Take-Two Preps Social Game as Digital Drives More Money in Q4
Take-Two Interactive, the videogame maker known for Grand Theft Auto, said 15 percent of its revenues in the fourth quarter ended March 31 came from digital sources.
In particular, the New York-based company said digital revenues were driven by offerings for Red Dead Redemption, the Grand Theft Auto franchise, Borderlands and the Sid Meier’s Civilization franchise.
Many game makers have identified digital content as a way to extend the life of console games and to create recurring revenue streams between major releases. As we’ve reported previously, the definition of digital varies among companies. Some define it as content downloaded over an Internet connection to consoles, or mobile or social games.
Activision Blizzard, the maker of World of Warcraft and Call of Duty, said 50 percent of its first quarter revenues came from digital, and Electronic Arts were ecstatic that digital revenues for its fiscal year ended March 31 totaled $833 million, exceeding its forecast of $750 million.
During the company’s earnings call this afternoon, Take-Two’s CEO Strauss Zelnick said it was exploring other digital offerings, including emerging platforms such as massively multi-player online games in China, in addition to social games. He said they have several projects underway that have the opportunity to generate significant revenues. One of the titles in the works is Civilization, which is currently in beta on Facebook and will launch some time this summer.
The company said its digital revenues currently include: downloadable content to both Xbox Live and the PlayStation Network; through PC delivery services, like Steam; and content sold through mobile platforms, such as iPod, iPad, and Sony PSP.
For the year ended March 31, the company said revenues totaled $1.14 billion, growing 49 percent over the year-ago period. Net income totaled $53.8 million, or 62 cents a share, compared to a net loss in the year-ago period. In the fourth quarter, the company lost 27 cents a share or $22 million on revenues of $182 million.