Take-Two Interactive Software, Inc.

Take-Two had a disappointing result and failed to meet the revenue expectations of Wall Street while delivering wider-than-expected losses. The management claims that its post-launch content and new game releases have received significant critical acclaim and on the basis of units sold in the Americas, the company has the highest catalog sales. The sales of Grand Theft Auto V exceeded the expectations of the management during the holiday season and the performance of Red Dead Redemption 2 has also been good. Empires and Puzzles was the top performer and Rollic’s Balls’n Ropes secured the top spot for U.S.’s most downloaded games. During the quarter, in-app purchases of Zynga performed in line with the expectations of the management, and mobile trends improved from prior laws. Rockstar Games, during the quarter, released a collection of new content for both the holiday season and Halloween and a new story-driven update, Los Santos Drug Wars. Rockstar Games also released innovative updates for Red Dead Online, comprising a new Call to Arms and a new Halloween Hardcore Telegram Mission. In December, Firaxis Games and 2K launched Midnight Suns of Marvel on Windows PC via Epic Games Store and Steam, X/S, Xbox Series, and PlayStation 5. The acquisition of Popcore has also strengthened the leadership of the company among hypercasual publishers. We give Take-Two Interactive Software a ‘Hold’ rating with a revised target price.