What Happened to the Rockstar Games Stock?November 16, 2021
Over the past two decades, the video game sector has gone from strength to strength, following the emergence and unprecedented growth of online gaming modes.
The world of gaming has been totally transformed, especially since the advent of Esports, where thousands of players now earn a full-time salary purely from playing and streaming video games over the internet.
As a result of this, the demand for new games has skyrocketed, with developers under more pressure than ever to create the next cutting-edge release, within an ever-growing competitive marketplace.
In this article, we will be taking a detailed look at Rockstar Games shares, with a particular focus Take-Two Interactive Softw. stock (Nasdaq: TTWO), the parent company.
What is Rockstar Games?
Rockstar Games is an American video game developer and publisher, currently based in New York. The company was founded in December 1998, and is a development division of Take-Two Interactive, which also owns major publishing label 2K Games.
Since its establishment, the company has been prolific in the video game industry, launching a total of 55 games to date. The studios associated with the company have also produced or co-produced five feature-length movies, including the hit British sports film The Football Factory in 2004.
The company is best known for its highly successful franchise of Grand Theft Auto (GTA) games, which has so far sold a staggering 350 million copies. The GTA series has skyrocketed the revenue of the company, with the GTA V edition alone selling an impressive 150 million units.
Games Shares – The GTA Effect
The developer has produced many successful gaming series, including Max Payne, Midnight Club, Manhunt, and Red Dead Redemption. The company has also been responsible for hit titles such as Bully and L.A. Noire, which have been enjoyed by millions.
However, it is without a doubt that the 19-edition (and counting) GTA series has defined the fortunes of the game developer, due to its staggering sales record and ongoing mass appeal. The action-adventure open-world shooter and driving games have become something of a cultural phenomenon, which rightly holds its place in the history of computer games.
It has not been without controversy, with the series being the target of much criticism over the years, particularly in relation to the way it promotes graphic violence and criminality, with some critics pointing towards a link with the frequency of mass shootings in America.
Despite this, the sales figures speak for themselves, which in turn has driven the value of the company up significantly since the first edition, entitled Grand Theft Auto, was released back in 1997.
Rockstar Games Shares – A Brief History
In terms of Rockstar Games shares, the price of the Take-Two Interactive Softw. the stock has been on a near-continuous upward trend since 2015, reaching its all-time high closing price on February, 8th 2021, ending the day at $213.34.
Meanwhile, the 52-week high stock price is $214.91, with the 52-week low rate currently standing at $144.58. At the time of writing, the stock price sits at $185.15, which represents a difference of 28 percent on the 52-week low figure.
In the company’s most recent quarterly results, the Take-Two Interactive Softw. stock received a boost, following the posting of strong results for Q2 of the 2022 fiscal year. It reported a two percent net revenue increase to $858.2 million, compared to the $841.1 million from last year’s fiscal second quarter.
Future Outlook – Is TTWO a Good Stock to Buy?
It is set to be an extremely busy few years for the parent company of Rockstar Games and 2K Games. In a recent call with investors, company bosses revealed a plan to release 93 games over the next five years, made up of 63 “core-gaming experiences’, 17 “mid-core arcade-style” games, and 13 “casual” games.
As has been the case in the past with previous releases, the GTA franchise is the main topic being discussed from fans and gaming insiders alike. The online rumor mill has at times gone into overdrive about the potential latest edition to the series, GTA VI, although there is yet to be an official announcement by the developer about this.
It is something to be watched very closely, as any news or confirmation of a GTA VI will have a big effect on the price of the Take-Two Interactive Softw. stock, with bosses hoping it can emulate the runaway success of the previous incarnation of the series.
In 2013, GTA V broke industry sales records, becoming the fastest-selling entertainment product in history. It proved to be a major money-spinner, earning $800 million in its first day and $1 billion in its first three days.
With such a productive period of gaming development ahead, the question asked by investors will be is TTWO a good stock to buy? The answer is that the future looks bright for Take-Two Interactive. While most of the attention will be on the latest entry in Rockstar Games’ signature series, titles from 2K Games are also likely to be hugely popular, so investors will be wise to keep track of Take-Two Interactive Softw. Stock going forwards.
Trading incurs a high level of risk and can result in the loss of all your capital.