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Take-Two financials: XCOM slips to FY14, Max ships 3M

Tuesday, 22nd May 2012 21:12 GMT By Stephany Nunneley

Take-Two has released its results for Q4 and year end 2012, announcing Max Payne 3 has sold-in nearly 3 million units,  as well as a delay into FY14 for the XCOM shooter reboot.

T2 Q4 & FY12 at a glance

Max Payne 3 sells-in 3 million on consoles. PC release hitting June 1.

2K Marin’s XCOM shooter delayed into fiscal 2014.

Borderlands sells-in nearly 6 million units; BioShock franchise sells close to 9.5 million units.

Net revenue for FY 12 was $825.8 million, with digital accounting for 13% of revenue. Losses came in at $107.7 million.

Q4 net revenue was $148.1 million, with digital accounting for 19% of revenue. Losses were $66 million.

Max Payne 3 sold-in approximately 3 million units during its initial launch on consoles, according to the firm, which also reiterated the June 1 release of the game on PC.  Max 3 is expected to be one of the most “significant” releases of FY13, and the firm also touched upon the DLC line-up for the game, which continues into the fall.

The XCOM shooter reboot, which is in development at 2K Marin, has been delayed into FY14, according to T2. Announced in 2010, the title was slated for release in 2011 before being delayed into 2012 prior to today’s announcement.

NBA 2K12 was the highest rated title in the history of 2K Sports with an average Metacritic score of 90 and for the second year in a row, sold-in over 5 million units.

The BioShock franchise has sold-in over 9.5 million units to date, and Borderlands has sold-in 6 million copies.

The firm reiterated that GTA V is in full development, but would not be drawn on a release date by investors.

For the year ending March 31, 2012, net revenue was $825.8 million, compared to $1,136.9 million for the same period the prior year. Losses came in at $107.7 million, compared to $53.8 million in losses the prior year.

The strongest contributors to revenue in FY12 were: L.A. Noire, NBA 2K12, the Grand Theft Auto franchise, Duke Nukem Forever and Red Dead Redemption.

Digitally delivered content accounted for 13% of net revenue, compared with 9% in FY11, and was primarily driven by the Grand Theft Auto franchise, Red Dead Redemption, the Civilization franchise, Borderlands and L.A. Noire.

For Q4 net revenue was $148.1 million compared to $182.3 million year-over-year, which benefited from the post-launch performance of Red Dead Redemption.

Q4 losses came in at $66 million, compared to $22.4 million for the same period the year prior.

The strongest contributors to net revenue in Q4 were new releases including: NBA 2K12, MLB 2K12 and The Darkness II, as well as catalog sales led by the Grand Theft Auto franchise and Red Dead Redemption.

Digitally content accounted for 19% of revenue, compared to 15% in Q4 2011, which was driven by offerings from the Grand Theft Auto franchise, the Civilization franchise, Red Dead Redemption, Borderlands, NBA 2K12 and L.A. Noire.

“Fiscal 2012 was a year of creative, operational and strategic achievement by our Company,” said CEO and chairman Strauss Zelnick. “We delivered groundbreaking titles, including L.A. Noire and NBA 2K12, which set new standards for excellence; grew our revenue from digitally delivered content and mobile offerings; made substantial progress on our online gaming initiatives; and bolstered our already strong liquidity through a convertible notes offering.

“While our financial results were disappointing, the decisions we made position Take-Two for growth and profitability both this year and over the long-term.

“Fiscal 2013 kicked off with the successful launch of Max Payne 3, which received outstanding reviews and promises to be another hit for Rockstar Games. We have a fantastic lineup of upcoming releases for the balance of the year and the strongest development pipeline in the company’s history.”

During the call to investors, Zelnick said he expects Take-Two to be “at the front of the line,” with next-gen releases, but wouldn’t comment on hardware as such information is up to the console developers.

The firm’s strategy, he said, is to release strong games when they are ready. When the transition occurs it will be “challenging” for all development and publishing firms, and while T2 is being “thoughtful about the future,” there’s a lot of opportunity to create new IP and expand on current franchises with next-gen as long as the content is fresh, added COO Karl Slatoff.

“Our mission is to serve consumers where they want and how they want it,” he said.

Take-Two is also bullish on tablets, and think the tech makes for a great platform. That being said, there’s still plenty of work to be done on the business model without counting out the consoles.

Consoles owe success to being much better platforms than PC, said Zelnick, with the later a much better platform than it was previously, due to the release of better processors. When the processing power is there for tablets, the consumer “will see much better games,” but only once the business model is streamlined, he said.

Reiterating its upcoming line-up, the firm torched upon the following release dates:

  • XCOM: Enemy Unknown – October 9 in North America and October 12 internationally.
  • BioShock Infinite is now planned for launch on February 26, 2013.
  • Borderlands 2 – September 18 in North America and September 21 internationally.
  • Spec Ops: The Line – June 26 in North America and June 29 internationally.
  • Sid Meiers Civilization V: Gods & Kings – June 19 in North America and June 22 internationally.
  • XCOM – releases during fiscal year 2014.
  • NBA 2K13 – October 2012
  • XCOM: Enemy Unknown – October 2012

For fiscal year 2013, the firm expects revenues for Q1, ending June 30, 2012, to hit between $225 to $275 million, and $1.75 to $1.85 billion in revenue for the full year, ending March 31, 2013.

