TTWO stock has dropped over 35% since January, owing to a drop in consumer demand throughout the IT sector and a poor quarter due to its costly purchase of Zynga.
However, while the continuing console battles have spurred Microsoft and Sony’s purchases, Take-Two Interactive’s (TTWO ) $12.7 billion acquisition of mobile gaming giant Zynga has allowed it to broaden its products and enter a profitable industry.
Market Analysis of TTWO Stock
With the success of its two largest publishers, Rockstar Games and 2K, Take-Two has emerged as one of the industry’s top corporations. These studios are in charge of producing some of the successful brands in the world, including Grand Theft Auto (GTA), Red Dead Redemption, and NBA 2K. On the other hand, Take-Two owes its market position largely to the enormous success of its 2013 game, GTA V.
The game has permanently altered the business, being the quickest entertainment product to generate a billion dollars. Then, in 2018, GTA V became the most commercially successful media game of all time, grossing $6 billion. Minecraft, the best-selling game of all time in terms of copies sold, has hit half that amount at $3 billion.
Almost a decade after its initial release, Take-Two generates $911 million each year from GTA V via additional content, re-releases on several generations of devices, and microtransactions. Furthermore, the firm is presently working on the next version of the GTA series, which will most certainly bring a big increase in income when it is released in the coming years.
Furthermore, Take-Two’s purchase of Zynga has brought numerous successful mobile games into its fold, with its top ten titles generating a combined $808.28 billion by 2021. Take-Two was already a significant industry force before acquiring Zynga, but the acquisition has raised its company and made it more competitive against businesses like Electronic Arts and Activision Blizzard.
Market expansion is promising.
Despite a downturn in consumer demand throughout the IT sector, researchers predict that the games business will expand 36.2% from $235.7 billion in 2022 to $321.1 billion in 2026, a 9% annual increase. Gaming is becoming a more popular habit, with an estimated three billion gamers globally in 2021, one of the largest entertainment industries worldwide markets.
Furthermore, the emergence of game subscriptions, streaming, and in-game purchases have created new income streams outside of game sales.
Is today the greatest moment to invest in Take-Two Stock?
Take-stock Two’s dropped 9% in the previous month due to a poor quarter and leaked video from their future GTA game. However, the company’s long-term prospects are outstanding. On Oct. 6, Goldman Sachs upped its rating from neutral to buy, citing the company’s potential for patient investors despite near-term challenges.
Take-Two stock is a terrific investment for long-term investors, with a strong content library that has shown the capacity to produce income from a single game for over a decade and a promising move into mobile gaming.
Featured Image – Megapixl © Timonschneider
Author Okoro Chinedu 
