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Take Two reports record revenue on back of  Grand Theft Auto V
Take Two reports record revenue on back of Grand Theft Auto V
May 13, 2014 | By Christian Nutt




Today, Take Two Interactive -- the parent company of Rockstar and 2K -- announced record revenue and 94 percent revenue growth year-on-year in its results for the year ended in March.

Revenues climbed to $2.4 billion, as profits soared to $361.7 million -- a big bounce back from a loss of $31.2 million in the prior year.

The reasons for the success are obvious, and they're what Take-Two has been talking about for some time now. In the words of CEO Strauss Zelnick: "Rockstar Games’ Grand Theft Auto V reached $1 billion in sales faster than any entertainment release in history, NBA 2K14 enjoyed the franchise’s strongest launch, Borderlands 2 became 2K’s top-selling title, and our digitally-delivered revenue grew to its highest level ever."

The company says that it has shipped more than 33 million units of the title to retailers.

This is essentially the same story we heard after its third quarter results, during which GTA V and NBA 2K14 shipped.

Notice anything? The company had no significant releases since then -- aka the most recent quarter -- and unsurprisingly posted losses for that period. Its fiscal fourth quarter 2014, from January 1 to March 31, 2014, suffered a $30.8 million loss -- a big fall from last year's $21.2 million profit for the same period, when BioShock Infinite shipped.

Quarterly revenues were $195.2 million, down from $299.5 million for the same period a year ago.

Alongside its release, the company noted that "Grand Theft Auto V was the best-selling console video game of 2013 in North America, Latin America and Europe combined."


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Comments


Ricardo Hernandez
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White it is true the company is very reliant on GTA on the other hand in an age of false experiments, shutdowns, lay offs and what nots many wish to lose 35 million two years an then earn 350+ million profit on one year.

Merc Hoffner
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That's 35 million a quarter. Multiply that by four for a year, then multiply that by five for a 5-year dev cycle and then you're looking at the kind of sustained (and unsustainable) losses you'd be enjoying between GTA releases. That's an exaggeration. This is not:

Yearly net income in $millions:
2006: (185) (October filing)
2007: (138) (October filing
2008: 97 (October filing)
2009: (140) (October filing)
2010: 43 (October filing) / (123) (March filing)
2011: 48 (March filing)
2012: (108) (March filing)

For those who don't know, brackets (parentheses) means losses.

Michael Joseph
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2.4 billion is a lot of revenue for only 360million in profit.

1,000 employees making $200k a year each in salaries and benefits is only $200 million. Where does the money go? Advertising? $500 million? Manufacture and distribution of physical media can't be more than 10.00 a copy. Call it $330 million? Leases on office space? Would hope they owned the buildings and land they occupied.

Seriously though, I'm not suggesting any money is being funneled anywhere to avoid taxes, but if anyone could help shed light on how 2.4 billion in revenue nets 15% profit it would be enlightening.

And how do you calculate when you've hit the sweet spot when it comes to advertising dollars spent?

edit: it was reported back in Sept 2013 that GTA 5 cost $265M to produce and market.


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