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23 Comments

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  1. datass

    Gta V?

    #1 2 years ago
  2. Pytox

    @1 Looking at that line-up i really expect a May 2013 release date

    #2 2 years ago
  3. Patrick Garratt

    Hmm. We’ll see. Can’t even guess at this point.

    #3 2 years ago
  4. AHA-Lambda

    Well if it was this year, it would’ve been mentioned i think.

    #4 2 years ago
  5. Patrick Garratt

    If it was going to be in this financial year, they’d surely have to tell investors? We’re halfway through the calendar year now.

    #5 2 years ago
  6. AHA-Lambda

    Yeah GTA 5 is def going to be may 2013 then

    Also are Take-Two trying to lose money on XCOM? That thing must be a massive money pit by now given its development time.

    #6 2 years ago
  7. Stephany Nunneley

    They have yet to address GTA V, and most investors are asking about inter-connected TVs and tablets. They did ask the execs about next-gen, but all they really said was “yeah, we’ll release stuff” but other than that “no comment.” :/

    #7 2 years ago
  8. DSB

    They should really just dump XCOM at this point. It was a pretty bad idea from the beginning.

    #8 2 years ago
  9. Moonwalker1982

    GTA V for this year is still possible but i highly doubt it. Look at the coverage so far, nothing so far this year. But they did kinda announce GTA V a bit too early, jesus…if it’s really a 2013 title, what a long wait :(

    #9 2 years ago
  10. AHA-Lambda

    BTW, are they pleased with the results for Max Payne 3? They were saying they needed 4 million units just to break even with it.

    @9 – we’ve waited longer for worse games, hell, look at XCOM.

    #10 2 years ago
  11. Maximum Payne

    @10 There’s been like one week on market + without PC version.
    Those 4 million was just analysts expectation.

    #11 2 years ago
  12. Phoenixblight

    @10

    That is within the first week and since there really is nothing being sold this summer I see a lot of people picking it up.

    #12 2 years ago
  13. Moonwalker1982

    @ 10

    Yeah but not for a GTA game man, and i really don’t hope it’s gonna take much longer than april-may 2013 :(

    #13 2 years ago
  14. Stephany Nunneley

    @10 Yes they are pleased, and expect it to be one of the most significant releases for the fiscal year.

    #14 2 years ago
  15. AHA-Lambda

    @14 – oh, ok then :)

    #15 2 years ago
  16. Stephany Nunneley

    Okay. I think the post is clean and ready for prime time. I am going to go off into a corner and eat. ;)

    We’ll get exact quotes on this when the transcript arrives tomorrow, and then we can cull my horrible paraphrasing out of it.

    #16 2 years ago
  17. The_Red

    What the FUUUUUUUUCK!? X-Com moved to fiscal 2014!? Seriously? This was revealed two years before the other X-Com and now has slipped into 2014!!!!!!!!!!????

    #17 2 years ago
  18. diego-rbb-93

    Nobody seems to see that probably X-COM its going next-gen?

    #18 2 years ago
  19. Lewis247

    Hmmm, I take it the X-COM we have seen so far is probably early enough in development to probably slip into a next gen release.

    Seriously though, I had to read it a few times to sink in, 2014… Really!?

    #19 2 years ago
  20. Phoenixblight

    No X com won’t be going to next Gen if anything it will just be thrown on current gen as the next gens are announced and eventually released. They are making the game based on current specs so even if it will go on next gen it will be using those specs and will look lackluster compared to other next gen games that are specifically made for the system.

    #20 2 years ago
  21. stealth

    “net revenue was $825.8 million, compared to $1,136.9 million for the same period the prior year. Losses came in at $107.7 million, compared to $53.8 million in losses the prior year.”

    this is all that matter, losses

    its because of lack of titles

    #21 2 years ago
  22. 3rikko

    @17 Fiscal 2014 goes from April 1, 2013 to March 31, 2014

    #22 2 years ago
  23. Moonwalker1982

    Interesting thing i found on a forum, and it could be related to GTA V:

    Here’s where things get interesting: During this afternoon’s investor call, CEO Strauss Zelnick reiterated a point from earlier in the call that there are “titles yet to be announced for fiscal 2013.” This is significant because the company expects revenues of $1.75 – $1.85 billion for the fiscal year ending next March. Look back at that blockbuster Red Dead Redemption year, and note that revenues reached $1.14 billion. So, what’s the deal?

    Officially, at this time, Take-Two plans to launch Borderlands 2 in September, NBA 2K13 and XCOM: Enemy Unknown in October and, finally, BioShock: Infinite in February. Although any one of those could be a runaway hit, there’s still $600-$700 million missing over that impressive Red Dead year to hit the projection. Either Grand Theft Auto 5 is secretly on the docket for this year or Take-Two is expecting blockbusters from more than one of the announced games.

    and…

    Xbox Support
    ‏@XboxSupport1
    Follow
    @TheRealDubster The next title, Grand Theft Auto 5, will be out later this year ^BB

    #23 2 years ago