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Take-Two's (TTWO) Rockstar Games Buys Crackdown 2 Developer
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Take-Two Interactive's (TTWO - Free Report) key Rockstar Games division has purchased a video game developer, Ruffian Games, and rebranded it as Rockstar Dundee, per TheGamer report. The name is derived from Dundee, the Scottish city where the unit is based.
The studio’s past work includes games such as Halo: The Master Chief Collection and Crackdown 2.
Companies House in the United Kingdom has two relevant listings relating to the acquisition. The first, dated Oct 1, is a notice that Rockstar’s parent company Take-Two now has significant control of Ruffian. The second, dated Oct 6, is a certificate of name change, confirming that the studio has been rebranded as Rockstar Dundee.
Rockstar Dundee will be the tenth studio under the Rockstar banner, following Rockstar North, Rockstar Leeds, Rockstar Lincoln, Rockstar London, Rockstar New York, Rockstar New England, Rockstar San Diego, Rockstar Toronto and Rockstar India.
TakeTwo Interactive Software, Inc. Price and Consensus
Take-Two’s expansive acquisitions of gaming studios are expected to boost its competitive position against the likes of Electronic Arts (EA - Free Report) , Zynga and Activision Blizzard , among others.
On Aug 18, Take-Two announced that it had entered into a definitive agreement to acquire privately-held Playdots for $192 million.
The studio has created three mobile hits, Dots, Two Dots and Dots & Co., which have been downloaded more than 100 million times. With 2,900 levels of content, Two Dots was selected as an Editor's Choice in both the Google Play Store and Apple App Store.
Meanwhile, Take Two’s acquisition of Barcelona-based free-to-play mobile game developer, Social Point, is helping it to fast penetrate the rapidly growing mobile gaming market. Social Point is expanding the gaming portfolio with the launch of Tasty Town and Word Life. It has a robust slate of new releases (10 games) for the remainder of 2021.
Expanding Portfolio Stokes Top-Line Growth
Solid adoption and heightened user engagement levels of games including Grand Theft Auto (GTA) Online and GTA V, NBA 2K20, Red Dead Redemption 2 and Red Dead Online, Borderlands 3, Sid Meier’s Civilization VI, Social Point’s mobile offerings, the WWE series, and The Outer Worlds drove top-line growth in first-quarter fiscal 2021. GAAP net revenues surged 53.8% year over year to $831.3 million.
Videogame sales have been rising for the past couple of months as the coronavirus pandemic has kept people confined to their homes. After an impressive first-quarter performance, video game sales hit an all-time high in the second quarter 2020.
According to data from the NPD Group, August saw $3.3 billion in consumer spending across video game hardware, software and accessories, reflecting an increase of 37% year over year. Year-to-date spending totaled $29.4 billion, which is 23% higher than the same period last year.
In fact, Take Two’s growth is primarily being driven by GTA and Red Dead Redemption, its most popular franchises. Moreover, the company’s strong momentum is expected to continue due to increased consumer spending and active-user hours on video games, stemming from coronavirus-induced stay-at-home orders.
Additionally, the availability of Disintegration — a hybrid first-person shooter and real-time strategy game — is expected to expand its user base.
Further, upcoming releases such as Private Division’s Kerbal Space Program: Shared Horizons free update for console, 2K’s PGA Tour 2K21 and Mafia I for PS4, Xbox One and PC are expected to boost user engagement and bode well for the Zacks Rank #3 (Hold) company’s prospects. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
Take-Two's (TTWO) Rockstar Games Buys Crackdown 2 Developer
Take-Two Interactive's (TTWO - Free Report) key Rockstar Games division has purchased a video game developer, Ruffian Games, and rebranded it as Rockstar Dundee, per TheGamer report. The name is derived from Dundee, the Scottish city where the unit is based.
The studio’s past work includes games such as Halo: The Master Chief Collection and Crackdown 2.
Companies House in the United Kingdom has two relevant listings relating to the acquisition. The first, dated Oct 1, is a notice that Rockstar’s parent company Take-Two now has significant control of Ruffian. The second, dated Oct 6, is a certificate of name change, confirming that the studio has been rebranded as Rockstar Dundee.
Rockstar Dundee will be the tenth studio under the Rockstar banner, following Rockstar North, Rockstar Leeds, Rockstar Lincoln, Rockstar London, Rockstar New York, Rockstar New England, Rockstar San Diego, Rockstar Toronto and Rockstar India.
TakeTwo Interactive Software, Inc. Price and Consensus
TakeTwo Interactive Software, Inc. price-consensus-chart | TakeTwo Interactive Software, Inc. Quote
Acquisitions to Strengthen Competitive Position
Take-Two’s expansive acquisitions of gaming studios are expected to boost its competitive position against the likes of Electronic Arts (EA - Free Report) , Zynga and Activision Blizzard , among others.
On Aug 18, Take-Two announced that it had entered into a definitive agreement to acquire privately-held Playdots for $192 million.
The studio has created three mobile hits, Dots, Two Dots and Dots & Co., which have been downloaded more than 100 million times. With 2,900 levels of content, Two Dots was selected as an Editor's Choice in both the Google Play Store and Apple App Store.
Meanwhile, Take Two’s acquisition of Barcelona-based free-to-play mobile game developer, Social Point, is helping it to fast penetrate the rapidly growing mobile gaming market. Social Point is expanding the gaming portfolio with the launch of Tasty Town and Word Life. It has a robust slate of new releases (10 games) for the remainder of 2021.
Expanding Portfolio Stokes Top-Line Growth
Solid adoption and heightened user engagement levels of games including Grand Theft Auto (GTA) Online and GTA V, NBA 2K20, Red Dead Redemption 2 and Red Dead Online, Borderlands 3, Sid Meier’s Civilization VI, Social Point’s mobile offerings, the WWE series, and The Outer Worlds drove top-line growth in first-quarter fiscal 2021. GAAP net revenues surged 53.8% year over year to $831.3 million.
Videogame sales have been rising for the past couple of months as the coronavirus pandemic has kept people confined to their homes. After an impressive first-quarter performance, video game sales hit an all-time high in the second quarter 2020.
According to data from the NPD Group, August saw $3.3 billion in consumer spending across video game hardware, software and accessories, reflecting an increase of 37% year over year. Year-to-date spending totaled $29.4 billion, which is 23% higher than the same period last year.
In fact, Take Two’s growth is primarily being driven by GTA and Red Dead Redemption, its most popular franchises. Moreover, the company’s strong momentum is expected to continue due to increased consumer spending and active-user hours on video games, stemming from coronavirus-induced stay-at-home orders.
Additionally, the availability of Disintegration — a hybrid first-person shooter and real-time strategy game — is expected to expand its user base.
Further, upcoming releases such as Private Division’s Kerbal Space Program: Shared Horizons free update for console, 2K’s PGA Tour 2K21 and Mafia I for PS4, Xbox One and PC are expected to boost user engagement and bode well for the Zacks Rank #3 (Hold) company’s prospects. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot stocks we're targeting >>