Take-Two's Latest Video Game Is On Track To Be One Of The Most Successful Entertainment Releases Ever

Take-Two Interactive Software (NASDAQ: TTWO) is still a smaller company than chief rivals Activision Blizzard (NASDAQ: ATVI) and Electronic Arts , but the video game publisher can now claim to be one of the biggest entertainment releases ever. The company's Red Dead Redemption 2 ( RDR 2 hit the market on Oct. 26 and generated a whopping $ 725 million in sales and sales by the publisher's own Grand Theft Auto V .

RDR 2 's launch was nothing short of fantastic, and future data suggests strong post-release sales and that is one of the best ways forward.

Source Image: Take-Two Interactive.

Take-Two's latest surpasses big expectations

Dividing Red Dead Redemption 2 's $ 725 million in the weekend for sales of the $ 60 price that is more than 12.5 million copies were sold across the stretch. However, take-two also has a special edition of the game priced at $ 80, so it's worth about 10 million and 12 million. As per the company's third-quarter earnings release, published on Nov. 7, RDR 2 has now sold 17 million copies – a figure that should thrill shareholders.

Red Dead Redemption 2 was always poised to be one of 2018's best-selling games. It's a successful, highly esteemed franchise from Rockstar Games – one of the industry's most respected developers and one of the few. However, Rockstar's latest game is now on track to easily surpass prerelease expectations.

Leading up to and immediately following Red Dead 's launch, some analysts expected Activision Blizzard' s Call of Duty: Black Ops 4 would claim the title of 2018's best-selling game. Black Ops 4 $ 500 million in sales for the first half of the year – an impressive debut that was accompanied by news of the franchise franchise set for engagement.A report from TickerTags analyzing Twitter mentions for each game suggests that RDR 2 would fall short of Black Ops 4 's sales, analysis from Piper Jaffray, a similar outcome, and other analysts expected the titles to be roughly in line with each other.

Take-two shares RDR 2 's release, not uncommon for a gaming company even after it has been released, but there are some suggestions that the game might be a bit short of expectations. That's no longer the case. It's now almost certain that Rockstar's latest will be 2018's top-grossing game and smash analyst targets.

Source Image: Take-Two Interactive.

Red Dead Redemption 2 has already surpassed the roughly 15 million copies and is not far from the target audience. Piper Jaffray expected the game to hit by March. The title could not be done before 2018 is out. With a PC version still to be released and the potential for updated versions to be released on next-generation consoles, there's a good chance RDR 2 will sell more than 50 million copies.

Red Dead moves into the black

Wedbush analyst Michael Pachter estimates that RDR 2 could have cost somewhere in the neighborhood of $ 170 million dollars to produce, though it's also possible that the development budget is substantially higher than that figure. Some reports suggest that the first versions of Grand Theft Auto V cost about $ 265 million to develop and market, and production costs have risen to $ 1.50 million, but the game may have cost somewhere in the neighborhood of $ 200 million to $ 250 million to produce and somewhere between $ 150 million and $ 200 million to market.

A development and marketing budget of roughly $ 400 million would make Red Dead Redemption 2 one of the most expensive games ever and in its budget roughly in line with movies from major movie franchises like Star Wars or the Marvel Cinematic Universe. Using this budget figure, the title would already be profitable. RDR 2 $ 0.50 million in sales in the neighborhood of $ 600 million in sales after sales and sales, the market would have been much higher.

Red Dead next big test

With fantastic sales and near-unanimous critical acclaim, the core Red Dead Redemption 2 package is already a hit, but at least one big variable remains. Like Take-Two's hugely successful Grand Theft Auto V , RDR 2 was conceived with a multiplayer mode that was intended to keep the players engaged and spending long after they've completed the single-player content. The Western-themed action game has been launched at the end of November.

The pull of GTA V 's online mode helped keep the game up and running, and it has generated a growing stream of high-margin revenue. Take-Two is looking for RDR 2 's multiplayer to have a similar effect. Without knowing specific details about the game's online content, it's too early to proceed Grand Theft Auto Online . HOWEVER, Red Dead 's already well-known and well-received core gameplay experience give its online multiplayer mode a good chance of being successful.

Some fans and reviewers have rightly pointed out that RDR 2 gameplay has a slower pace than that of GTA V . That makes sense given that the new game is partially embracing the feel of the Western movie genre, while Rockstar's modern-day crime series is known for crazy scenarios and fast-paced action. A slower pace might be expected to narrow the appeal of Red Dead 's online mode, but the differentiation could not help between two modes.

If RDR 2 's online mode proves to be an engaging experience, investors can look forward to the game Grand Theft Auto V from a sales perspective. That would be a fantastic, expectation-crushing performance for Rockstar's Western epic and make it one of the most successful ever.

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Keith Noonan owns shares of Activision Blizzard and Take-Two Interactive. The Motley Fool owns shares and recommends Activision Blizzard and Take-Two Interactive. The Motley Fool recommends Electronic Arts. The Motley Fool has a disclosure policy.