Take-Two Interactive raises possibility of a business beyond gaming
Take-Two Interactive is one of the world’s best-known gaming companies. Its Rockstar division is responsible for multiple smash hit franchises, including Grand Theft Auto, the fifth instalment of which became the best-selling entertainment product ever, in any medium, selling over 90 million copies and generating more than $6 billion in revenue.
More recently, Take-Two’s Rockstar was responsible for this year’s biggest video game Red Dead Redemption 2, which sold 17 million units in just 8 days – that’s more than its predecessor managed in eight years! Now, according to Strauss Zelnick, Take-Two’s CEO, the company could be looking at entering other areas of the entertainment business.
Despite incredible sales of its latest title, investors have penalised Take-Two over the last five days
Source: Yahoo Finance
Speaking on Thursday, Zelnick said: “We’ve been highly focused on our core and that’s served us so well in terms of what we bring to consumers and the value of what our security has brought to investors. That being said, can we properly think about deploying our balance sheet in addition to building our business organically, inorganically and might we touch other areas of the entertainment business in so doing? It’s a possibility.”
Zelnick didn’t elaborate what mediums that (potential) expansion might be in, but a common industry, for game-makers that branch out, is TVs and movies. These areas tend to be attractive because they’re a natural fit for the kind of story-driven creative properties that video games are in possession of. Ubisoft, for instance, has recently signed a deal with Sony Pictures to adapt Assassin’s Creed into a movie. But examples go all the way back to 1993’s Super Mario Brothers (a questionable adaption of Nintendo’s blockbuster Super Mario franchise, which tanked at the box office).
One franchise that Zelnick might be tempted to push is Red Dead Redemption, which he describes as a “global phenomenon”. He added: “We think of Westerns as uniquely Americans phenomena, but I think everyone has around the world taken on that myth as something of their own. It’s doing phenomenally well in international markets.”
For now, though, Take-Two has something else in its sights: China. Zelnick offered just a snippet of information as to how the company is driving into that important market with a new sports release. He said: “NBA 2K Online in China now has 40 million registered users. It’s the number one PC sports title, and the numbers are up about 80 percent year-over-year in the last quarter.”
Dominion holds Take-Two Interactive in its Global Trends Luxury Fund
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