In the modern world of gaming, buying a video game is just an opening for bigger things as the companies now tend to make more money through additional purchasable content. As the highly anticipated Red Dead Redemption 2 is getting closer to its launch let’s take a look at how the game could shape things up for its holding company, Take-Two Interactive’s stocks. Red Dead Redemption 2 can potentially take the revenues of Take-Two to incredible heights.
According to the expert opinion of Michael Olson at the Piper Jaffray, Red Dead Redemption 2 could lift the Earnings Per-Share of Take-Two Interactive by one dollar each which is projected at $4.84 at this time. Moreover, after looking at it in an optimistic way, the game is being backed by Olson to harvest about $500 million which presently is proposed to have $250 million for the fiscal revenue of 2020.
While Red Dead Redemption 2 is taken into consideration here just to put things into perspective for you, other renowned video game producers like Electronic Arts and Activision Blizzard are looking at generating chunks of revenue from the users buying more and more online content in their upcoming titles as well. However, the online multiplayer platform of the Western-themed video game is expected to launch somewhere around November. Rockstar Games explained the reasoning behind this release time in an interview with IGN:
“We see them essentially as separate products that will grow and evolve independently of each other. We love story-based, single-player games and they are the foundation of everything we do. Red Dead Redemption 2 is an absolutely massive story-based game that we hope people will be lost in for a long time and we want people to experience everything that world has to offer before we build on that with the Online experience. Not to mention, playing through the story and getting to know the controls and mechanics of the game is the best way to get ready for playing inside the world of Red Dead Online.”
Michael figures that in just one year the online in-game content sold can make up for 20% of the full game sales. This means that if a game makes $100 million from just selling its copies it also has the potential to make $20 million from online content in a year. Later on, Olson found the projections about Red Dead Redemption 2 to be a lot like their all-time greatest hit, GTA V’s outcome:
“Red Dead Online does not have the chance to perform well without a large installed base of Red Dead units in which to sell digital content, so unit sales of the core game are critical,” he wrote. “But the success of GTA Online has shown us that recurrent consumer spend generated by ‘Online’ components of these games can be a long-term driver of higher margin and higher visibility digital revenue.”
Red Dead Redemption is clearly going to make the gaming community go wild with its launch as the game even increased the market share of its holding company by 21% just in 2018. The game is only ever going to increase the stock of Take-Two with P.R. activities like gracing the PlayStation Magazine cover which featured the preview for the game.