Take-Two Interactive Continues to Climb on Red Dead Redemption Sales
Rockstar Games — makers of the blockbuster Grand Theft Auto franchise — hit another home run for Take-Two Interactive (Nasdaq: TTWO). The hottest game on the planet right now, Red Dead Redemption, has sold ~5 million units and helped TTWO raise 2010 guidance for revenue to $880 – $980 million from $725 – $925 million, and for EPS to $(0.10) – $(0.30) from $(0.40) – $(0.60).
Despite the awesome sales of Red Dead, Take-Two remains plagued by management issues. Franchise game Max Payne 3 was delayed from Q4 until 2011. The company also lives in a perpetual cycle of long dry spells interrupted by blockbuster hits. Although exciting for gamers, this model is riskier for investors.
TTWO is up over 4% pre-market.
Disclosure: No positions.
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