Here's What It Means for Investors – Motley's Fool



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Take-Two Interactiveof (NASDAQ: TTWO) Red Dead Redemption 2 (RDR 2) Is available in store shelves and can be downloaded after years of accumulation, and it seems to be in vogue. The title posts an average score of 97 out of 100 on all OpenCritic reviews, with dozens of perfect and almost perfect scores, which positions it as the most critically acclaimed game. This is a welcome development for Take-Two shareholders and he suggests that the game has a good chance of exceeding its noble expectations.

A cowboy holding revolvers in "Red Dead Redemption 2."

A cowboy in Red Dead Redemption 2. Image Source: Take-Two Interactive.

Take-Two and Rockstar Games offer impeccable quality

The Rockstar Games subsidiary of Take-Two, which is responsible for successful franchises such as Red Dead Redemption and Grand Theft Auto (GTA), has earned the reputation of being one of the most talented and consistent developers of the video game industry. Its latest release will further consolidate this reputation, with more than a handful of critics describing the title as a masterpiece, the ultimate developer achievement and one of the best games of all time.

Good reviews do not necessarily mean that the game will be a success, but for the highly anticipated titles of established series, almost unanimous critical reviews often testify to the ability to resist. Hype alone badured that Red Dead Redemption 2 would be one of the best-selling games in 2018, but the fact that Rockstar and Take-Two have once again delivered a normative product suggests that the title is poised to become a sales engine for years to come .

Shareholders should celebrate. Longevity is more important than ever in today's gaming industry, which often considers that the production budgets of triple-A games are similar to those of big Hollywood movies and that sales Content in games is the key to generating huge profits. What risk there was of RDR 2 falling flat after an initial increase in sales can probably be put aside.

A leading talent and a winning formula

Red Dead Redemption 2The fantastic critical reception of this movie not only indicates that the game will be a good seller after its release, but that it also validates the Take-Two and Rockstar development model for triple-A headlines. Being open to many and sometimes long delays in delivering securities with meticulous attention to detail is not risk free, but it pays for the company.

Red Dead Redemption 2 was originally scheduled for a 2017 release, then slipped into a launch window for spring 2018, before finally being moved to its debut on October 26. Delays are almost always perceived by investors as concerned about the quality of their products and their staggering budget, but Rockstar has repeatedly used its extra development time to deliver products with the kind of sustaining capacity that translates into a commitment and expenses after the exit.

Grand Theft Auto V also had many delays, but then received rave reviews and became one of the most successful games commercially. GTA V is an exceptional success in the history of games, but it provides a rough model of what to expect. Red Dead Redemption 2.

GTA V released on SonyPlayStation 3 and MicrosoftThe Xbox One of 2013. It was then updated for release on PlayStation 4 and Xbox One in 2014 and received a PC version in early 2015. The game is now sold at over 100 million copies. Copies in all versions and continues to show strong sales. and keep players engaged with its online mode.

Red Dead Redemption 2 is not going to approach the sales figures of GTA V. But there is a good chance that it exceeds the some 15 million units that the original Red Dead Redemption sold and end up being significantly more profitable thanks to a greater focus on the online multiplayer mode that will encourage ongoing consumer spending.

RDR 2, which is currently only available on PlayStation 4 and Xbox One, will almost certainly also be available on PC. It is a serious candidate to receive an updated version upon the arrival of the next generation of consoles. With his basic experience widely and wildly acclaimed, Red Dead Redemption 2 adds another clbadic to the Take-Two library that can be expanded and iterated.

The missing piece of the puzzle

Although Rockstar took a little longer to perfect the basic experience of a single player to RDR 2, players and investors are still waiting for one last crucial element to complete the package. As was the case with GTA V, Red Dead Redemption 2Online mode is not accessible at the exit.

Players will have to wait until November to test the game's multiplayer modes. In addition, there is little information available about the features available and how Rockstar will develop and expand the title's online modes beyond this window.

But with RDR 2The basic gameplay is the subject of rave reviews and Rockstar is likely to incorporate elements GTA VIn extremely successful online mode, investors can expect the latest version of Take-Two to serve as a performance engine for the next few years.

Teresa Kersten, a LinkedIn employee, a subsidiary of Microsoft, is a board member of The Motley Fool. Keith Noonan owns Take-Two Interactive shares. The Motley Fool owns shares and recommends Take-Two Interactive. Motley Fool has a disclosure policy.

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