retailers or retailers selling the game to the general public? The numbers on VGChartz for RDR only say 2.15 million for both versions world wide (although the sales count is lagging by a week). So either Take Two is greatly exaggerting, VGChartz is way off the mark, or this is in reality the amount of games that Take Two SHIPPED to retailers and not the amount of games sold to the general public. If it is the amount of games shipped to retailers rather than retailers selling the game to the general public then Take Two is being misleading. Nontheless RDR is an excellent game, more interesting than GTA IV in my opinion.
Rockstar makes great games, they deserve the money. Question to "im-a-roustabout", is it possible to turn of the auto aim feature? (cause I'll be buying RDR only by the end of the month, lol)
@robram9 why would we spend loads of money, when a ps3/xbox 360 is cheaper than a pc thats just as good for games, a pc thats as good as a console is like £1000
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