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Take Two (TTWO) Launches Cloud Chamber, New Bioshock in Development

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Take-Two Interactive’s (TTWO - Free Report) 2K label recently announced the launch of Cloud Chamber, a brand-new development studio under the company’s publishing label.

The company also announced that Cloud Chamber has started developing the next installment of Bioshock franchise.

Notably, Bioshock is one of the best-selling video game franchises of all times. Per Gamespot, Bioshock Infinite, the latest game in the franchise, sold around 11 million units. The overall series generated a combined sales figure of more than 33 million copies till May, 2019.
 

 

Expanding Portfolio Stokes Top-Line Growth

The new studio is part of Take Two’s organic growth strategy, which focuses on building a diverse portfolio of industry leading IPs.

The company has released a string of successful games, including some of this year’s biggest hits like Red Dead Redemption 2, The Outer Worlds, Ancestors: The Humankind Odyssey and Borderlands 3. These have been instrumental in driving Take Two’s top-line growth, with the company generating revenues of $857.8 million in second quarter fiscal 2020, up 74% year over year.

Moreover, the company recently launched Kerbal Space Program’s Breaking Ground expansion on Microsoft’s (MSFT - Free Report) and Sony’s consoles. While the base game is about building and launching space-bound rocket ships, the Breaking Ground expansion focuses on planetary exploration of mysterious surface features like mineral formations, meteors and craters on all celestial bodies in the Kerbolar system.

Further, Take Two has a strong slate of upcoming releases including new IP as well as sequels for some its most popular franchises. Its upcoming releases include Disintegration and Kerbal Space Program 2.

It is also venturing into emerging platforms with the release of Red Dead Redemption 2, NBA 2K20 and Borderlands 3 on Google’s (GOOGL - Free Report) Stadia and The Outer Worlds on Nintendo’s (NTDOY - Free Report) Switch.

Thus, with its expanding portfolio and active investments in emerging platforms, Take Two is well positioned to capitalize on the positive trends in the video game software industry which, per Reportlinker, is expected to witness CAGR of 6.4% during the period 2019-2024.

Notably, Take Two raised its outlook for fiscal year ending Mar 31, 2020. The company now expects revenues in the range of $2.93 billion to $3.03 billion, compared with the previous range of $2.83 billion to $2.93 billion.

Zacks Rank

Take Two currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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