Is another big hit around the corner for Take-Two?
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Is another big hit around the corner for Take-Two?

Here’s a game that’s conspicuous by its absence: the next instalment of Borderlands. Commonly referred to as Borderlands 3 by the press (which would make sense, unless Take-Two has a less literal title in mind), the eagerly awaited title would actually be the fourth game in the series (1 and 2, plus a prequel). Across the 3 games already published, the franchise has sold millions, and it could be the next big earner for Take-Two Interactive, which is still riding high on sales of Red Dead Redemption 2.

Take-Two’s share price has declined by 2% so far this year

graph 30 taketwo

Source: Yahoo Finance

Borderlands is a cartoony shooter set in a gritty futuristic world, and it has a devoted fan-following that sits in the millions. So devoted are these fans that they’ve been making their own trailers for what a possible fourth game would look like. But there’s good reason to suppose the real thing might not be that far away either. On a 2018 earnings call, Take-Two’s CEO Strauss Zelnick made statements about a “highly anticipated” game delay that was widely believed to be the next Borderlands.

2018 was a blockbuster year for gaming, with a number of high-profile releases. Chief amongst them was Red Dead 2. 2019 has a lot less – in terms of releases – on the cards. However, Take-Two could remain active and reap the rewards over the coming 11 months – and a Borderlands release could be just the thing to do it.

Eric Handler, an MKM Partners analyst who follows video games, wrote in a recent note: “Looking into the year, we believe: Red Dead Online is likely to emerge from its beta in late 1Q; Borderlands 3 could be announced by the end of March with a September/October planned release; and The Outer Worlds has the potential to be a multimillion-unit seller.”

Disclosure

Dominion holds Take-Two Interactive in its Global Trends Luxury Fund.


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