Primary revenue driver in the last quarter
Gaming companies such as Take-Two Interactive (TTWO), Electronic Arts (EA), and Activision Blizzard (ATVI) are highly dependent on popular franchises to drive sales. Games such as Red Dead Redemption (or RDR), FIFA, and Call of Duty have generated billions in sales and are key revenue drivers.
Take-Two’s Grand Theft Auto (or GTA) was released way back in fiscal 2014, and the company experienced a huge jump in sales that year. Similarly, sales are expected to rise by 48% in fiscal 2019. Now, Take-Two is banking on Red Dead Redemption 2 for revenue growth.
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Red Dead Redemption 2 was launched on October 26 last year, and it achieved the biggest opening in entertainment history with over $725 million in sales in the first three days. This game sold more units in the first eight days than what the first installment sold in its first eight years.
Over 23 million units sold in less than four months
Red Dead Redemption 2 sold over 23 million units within the first the four months, which translates to sales of $1.38 billion at $60 per unit. According to NPD Group, this game was the best-selling video game in 2018 in the United States.
TTWO’s Red Dead Redemption 2 and Grand Theft Auto 5 were two of the highest rated titles on PlayStation 4 (SNE) and the Xbox One (MSFT). Buoyed by the success of Red Dead Redemption, Take-Two also launched the Red Dead Online beta last November.