Take-Two Interactive Software, Inc. (TTWO · NASDAQ)
The Studio Behind Grand Theft Auto
Take-Two makes and sells video games, including Grand Theft Auto and NBA 2K, and earns money both from the initial purchase and from years of add-on content players buy afterwards.
Bull case for Take-Two Interactive Software, Inc.
Owns Grand Theft Auto outright
Take-Two owns its biggest series, so it keeps the economics rather than paying a licence.
Players keep paying after purchase
Add-on content and in-game spending now supply the majority of the company's bookings.
Phone games spread the risk
Zynga's mobile titles earn money continuously, softening the gaps between big console launches.
Bear case for Take-Two Interactive Software, Inc.
One game carries the company
A poorly received Grand Theft Auto sequel would hurt results far more than any other title.
Release dates slip regularly
Big games take years and delays push revenue into later periods while costs continue.
Platform owners take a cut
Apple, Google, Sony and Microsoft control distribution and keep a share of every sale.