Take-Two Posts $299M Profit Thanks to 'GTA Online,' 'Red Dead Online' In-Game Spending

Helios

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The online components of the two popular Rockstar games continue to "exceed expectations," says Take-Two Interactive CEO Strauss Zelnick.
Take-Two Interactive, which owns video game publishers Rockstar Games and 2K, reported gross profits of $299 million in the first quarter of its fiscal year 2020 on Monday, while GAAP net revenue grew to $540 million, a 39 percent increase year-over-year.

The majority of revenue over the period was generated by "recurrent consumer spending" — which includes in-game purchases and add-on content to existing titles — from titles such as Grand Theft Auto Online and Red Dead Redemption 2. Recurrent consumer spending accounted for 58 percent of total GAAP net revenue over the period.

"It’s amazing, GTA Online actually grew year-over-year," Take-Two CEO Strauss Zelnick tells The Hollywood Reporter. Grand Theft Auto V, the core game on which GTA Online runs, was originally released nearly six years ago in October 2013. Since then, it has become the highest-grossing media title of all time.

Zelnick also notes that Red Dead Online — the multiplayer online component of Rockstar's Red Dead Redemption 2, which first launched in November and officially ended its beta period in May — has "exceeded expectations" and "continues to gain momentum."

Take-Two has a number of AAA game launches on the horizon, with NBA 2K20 and Gearbox's Borderlands 3 set to bow in September and WWE 2K20 and The Outer Worlds slated for October.

As a result of the strong showing over the quarter, Take-Two adjusted its projections for next quarter and the entire fiscal year. For the second quarter of 2020, a three-month period ending on Sept. 30, Take-Two is adjusting revenue expectations from $855 million to $905 million. Meanwhile, for the full fiscal year 2020, the company is now projecting $2.9 billion in revenue, up from the $2.8 billion it previously expected.

Last quarter, Take-Two reported gross profits of $280 million, while profits for the full year topped $1.1 billion, boosted in large part by the successful launch of Rockstar's Red Dead Redemption 2 in October and the continued success of Grand Theft Auto Online.
 
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mcz117chief

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People always wanted GTA to be playable online. Ever since 3, people kept dreaming about online/multiplayer GTA. Now that they finally decided to give people what they want they are surprised it's popular?
 

nkarafo

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People always wanted GTA to be playable online. Ever since 3, people kept dreaming about online/multiplayer GTA. Now that they finally decided to give people what they want they are surprised it's popular?
Who said anything about online? This is about micro transactions.
 

Acidizer

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Jun 7, 2018
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Depressing shit.

Watch these get only more integrated at the expense of single player freedom.

These publishers will be brainstorming overtime until they've extracted all they think they can. Wonder what Rockstar thinks of them, I honestly don't think they are that against them. I think they're getting greedy too.
 

Hado

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Aug 13, 2015
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I don't understand who the fuck would spend any money on micro transactions in GTA online but this weekend I found out...

My 10 year old cousin is unfortunately a spoiled child and his father buys him everything he wants including megalodon sharkcards in GTA o. I want to die
 

Gamernyc78

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Jun 11, 2018
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I hate micro transactions, well most of them but not all. But this is good to keep a solid online gaming community engaged and alive. How many times haven't we seen a dope online component of a game like Killzone 2 just die or get shut down? These investments allow the online component to keep living as long as ppl show interest and buy micro transactions.

I'm just playing devils advocate here ppl.
 
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johntown

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Well gamers can complain all they want about MTX but with stats like this they will continue to be a thing going forward......unfortunately.
 
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Petrae

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This is a perfect example of why microtransactions are never going away. It’s so much free money for these publicly traded publishers that shareholders would riot if the suggestion to limit or remove them was made.

It’s a shitty reality, which I’ve had enough of and will make it easy to forego upcoming and future console generations. I’m done investing $400+ on consoles just to be subject to constant microtransactions and other bullshit that I’ve grown to loathe over the last couple of gens.

Fuck the modern video game industry and the microtransaction cancer that’s infected it.
 

DarthBuzzer

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Nice profit margins. I wish the best for them. I bought $200 worth of shark cards and am pleased with the results. I truly hope they continue providing such value in future Rockstar games. It really gives me a sense of accomplishment.
 
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Virex

Formerly 'Solaris'
Jan 26, 2018
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Slightly off-topic so apologies in advance: Have they updated GTAV with support for the PS4Pro and XB1X yet?
Nope, an update to enhance GTA V for PS4 Pro and Xbox One X would force them to do something that they can't make money from
 

mckmas8808

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Nice profit margins. I wish the best for them. I bought $200 worth of shark cards and am pleased with the results. I truly hope they continue providing such value in future Rockstar games. It really gives me a sense of accomplishment.
Wow this reads so corporate like lol.
 

decisions

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Jun 16, 2015
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Worrying because RDR2 was their best work by far and one of the best games ever. But this makes me wonder if the first R* game I cared about will be the last. No interest in trying RDRO, let alone spending a dime in it.