Interesting. Not sure wall street is pricing in the guidance though. I think it prices in well above that.
I guess the main concern is that the game won't be fantastic. Wall street got burned bad with cyberpunk, falling from 450 to 77 zloty per share after launch.
I wonder if they get royalties from Ukrainians who use a modified version of gta5 to train their drone pilots. Maybe this is an AI play in the making 😁
Don't forget as well - the initial launch is for console only. When it releases on PC a year or two later there'll be a second, huge wave of revenue coming.
Fully agree on the above and have taken the same position! Just one to note on the 1.4 billion incremental revenue guide for GTA VI. We do have to account for some cannibalisation of other revenue centres like GTA V which would bring down overall revenue. Nevertheless the guide is obviously sandbagged and the sell off yesterday just shows how insane Mr Market can be at time! Great write up 👏
Interesting. Not sure wall street is pricing in the guidance though. I think it prices in well above that.
I guess the main concern is that the game won't be fantastic. Wall street got burned bad with cyberpunk, falling from 450 to 77 zloty per share after launch.
I really don’t think you can compare cyberpunk with GTA here, has no relevance to Rockstar.
I wonder if they get royalties from Ukrainians who use a modified version of gta5 to train their drone pilots. Maybe this is an AI play in the making 😁
I actually had to google that. Great find! Looks legit so they would be receiving revenue for that.
Don't forget as well - the initial launch is for console only. When it releases on PC a year or two later there'll be a second, huge wave of revenue coming.
Great point indeed. The left tail will last much longer than expected.
I like the prospects of GTA6 but given the success of GTA5 why TTWO is still unprofitable?
It is cyclical. TTWO has spent billions upfront on GTA VI game development costs before earning a single cent in revenue.
Fully agree on the above and have taken the same position! Just one to note on the 1.4 billion incremental revenue guide for GTA VI. We do have to account for some cannibalisation of other revenue centres like GTA V which would bring down overall revenue. Nevertheless the guide is obviously sandbagged and the sell off yesterday just shows how insane Mr Market can be at time! Great write up 👏
Thank you for the feedback and yes I agree that there will be some cannibalisation on GTA V so that is a point worth highlighting.