Take-Two Interactive Software Inc. (NASDAQ: TTWO), creators of games such as ‘Grand Theft Auto V’, is up as high as 12% today in reaction to a positive earnings call. Their chief game GTA V was released back in 2013 and has maintained consistent sales quarter-to-quarter by providing continual updates and in-game purchase offers. As of April this year, the game alone has brought in $6 billion to Take-Two since its birth.
Just this quarter Take-Two reported total net bookings at $348.3 million, up from $288 million from Q2 2017. Many gaming companies use net bookings instead of net sales as it accounts for digital sales and in-game purchases. This is a strong statistic as it shows sales are still increasing even though their primary game is continuing to age. Additionally, Take-Two’s earnings per share is up to $0.63 from $0.57 in Q2 of last year.
In the last few years’ video gaming has turned into a completely new beast, drawing in crowds of thousands to watch others play live or stream. Streamers on platforms such as Twitch or YouTube are bringing in hundreds of thousands for just playing video games live. It is reported that one streamer, Tyler ‘Ninja’ Blevins, makes over $500,000 a month off his streaming revenue alone. The introduction of eSports is on the rise, with events like Overwatch League which fill up arenas. As eSports is starting to gain popularity, it is easy to see that there is extreme potential in the industry.
The video game industry often sees spurts of growth sparked by revolutions and advancements in technology. We’ve seen this before with the Atari, followed by the next revolution, the Xbox and PlayStation. The market continues to grow exponentially each time new technology becomes readily available. What is exciting, is the technology that is still being developed such as virtual reality and augmented reality. These forms of video games hopefully can again bring some more money into the video gaming market.