Giving Grand Theft Auto V away for free was apparently just one more genius business move on top of many others as it is being reported that options traders are betting big money on Take-Two’s earnings success in the past quarter.
Optimize Advisors President Michael Khouw told CNBC that buyers are pulling for Take-Two to continue with record-setting stock prices. “A lot of that activity in the opening buys department was in the May 145-calls expiring this Friday,” said Khouw. “The buyers of these calls are making bullish bets that the stock is going to pop still further after hitting new all-time highs [Tuesday].”
Of course, this isn’t anything new for the company’s perennial money-printing game and the major boost its online mode is going to get with the limited free download on PCs is only going to extend that streak.
But what is unique is that Take-Two is making a ton of money when everyone else is also doing pretty well in the industry. Heck, even moribund GameStop is experiencing record sales with its online unit during this pandemic.
Yet for Take-Two, the success story is much more attributable to a solid library of games and services than anything else.
One particular area that many of us will be watching is the Red Dead Online game mode that came along with the blockbuster title Red Dead Redemption 2. Many people were thinking that RDO could become Take-Two’s next big cash cow after GTA Online. This is even after the rocky start the online game had because, let’s face it, GTA Online also had a hard road in its early days.
If Take-Two can make lightning strike twice, then their earnings are probably going to be absolutely mind-boggling from here on out. It would also be a real testament to the new “games as a service” model of perpetually updating an online mode and wringing money out of a dedicated core set of players.
And none of this is even beginning to touch upon the ever-bubbling rumors of the next installment in the Grand Theft Auto series. Everyone expects it and, at this point, it is definitely looking like a next-gen project. How much longer we will have to wait, however, remains to be seen. It looks like the days of the PS2 and its string of GTA titles are long gone.
Maybe Take-Two could get in on the remake game with those classic titles? Just a thought.
What do you think of the recent renaissance in video game company earnings? A brief trend brought about by the unique conditions of the COVID-19 lockdown or a more permanent shift in entertainment and media spending? Let us know your thoughts in the comments section.
Source – CNBC