Shares in key US games companies rose yesterday as the main markets saw moderate gains across the day, with Take-Two benefiting to the tune of 7.2 per cent as Pacific Crest analyst Evan Wilson bumped up his recommendation on the company to Outperform.
According to Barron's, Wilson expects sales of Red Dead Redemption to hit 2.5 million units on its way to becoming a key title this year.
"Talks with reviewers and initial retail checks show quality and pre-orders are better than expected," he said. "It is setting up to be one of the best-selling and best-reviewed games of the first half of 2010 after the franchise got a choppy start with Red Dead Revolver in 2004."
Take-Two was the only major publisher to outperform the markets, finishing the day on $10.54, with the Dow Jones up 3.9 per cent and NASDAQ up 4.8 per cent after a deal was signed to tackle the Greek-led European debt crisis.
Retailer Best Buy was also a big gainer, up 6.1 per cent to $43.55, while Electronic Arts was up 3.5 per cent to $18.24, THQ jumped 3.3 per cent to $6.57 and Activision Blizzard rose 3.1% to $10.89.