Take-Two expects to spend $89 million on advertising in the course of the 12-month interval ending March 31, 2024. That’s greater than twice the advertising price range for every other fiscal yr over the following half-decade, according to the company’s recent 10-K SEC filing. Why is Take-Two planning to spend that rather more on advertising in fiscal 2024? Probably the most doubtless explanations is that’s when the writer expects to launch Grand Theft Auto VI, in accordance with analyst Jeff Cohen of funding agency Stephens.
Annually, Take-Two recordsdata a 10-Ok with quite a few monetary particulars, together with its plans for advertising spend for annually for the following 5 years. In its earlier 10-Ok, Take-Two notified traders of a spike in advertising prices for fiscal 2023. However that spending has now shifted to fiscal 2024. This motion in spending doubtless displays developer Rockstar Games’ present plans for the discharge of Grand Theft Auto VI.
Cohen factors out that this advertising metric beforehand predicted different Rockstar releases.
“We aren’t positive how a lot we needs to be studying into this shift, however we’d word that this disclosure precisely predicted the launch of Purple Useless Redemption 2 previous to that recreation’s announcement,” Cohen wrote in a word to traders. “[Take-Two management] has spoken very confidently concerning the pipeline over the following 5 years and present stay providers execution has been glorious. Nevertheless, the timing of the following Grand Theft Auto stays top-of-mind for traders, notably with the inventory close to all-time-highs.”
If Cohen is true, then Rockstar presently plans to launch GTA VI between April 2023 and March 2024. In fact, that might change if the sport encounters delays. And with the continuing success of GTA On-line, Grand Theft Auto V’s on-line part that makes tens of millions of microtransactions, Rockstar isn’t in a rush.
Does Grand Theft Auto VI in 2023 make sense?
Grand Theft Auto VI in 2023 may appear distant. In any case, that’s 10 years after Grand Theft Auto V launched in 2013. However that timing is probably going on account of various components.
First, since Grand Theft Auto VI isn’t prepared for current-gen, Rockstar will need to wait till the next-gen consoles are extra nicely established. The studio doesn’t need to depart cash on the desk by promoting to 25 million folks on next-gen in 2022 when it might attain an even bigger buyer base a yr later as people purchase extra consoles.
Rockstar can also be in no rush to exchange Grand Theft Auto V. The sport continues to promote month-after-month, and GTA On-line brings in a ton of income. A GTA VI must seamlessly choose up that momentum. So it’s necessary that Rockstar will get the sport proper. Much more essential is determining the way to transition the GTA On-line viewers to any potential followup in GTA VI.
Arising with that plan and executing on it is going to take time. And a 2023 launch offers loads of runway to determine it out.