The video game industry right now is, well, kind of at a crossroads. It has been just over four years since the latest console generation emerged. Given that the typical console generation runs about five to seven years or so, there may be some big developments coming up. But right now, most are looking to Take-Two Interactive (TTWO) to inject new life into this generation. Investors are skeptical, and Take-Two shares dropped fractionally in Friday afternoon’s trading.
Certainly, Take-Two has a big potential win coming with Grand Theft Auto 6. It is, after all, one of the most hotly anticipated games of the last several years, and other studios were even looking to shuffle some of their own release dates to better ensure they do not compete with this powerhouse in the field.
But Take-Two is not making that easy, as the game still does not have a firm release date. And, even if Take-Two manages to live up to huge expectations, the impact of that on the broader industry will likely be muted. And in some cases, it may be reduced for this year, if nothing else. Electronic Arts (EA) planned to release the sequel to Battlefield, the first such sequel since 2021, but that may find itself delayed to, again, not compete with Grand Theft Auto 6.
Cluttering the Scene
Certainly, everyone is paying attention to Grand Theft Auto 6 right now, but Take-Two will not be quietly releasing and going away. It already has plans for a follow-up in place, though the follow-up will almost certainly not hit as hard as the first. Take-Two plans to release Borderlands 4 on September 23, which is already prompting speculation on when Grand Theft Auto 6 will hit.
With Borderlands 4 now having a solid release date, some expect the long-awaited second trailer for Grand Theft Auto 6 to hit in March, and the final release date to be sometime in fall. This makes some sense; why not schedule the biggest release in gaming in years to coincide with the holiday season? It certainly opens up the best path to potential sales, though it was a safe bet this would be a big seller to begin with.
Is Take-Two a Buy or Sell?
Turning to Wall Street, analysts have a Strong Buy consensus rating on TTWO stock based on 18 Buys and one Hold assigned in the past three months, as indicated by the graphic below. After a 41.51% rally in its share price over the past year, the average TTWO price target of $220.68 per share implies 6.04% upside potential.
