Analyst slams Take-Two for "heavy reliance on retail"

Take-Two needs to adapt its strategy to lessen its reliance on High Street retail, one analyst has claimed.

The publisher will this week likely announce that it has shipped an eye-watering 21.5m copies of Grand Theft Auto V, with revenue ahead of forecasts.

Yet despite this, VG247 quotes HIS Electronics & Media’s senior games analyst Christine Arrington as pointing out that digital and mobile currently account for just eight per cent of Take-Two’s revenue which is by far the lowest of the major western publishers IHS tracks”.

By contrast, digital/mobile accounts for 62 per cent of Activision’s revenue and 47 per cent of EA’s.

Take Two has far to go before its heavy reliance on retail sales is mitigated by diversification into digital, online and mobile opportunities,” Arrington stated.

Monetising the online portion of GTA 5 offers Take-Two the opportunity to build its digital business relatively quickly and to claw back its position against its direct competition.

However, the problems Take Two has experienced in deployment and roll-out of GTA Online highlights the expertise gap that needs to be filled when implementing ambitious online games experiences across significant user bases.”

About MCV Staff

Check Also

Top Trumps announces new NFT card set for its #TRENDING range

Top Trumps has announced a new card game set based on non-fungible tokens