In-game purchases accounted for 65% of Take-Two’s annual revenue of $3.5 billion

Take-Two has shared its financial report for the year ended March 31, 2022. The company reached $3.5 billion in revenue, with the bulk of it coming from microtransactions.

Key takeaways from the report

• The company reported net revenue of $3.5 billion for FY2022, which is down 4% year-over-year.
• Net income was $418 million, which is down 29% year-over-year.
• In-game purchases, or recurrent consumer spending, accounted for 65% of Take-Two’s annual revenue, which is up 6% year-over-year.
• The company expects to reach net revenue between $3.67 billion and $3.77 billion in fiscal year 2023 ending March 31, 2023.
• Take-Two CEO Strauss Zelnick noted that the company will continue to rely mostly on organic growth, despite its pending acquisition of Zynga.
• “Over the 15-year history that this management team has been here at Take-Two, the bulk of our growth, the bulk of our success has been organically driven,” he said. “And I think that will continue going forward, and we have a great opportunity because combined with Zynga we have the best collection of owned intellectual property for PC and console and mobile in the business.”

Game sales

• Tiny Tina’s Wonderlands and WWE 2K22 outperformed the company’s expectations, although no specific numbers have been disclosed.
• Grand Theft Auto V surpassed 165 million units sold globally, with the player base for GTA Online growing 8% and 74% compared to the fourth quarter of FY2020 and FY2019, respectively.
• The GTA series has already sold over 375 million units globally.
• Red Dead Redemption 2 reached more than 44 million units sold, exceeding Take-Two’s expectations. The game sold around 1 million copies during the quarter, with the whole series selling over 67 million units worldwide.
• The NBA 2K series has reached more than 123 million units sold globally.
• The BioShock series has sold more than 39 million units worldwide.
• The Borderlands franchise has reached over 75 million units sold globally.
• WWE SuperCard has been downloaded over 26 million times, remaining the company’s highest-grossing mobile title.
• NBA 2K Online is the number one online PC sports game in China with almost 57 million registered users.

Release pipeline

• Take-Two has 18 planned games in its pipeline for fiscal year 2023 (ending March 31, 2023).
• Six of them are the so-called “immersive core titles,” big games with the most hours of content. The list includes new installments in the NBA 2K, WWE 2K, and PGA Tour series, as well as The Quarry, Marvel’s Midnight Suns, and Kerbal Space Program 2.
• The company plans to release eight mobile titles, including four games based on new IPs.
• Overall, Take-Two expects to launch 51 games throughout FY2024 and FY2025, including 18 immersive core titles, 10 independent games, and 12 free-to-play mobile titles.