Take-Two Interactive looks to a quirky property for acquisition
Take-Two interactive is best known for its blockbuster video games franchises. These are big, powerful, titles with massive fan bases. In February, it was announced that the fifth iteration of Grand Theft Auto, for example, had sold 75 million units in 3 and a half years. When you add in online play, downloadable content, and the possibility of licensed creative works, that is a significant product offering. So it’s a little strange that the company’s latest acquisition is nothing like its current stable of bestsellers.
Take-Two Interactive’s share price is up by a shocking 61%, year-to-date
SOURCE: Yahoo Finance
The company announced at the beginning of June that it had acquired an offbeat spacefaring game, Kerbal Space Program, from privately held developer Squad. More cerebral and less violent than some of the company’s other properties – like the upcoming Red Dead Redemption 2, which has just had its release date pushed back – the game sees players designing spacecraft to explore a vast cosmos.
Take-Two say that Kerbal has sold 2 million units in slightly over 2 years, so it’s nowhere near the same league as some of the company’s other titles when it comes to sales and profitability. Despite that, it plans to release a sequel soon. Whether these games can bring a new audience into the Take-Two fold remains to be seen, but it is encouraging to see that Take-Two are willing to use acquisitions and diversification of titles to reach more gamers in more niches.
Dominion holds Take-Two Interactive in its Global Trends Ecommerce Fund.
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