Industry-leading intellectual property
Take-Two Interactive Software (TTWO) has seen its revenues increase from $825 million in fiscal 2012 to ~$1.4 billion in fiscal 2016. According to the company, this revenue growth was possible as it has a diverse portfolio of intellectual property.
Take-Two Interactive notes that it has ten franchises with “at least one five-million unit selling release, and more than 45 individual, multi-million unit selling titles.” Since 2007, Take-Two Interactive has added eight new franchises, including best-selling games such as Evolve, WWE 2K, BioShock, and Borderlands.
Games across genres
Take-Two Interactive launched several games in 2016 in genres including sports, action, adventure, role-playing, strategy, and fighting. According to Statista, shooter and action games dominate video game sales and account for 24.5% and 22.9%, respectively, of total sales in the US (IVV).
This was followed by the sports, role-playing, and adventure genres, which account for 13.2%, 11.6%, and 7.7%, respectively, of total sales.
Why is Take-two Interactive optimistic about long-term growth?
According to the Entertainment Software Association (or ESA), more than 155 million Americans (SPY) play video games. Each game-playing household has an average of 1.7 gamers.
Approximately 80% of these US households own a device to play video games, and 48% of these households own a dedicated gaming console such as the Xbox and the PlayStation. More than 42% of Americans regularly play video games, totaling more than three hours per week.
The next article will look at the growing importance of digital revenues in the gaming industry.