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BioShock Infinite hits 3.7 million, boosts Take-Two sales

BioShock Infinite hits 3.7 million, boosts Take-Two sales

Mon 13 May 2013 9:04pm GMT / 5:04pm EDT / 2:04pm PDT
BusinessPublishingFinancial

Publisher's full-year revenues jump 47 percent as digital nearly triples, but it fails to post a profit

Once viewed as overly reliant on the Grand Theft Auto franchise, Take-Two has established a handful of new intellectual properties this generation, most notably BioShock and Borderlands. Unfortunately, even successful new sequels in both of those series were unable to help the publisher post a net profit for the fiscal year ended March 31, which the company revealed as part of its year-end financial results today.

In an investor conference call today, Take-Two chairman and CEO Strauss Zelnick announced that BioShock Infinite shipped 3.7 million units to date, with Borderlands 2 moving more than 6 million copies, and NBA 2K13 surpassing the 5 million-shipped mark. That trio helped push the publisher's full-year sales up 47 percent to $1.21 billion, up from nearly $825.82 million the year before. Those figures were also boosted by Max Payne 3, XCOM: Enemy Unknown, and catalog sales of Grand Theft Auto IV and Red Dead Redemption.

However, the publisher posted a net loss of $29.49 million for the campaign. While still in the red, that represented a substantial improvement over the previous fiscal year, when it posted a net loss of $108.82 million.

Beyond its game sales, Take-Two emphasized the success of its digital endeavors. Digital revenues grew 192 percent year-over-year, and accounted for 27 percent of the publisher's non-GAAP sales.

For the fourth quarter, Take-Two posted sales of $299.49 million, up from $148.08 million year-over-year. The company also posted a profit for the fourth quarter, turning around the previous year's $66.84 million loss into a $22.47 million gain.

With Grand Theft Auto V expected later this year, Take-Two is projecting a healthy jump in sales for the current fiscal year, in the range of $1.75 billion to $1.85 billion. It also expects to post a net income per share of $2.05 to $2.30.

8 Comments

Rick Lopez Illustrator, Graphic Designer

1,269 942 0.7
Tomb Raider went on to sell over 4million copies in its first few weeks and it was deemed a failure. What gives?

Posted:A year ago

#1

Adam Campbell Associate Producer, Miniclip Ltd

1,199 1,012 0.8
Tomb Raider went on to sell over 4million copies in its first few weeks and it was deemed a failure. What gives?
This is something I first said a few years ago, but maybe across the industry we need to re-consider the cost of making a 'AAA' title and if the spends involved are necessary to make a good or impressive game, especially if most of them struggle to make a profit unless we see 10 million or so sales.

On a side note, I think this vindicates exclusives to some extent. Though many of us believe that multi-platform is the way to go, there are exclusive, grand production titles on PS3 for example selling 5 million and less but appear to be making profits. Maybe we're looking at a different approach to controlling costs and funding...

Posted:A year ago

#2

Dominic Jakube Student

92 13 0.1
Well Bioshock infinite is remoured to gave cost $100 million to develop plus another $100 mill in marketing and I would assume Tombraider to somewhat simmilar, so $200 mill divided by 5 mill sales means they have to make $40 a sale to break even.
Retail games sell for about $60 in the states, manufacturing,distrobution,platfom licsence fees,retailers profits, steams cut etc mean this is unlikly, hence a loss.

Posted:A year ago

#3

Mike Engle Senior Game Designer, Zynga

17 11 0.6
Seems unsustainable, given this snapshot of recent games. Makes me think that either the market is in a slump (doesn't seem that bad, does it?) or that companies are simply over-spending on games where the best case scenario doesn't earn them enough revenue to be profitable. Seems like you'd either decide to spend a more reasonable amount making your AAA game (knowing what the best-case profits will be) or face bankruptcy.

Posted:A year ago

#4

Private Industry

1,176 182 0.2
I really doubt either Bioshock or Tomb Raider cost 100 million to develop and the same for marketing.

AC is much bigger with 4 or 5 studios working on each game and it looks like they make a profit and more marketing. How much would that game cost to make if Bioshock needed 100 million?

Posted:A year ago

#5

Nicholas Pantazis Senior Editor, VGChartz Ltd

1,020 1,467 1.4
It is unsustainable. The industry needs to move toward more mid-range costs. Not every game will sell like Call of Duty so every game shouldn't be budgeted like Call of Duty. The Japanese publishers understand this much better, and are generally financially healthier. The large Western publishers are over-developing themselves into their graves, as THQ did.

Posted:A year ago

#6

Adam Campbell Associate Producer, Miniclip Ltd

1,199 1,012 0.8
Well Bioshock infinite is remoured to gave cost $100 million to develop plus another $100 mill
Yup and there's the problem.

Posted:A year ago

#7

Jim Webb Executive Editor/Community Director, E-mpire Ltd. Co.

2,282 2,485 1.1
Neither of those $100 million figures are correct.

However, even half of that is still why big games that sell well can fail financially.

Posted:A year ago

#8

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