Take-Two Interactive Software, Inc.
) recently launched the next-generation console version of
) PlayStation 4. The game will also be available for Xbox One
released on Oct 1, 2013 secured a metacritic score of 84.
delivers an enhanced gaming experience. Its dynamic gameplay
engine has been upgraded with the help of ECO-Motion Engine to
portray player emotion and enhanced controls. The eco-motion
engine also enables better control on the game.
launch on the new consoles is expected to drive Take-Two's market
share in the near term. We believe that Take-Two has a decent
lineup of new games, which will boost its top-line growth in the
upcoming holiday season.
According to Gartner video gaming industry sales is expected
to reach $93.0 billion at the end of 2013, up from $79.0 billion
in 2012. Moreover, the console market is expected to touch $111.0
billion by the end of 2015, which will in turn positively
influence the purchase of new console games.
We believe that this presents significant growth opportunity
for Take-Two going forward. The company's latest release
Grand Theft Auto V
received rave reviews. In the recently concluded fiscal 2014,
revenues surged 340.3% year over year to $1.27 billion.
This also helped Take-Two to provide an optimistic outlook for
fiscal 2014. The company expects non-GAAP net revenue to be in
the range of $2.20 to $2.30 billion, while earnings are expected
to be in the range of $3.50 to $3.75 per share.
Although the company has a decent product portfolio, stiff
competition from game developers such as
Activision Blizzard Inc.
) and social gaming companies such as Zynga remains a major
headwind in the near term. Moreover, a fragmented gaming industry
may temper growth prospects to a certain extent.
Take Two has a Zacks Rank #3 (Hold).
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