It’s been a good third quarter for publisher Take-Two, which posted $1.57 billion in net bookings, $1.248 billion in revenue, and $350 million in gross profit. The success is thanks in no small part to stellar sales of its rootin’-tootin’ outlaw-shootin’ sandbox Red Dead Redemption 2, which has sold a staggering 23 million copies since its October release, vastly exceeding the company’s expectations. On top of shipping more copies in its first 15 days than the original Red Dead did in eight years, the title also had “the highest opening weekend of any title in entertainment history of any sort,” according to Take-Two CEO Strauss Zelnick.
The game’s multiplayer component, Red Dead Online, has also been performing remarkably well, “trending ahead of how GTA Online was performing by the same point in its lifecycle.” The success of RDO also probably has something to do with the company’s “significant growth in digitally-delivered revenue,” where “recurrent consumer spending” — i.e., DLC and microtransaction sales — saw a 31% increase. In light of the successful quarter, the company now “expects revenue to range from $2.66 to $2.71 billion (up from expectations of $2.55 to $2.65 billion)” as well as “net bookings of $2.89 billion to $2.94 billion,” and “income is expected to range from $354 to $367 million.”
In addition, Zenick has also commented on the recent launch of the Epic Games Store, saying that he ultimately sees the platform as a potential boon for business: “From our point of view, we don’t see another retailer as a disruption,” he says, adding, “We want to be where the consumer is. We see competition on the retail side to be a good thing. It just means more distribution.” When asked if Take-Two might be formulating plans to launch its own distribution platform, however, Zenick said, “That’s not something that’s in our DNA. We make entertainment. We’re really not a retailer.”
