Take-Two Has 72 Core Games Planned for the Next 5 Years, Though FY 2021 Won’t Have Big Releases
Take-Two closed another strong fiscal year in 2020, as announced in yesterday's report, with net revenue growing 16% and net income growing 21%, thanks mostly to NBA 2K, Red Dead Redemption 2 (over 31 million copies) and Online, Grand Theft Auto V (over 130 million copies) and Online, Borderlands 3, Civilizations VI, and WWE 2K. Private Division's The Outer Worlds also contributed, having sold over 2.5 million units to date.
During the earnings call, Take-Two president Karl Slatoff confirmed a huge content pipeline, which the publisher had previously hinted at. There are 72 'core' games in production across all labels and tentatively scheduled to be released over the next five years. However, the next fiscal year will be 'lighter' than the one that just closed in terms of releases; Take-Two also confirmed a delay for Kerbal Space Program 2, now expected to launch in Fall 2021.
Across our internally owned labels and outside development studio partners we currently have 93 titles planned for release over the next five years through fiscal 2025. Of the 93 titles, 63 are core gaming experiences, including 15 platform extensions of existing titles, 17 are mid-core or arcade style experiences and 13 titles are casual experiences. 47 of these 93 titles are from existing franchises and 46 are from new intellectual properties.
In terms of platforms, 72 of the 93 titles are planned for console PC and/or streaming including seven that will also be available on mobile and 21 are planned specifically for mobile.
With respect to business models 67 of the 93 are games that are required to be purchased and 26 are free to play. Note that these figures reflect a snapshot of our current pipeline as it stands today. It is likely that some of these titles will not be developed through completion, and we will undoubtedly be adding new titles to our slate.
As Strauss mentioned, fiscal 2021 will be a light new release here. However, given our strong pipeline and expectation for increasing recurrent consumer spending, we expect sequential growth to resume in fiscal 2022.
It should be noted that the Take-Two president later clarified how 'core' does not quite equal the traditional definition of 'triple-A'.
There's a bit of an art to it, but how we define what a core experience is does not necessarily equate to the largest investments that we make, though they tend to be bigger investments because core games tend to be -- bigger games are more engaging, targeting more core gamers but it doesn't necessarily mean that. As we said before, there is a lot of new IPs. Generally speaking, you can really expect the new IP front to be much riskier. And generally speaking, our development budgets are going to be lower for new IP.
So there'll be a wide range of investments across all of our types of releases we're doing including core games, but the core games are really those looking for engaging experiences where you could play anywhere from five minutes to five hours at a time. AAA is probably the wrong way to commentate it because that does kind of take investment into account and that's not specifically what we're talking about here.
It'll take some time before we get to see many of those 'core' Take-Two games, then, but stay tuned and we'll keep you up to date with any rumors and leaks in the meantime.
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