Take-Two’s Shares Fall in Premarket After GTA 6 Trailer Release
Take-Two Interactive (NASDAQ: TTWO) released its long-awaited trailer for the new Grand Theft Auto (GTA) game, which many expect to become the biggest-ever game launch. Despite its release’s genuine excitement, Take-Two’s shares experienced a decline in Tuesday’s premarket trading, dropping around 4%. A possible reason for this could be that the game’s release is slated for 2025, with no specific date provided.
Market Disappointed by 2025 Release Year Reveal
Shares of Take-Two Interactive tumbled roughly 4% in premarket trading Tuesday, several hours after its video game publisher Rockstar Games revealed the much-anticipated trailer for the new “Grand Theft Auto VI.” The stock initially rose in after-market hours but tumbled later after the trailer revealed the game would be launched in 2025.
“As typical first trailers go, it does not show much other than setting the scene, incredible graphic fidelity and hinting at the game play.”– said Jefferies analyst Andrew Uerkwitz.
Many GTA die-hard fans and Take-Two investors expected an earlier release date. The trailer only hinted that the game will be launched in 2025 without providing specific dates.
“There is still no exact release date, so fears of a delay into holiday 2025 … will immediately ensue.”– he added.
Take-Two’s shares rose more than 52% in 2023, partly driven by the hype the company made when it confirmed last month that the next installment in the Grand Theft Auto franchise is on the horizon.
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Expectations Have Never Been Higher
Released 12 hours ago, the first-ever GTA VI trailer featured a Bonnie and Clyde-inspired duo, marking the first time one of GTA’s main protagonists will be a female. The 1.30-minute-long video showed the duo blitzing their way through a fictional version of Miami, Florida, called “Vice City” – like one of the game’s previous editions.
Saying there are “high expectations” for this game is an understatement.
Rumors that came to light earlier this year suggested that GTA VI will be the most expensive ever created, with many industry participants and gamers expecting Rockstar Games to set new standards with its launch. Some reports revealed that the new version will allegedly cost up to $2 billion and has been developing since 2014.
If this holds true, it would make GTA VI the most costly game and the most expensive entertainment product of all time. But such an immense budget does not come without equally lofty sales expectations.
Uerkwitz said that if the game gets released in February or March 2025, it could deliver Take-Two’s guidance of “about $8 billion in bookings in the financial year 2025 and growth in 2026.”
The trailer already has around 60 million views on YouTube currently. The game will be available on the initial release on the PlayStation 5 and Microsoft’s Xbox Series X and S consoles.
Do you expect GTA VI to break all records in the video game industry? Let us know in the comments below.