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Take-Two The Latest Company To Evidence Huge Digital Gains
In its first quarter 2014 earnings statement, Take-Two disclosed significant gains in its digital offerings. As we've seen from other publishers, direct distribution is a rapidly growing majority segment of the market.
Digital content accounted for 52 percent of non-GAAP net revenue, with an increase of 128 percent year-over-year. Borderlands 2 add-on content, including the season pass, was the single largest contributor to Take-Two's revenue this quarter.
Zelnick was clear to tell investors that add-on content "doesn't work for every title in the market, it doesn't even work for all of our titles." However, when it does work, it clear works very well.
Our Take
We've heard from EA and Ubisoft about how important digital distribution is becoming. Now we're hearing an echo from Take-Two. Grand Theft Auto V, The Bureau, and WWE 2K14 will all have downloadable content. I'm curious which of Take-Two's titles aren't good fits, because I can't recall one recently that has eschewed DLC.
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