Anyone who plays video games, and even some that don’t, realize how big of an IP Grand Theft Auto is. Thanks to the success of GTA5 (and it’s Online component), Red Dead Redemption 2, and NBA2K20, Take-Two recorded record-breaking revenue for its fiscal year.
Total revenue was a hair under $3 billion at $2.99 billion. This is a small increase when compared to fiscal 2019 at $2.93 billion.
Most notably however, is that “Recurrent consumer spending” (AKA microtransactions) were up 34% on the year and similar to Activision, accounted for over half of 2K’s total revenue at 51%.
Other notable figures were shared in Grand Theft Auto 5 surpassing 130 million copies sold and Red Dead Redemption 2 surpassing 31 million copies sold.
CEO Strauss Zelnick offered the following statement:
“Our significantly better-than-expected fourth quarter results concluded another extraordinary year for Take-Two, during which we achieved numerous milestones,” Zelnick said. “[That includes] record net bookings of nearly $3 billion, as well as record digitally-delivered net bookings, net bookings from recurrent consumer spending, and earnings. Nearly all of our titles outperformed in the fourth quarter, including NBA 2K20, Grand Theft Auto Online and Grand Theft Auto V, Red Dead Redemption 2, Borderlands 3, and Social Point’s mobile games.”
Given the resounding, continued success of GTA Online, this should come as no surprise. With NBA2K having a rather notorious reputation for microtransactions and Red Dead Online also offering purchases, it’s no surprise they have driven such a large percentage of Take-Two’s overall revenue. This is sadly the state of the industry today.