Take-Two has been releasing high quality games for years. Their success rate, especially when coupled with studios like Rockstar Games, is nearly second to none. 2010 was a massive year for both the aforementioned publisher and developer with the release of the massively popular western hit Red Dead Redemption.
The start of this year, however, has not been nearly as successful. Rockstar and Team Bondi got together to put out the exceptional L.A. Noire, however, sales for that crime buster didn’t rate as well as sales for Red Dead. That bit was to be expected, and, according to information relayed through a fiscal report to investors, it was expected by Take-Two.
According to the report, “for the first quarter ended June 30, 2011, net revenue was $334.4 million, as compared to $375.4 million for the year-ago period.” A nice chunk of that revenue was rounded up by digital offerings. From the same report:
“Digitally delivered content accounted for $24.6 million of net revenue, up 49% year-over-year, driven by offerings for Red Dead Redemption, Borderlands, theGrand Theft Auto franchise, Duke Nukem Forever, the Sid Meier’s Civilization franchise, and L.A. Noire.”
It would have been foolish to expect L.A. Noire to hoist revenue up as high as Red Dead Redemption did the year before. Take-Two took to (see what I did there) calming investors by insisting that there are plenty of strong titles on the horizon capable of pulling in great chunks of revenue for the company.
Strauss Zelnick, Chairman and CEO of Take-Two, explains the company’s position:
“Looking ahead to fiscal year 2013, we have already announced three exciting new releases: BioShock Infinite, Spec Ops: The Line, and Borderlands 2, and we have a very strong pipeline of yet-to-be announced titles in development. As a result, we continue to expect to achieve substantial revenue and earnings growth, including Non-GAAP net income in excess of $2.00 per share.”
I’ll be there on day one for each of those games, how about you?