Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Take-Two Interactive’s (TTWO - Snapshot Report) recently released game Grand Theft Auto V grossed $800.0 million worldwide in first-day sales. More importantly, Grand Theft Auto V broke the $500.0 million first day sales record set by Activision’s (ATVI - Snapshot Report) Call of Duty: Black Ops 2 in 2012.

Developed by Rockstar North, Take-Two launched the game on Sep 17 for Sony’s (SNE - Snapshot Report) PlayStation 3 and Microsoft’s (MSFT - Analyst Report) Xbox 360. Take-Two sold the new game title through 8,300 stores in North America.

Reportedly, Take-Two sold approximately 13 to 14 million units on the very first day. Grand Theft Auto IV had sold a total of 13 million units over a one-year period. Take-Two is set to launch the new game in Japan and Brazil, which will further boost top-line growth going forward.

Grand Theft Auto V has received rave reviews from critics and game analysts. The game received “M” rating from ESRB, which means mature. The new game also includes access to Grand Theft Auto Online, which will be launched on Oct 1, 2013.

The success of Grand Theft Auto V brings new hope for the beleaguered video game industry. Retail sales have been on the decline for the last couple of years due to significant competition from free-to-play games and digital distribution.

Video game retail sales in August increased a modest 1.0% year-over-year after a long gap. Although software increased 21.0% year over year, hardware sales plunged 40.0% due to lower spending on old consoles.

Both Microsoft and Sony are set to launch their new consoles late this year. The successful launch of Grand Theft Auto V suggests that there is pent-up demand for pure console games. We believe that the upcoming release of big console titles such as Battlefield 4 and Call of Duty: Ghosts will benefit from this demand in the holiday season.

We believe that the strong unit sales of Grand Theft Auto V will significantly boost Take-Two’s top-line growth in 2013. Moreover, it will improve its competitive position against the likes of EA and Activision going forward.

Currently, Take-Two has Zacks Rank #1 (Strong Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GRP IN DXYN 15.84 +7.90%
BOFI HLDG IN BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%