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Company presentation1
- 2. Problem • Fun • Popular • Multi- platform
- 3. Products •NBA 2K •Red Dead Redemption •Grand Theft Auto •Disintegration •Dragon City
- 4. 14-year-old just starting high school Casual gamer Owns a PS4, has PS5 on his Christmas Wishlist Loves to play with his high school friends after school Wants a variety of games JimBob
- 5. Financials
- 7. Business Model: Publicly Traded Company • Action& adventure • Sports • Roleplay • Family • Independent developers • Mobile
- 8. 1993 Take-Two founded by Ryan Brant 1997 IPO 1998 Acquired BMG Interactive/ Creation of Rockstar Games 2001 Brant and some CFOs manipulate sales numbers 2005 Establish 2K 2006 Brant leaves the company 2007 Enter Strauss Zelnick 2013 GTA V(online)/ Digital Downloads
- 9. Leadership
- 10. What’s Hot?
- 11. Secret Sauce • Digital Downloads • Franchises • Deals • Esports
- 12. Competition Company MPT(s) MTP(s) Sales (Millions) Market Cap (Billions) Take-Two Interactive Software Inc. Grand Theft Auto 225 12.7 Electronic Arts Inc. FIFA 260 31.6 Activision Blizzard Inc. Call of Duty 250 47.3 Ubisoft Entertainment Assassin’s Creed 140 8.7 *MPT = Most Popular Title
- 15. Questions?
Editor's Notes
- Take-two interactive is a video game holding company, which means they own other companies that actually produce the games people play. They own three labels 2K,Rockstar, Private Division. 2K and Rockstar focus on consoles and computers games, while Private Division focuses on mobile games. The reason why I choose Take-Two is because they own 2K, which was founded in 2005, and produce a series called NBA 2K, which I am a fan of. And now they have become the epitome of basketball-based video games, which was not always the case. Up until maybe 2011, NBA live was the top dog, but suddenly 2K took over, so I wanted to investigate that.
- Take-two, like many other video game publishers, face these core similar problems. They need to create games that appeal to people and become popular enough, so that people continue to play those games. They also need to makes these games multi-platformed, so available for consoles, like the xbox, computers, and as well as their phones.
- Here we have JimBob, who is just starting out high school, he’s been a casual gamer his whole life. He finds it fun and it keeps him from being bored. He doesn’t have many after school activities, so his number one activity atm is beating his friends in NBA 2K’s online gameplay. He currently owns a PS4 and is behaving good so that Santa brings him a PS5 during Christmas. He not only enjoys playing NBA 2K, but a variety of different games that he could again beat his friends in.
- Here we have take-2’s net income since the time they were created. With any company you’re going to have your ups and your downs, but as you can see the past couple of years they have been up. This company is very profitable as they are always trying to create games that entice the audience, but at the same time they have created games that have become staples in the gaming community that they can rely on to make them good money. The reason why we can see these dips and increases is due to underlying factors such as new consoles coming out, and people wanting to rebuy their cherished games for their new console.
- And a big part of that is because of their sales in console games. Last year was a big year for take two as you can see from the diagram on the left. They made tons of money and ended the year with 1.57B dollars. Roughly 85% of the income they made in 2019 came console gamers, and the rest was from computer and mobile games, so if they can’t produce any console games that really entice the buyers, they’re in trouble. Their target audience varies as they have content that’s rated E for everyone as well as rate M for mature. Personally, I feel like the NBA 2k series has gotten a little more childish to appeal to younger kids, but the age range that plays 2K is usually around 15 to 35.
- Take 2 is a publicly traded company. Take-two interactive is broken down into its 4 main labels where each label focuses on specific thing. 2K is actually split up further into 2K sports, 2K play, and 2K games, but 2K sports is where they really thrive, so their main goal is to make super-realistic sports games. Private division brings games from top independent developers forward, aka Indie games. Rockstar focuses on action and adventure, with GTA being their main product, and social point focusing on the mobile aspect. They also make money downloadable content, online gaming, and microtransactions.
- founded in 93 by brant went public in 97 b/c he wanted to fund purchases -BMG interactive, BMG’s video game division, was purchased by take-2 with 16% of take2 company stock in 98 -huge b/c this deal included the first title for GTA, this also would lead to take two to create Rockstar Games who’s purpose was to make more games like GTA -GTA 2 comes out in 98 -GTA 3 comes out in 01 2001 one is where it gets spicy -they were manipulating sales numbers due to stock market pressure 02-05 2 more GTAs come out -The Board decided they needed a new CEO, so they choose Kelly sumner because they saw him as a better leader. Brant retained his title as chairman and director however -they were making steady progress, but nothing remarkable even though gta was well established The next 3 years from 2005 were very important to the company 05 they establish 2K by buying the rights from SEGA for sports games 06 Brant leaves the company due to the lawsuits from the FCC 07 he pleads guilty and left the company -Enter Strauss Zelnick who becomes the new CEO, FCC investigation chapter closed, founder left. Now this guy did a great job of turning this company around, he was a gifted a leader and corporate manager. The last major event is the release of GTA online. Around 2013 online gameplay started taking off and so did digital downloads, this is important because take-two and companies alike no longer have to account for the production costs of physical disks and ensuring there’s the right amount and they get the stores in time to be shelved. Following this in the following several years Take-two’s stock rose from $16 to $150 a share and is now currently worth $115 a share.
- Strauss Zelnick was really the driving force behind the bounce back of take-two interactive. He preached these main values. He knew what he was good at and would focus on only that. He never meddled in the creative process, but would hire and put people in place to deliver the products and keep the company moving forward. The second to last bullet point was the core reason why take two was able to bounce back in 2007, at lot of the people left in the wake of Brant leaving were demoralized, but Zelnick’s ability to rally them made a big difference.
- The Grand Theft Auto series is hot, with the next game GTA 6’s release to be in late 2020. The NBA 2K series has been hot. They just released NBA 2K20 in October, and 2K21 will be released next October. Red dead redemption 2 which was released in October 2018. The reason why these games are thriving is because of their ability to really immerse you in the gameplay almost as if you were actually in the game, as the first picture depicts this. Ever since NBA 2K15, players can use a camera to create a player in the game that looks just like them, really honing in on the immersion factor.
- Take-two has gotta make sure their games are available for download off of online stores because it saves them time and money and allows people to buy games from the comfort of their homes. They’ve got two dominant franchises in the video game industry with GTA and 2K. Remembering that they are a console heavy company, they make deals with xbox and ps4 to make games that are exclusively available to console players only. Gaming has become such an integral part of society and an another way Take-two takes advantage of that is be making their games by launching Esports leagues in which players can compete for money and awards. Take-two and 2K launched the NBA 2K league in 2017. The cool thing is that each team in the NBA 2K league will be represented by an actual NBA Franchise which attracts more people and currently 21 NBA teams participate in this league.
- EA actually tried to take over take-two in 2008 for 25 dollars/share, or roughly 2B dollars. Luckily this didn’t happen as there would no longer would competition for sports games as EA would own both Madden and 2K would could logically lead us to believe that the games they would be put on in subsequent years probably wouldn’t be as good if there was competition. All these companies are really neck and neck in terms of games sold and even though currently Take-two’s market cap is much smaller than EA’s and Activision’s we need to take into account that it is a younger company and its making great strides forward as just 4 years ago their market cap was 3.8B.
- My prediction for Take-two is success. Courtesy of Robinhood we can see here that their stocks are rising and with the continuation of their franchises and the with the arrival of the PS5 and Xbox series X that are confirmed to be backwards compatible at least to the last model, take two is guaranteed to see some success. Here’s a little stonks for you guys