Take-Two CEO: Why We Don't Release A New Grand Theft Auto Every Year
It has been game on for Grand Theft Auto publisher Take Two Interactive (TTWO) - Get Report . The company, which also develops well-known titles Red Dead Redemption, NBA 2K, Civilization, and WWE 2K ended fiscal 2016 with its third consecutive year of stronger-than-expected sales and profit. Sales for the year-ended March 31 fell 6.4 percent to $1.56 billion, as last year benefited from a more extensive title release slate such as the launch of Grand Theft Auto V on PlayStation 4 and Xbox One. But, sales outperformed the company's original outlook of $1.3 billion to $1.4 billion. Earnings for the year tallied $1.96 a share compared to an outlook of $0.75 to $1.00 a share offered at the start of the fiscal year. Sales in the fourth quarter clocked in at $342.5 million vs. guidance for $260 million to $310 million due primarily to stronger than expected results from Grand Theft Auto V and Grand Theft Auto Online. NBA 2K16 also exceeded Take-Two's sales expectations. The better than anticipated performance in what remains a crowded video game space - made no easier by the competition for consumer eyeballs with Netflix (NFLX) - Get Report - has led investors to snatch up Take-Two's stock. Shares have surged 30 percent over the past year, outperforming the Nasdaq Composite's 4.3 percent decline. With another solid year under its belt, attention has turned to when Take-Two will unveil Grand Theft Auto 6 to capitalize on GTA 5's success in selling over 65 million copies since its launch a couple years ago. So far, Take-Two has not issued a release date, instead focusing on continuing to upgrade the gameplay for GTA 5 in order to keep consumers hooked. But, seeing as GTA 5 has been on the market for over two and a half years, it's only natural to wonder what's taking Take-Two so long to launch the next iteration in the popular franchise. 'We aim for perfection, and that takes time,' Take-Two Interactive chairman and CEO Strauss Zelnick told TheStreet, adding, 'By resting our core products and not being on an annualized schedule we build anticipation.' Zelnick pointed out that frequent new content releases for a title like Grand Theft Auto keeps people engaged and drives recurring consumer spending.
