Take-Two Interactive Software (NASDAQ:TTWO) is a New York-based video game publisher which owns both the Rockstar Games and 2K labels. On October 26 the former released Red Dead Redemption 2, the much-anticipated sequel to the 2010 hit.
Rockstar announced that RDR2 has generated over $725 million in worldwide sales only three days after its October 26 launch. This represents the biggest opening weekend in the history of entertainment. The news caused Take-Two Interactive shares to jump 11% on October 30. The stock is still down 10% month-over-month as tech stocks have taken a beating in October.
Rockstar also revealed that RDR2 was the most pre-ordered game in history on the PlayStation Network (PSN). The game has received rave reviews in the days since its release, which should only boost its staying power going forward.
Rockstar is no stranger to generating huge hits. Grand Theft Auto V was released in September 2013 and this year it became the most profitable entertainment product of all time. GTA V has generated over 90 million sales worldwide since its 2013 release, and over $6 billion in revenue. Take-Two has continued to rake in revenue from GTA V’s multiplayer. Red Dead Online is expected to launch sometime in November of this year.
Take-Two is a good bet to see a huge boost from RDR2 in future earnings. Its early success puts it on pace to contend with GTA V as the most profitable entertainment product in history, especially if its multiplayer takes off with users.
