It’s a big day in video games.
Take-Two Interactive said worldwide sales of Grand Theft Auto IV have surpassed $500 million in its first week on the market. More than 6 million games have been sold at a retail value of at least $60 a copy. And id Software announced “Doom 4.”
On its opening day, GTA IV sold 3.6 million units with a retail value of $310 million. Strauss Zelnick, chairman of Take-Two, said in a statement that the game made entertainment history, surpassing the first-day sales of any music title or movie or game.
Microsoft claimed the same thing with the launch of “Halo 3″ last year, a game that sold more than $300 million worth in its first week and $170 million in the U.S. alone in its first week. But that game was notably available only on the Xbox 360, while GTA IV is selling on the Xbox 360 and the Sony PlayStation 3.
From a business view, such sales are astounding and they suggest that the hardcore market for gamers is healthy, regardless of the shift toward casual titles on the PC and the rise of the Nintendo Wii, which appeals to broader audiences beyond young male gamers. GTA IV represents the high tide of the crowd that loves to kick back, defy authority, and play extremely violent crime games. The resiliency of this franchise is amazing, given the U.S. and other parts of the world are stuck in a recession.
That’s great news for Take-Two and its Rockstar division that launched the game. It might force Electronic Arts, which has made a hostile bid for Take-Two, to rethink its $26 a share, or $2 billion offer. Analysts have said that GTA IV sales are baked into the current Take-Two stock price (TTWO: $26.26 today) ; but on the other hand, some analysts have increased their estimates for Take-Two in the past week or so based on higher expectations for GTA IV sales.
Meanwhile, id Software of Mesquite, Texas, announced that it is working on “Doom 4,” the latest series in another high-octane billion-dollar franchise in the video game industry. Judging from past hits, the next Doom game should push the bleeding edge graphics to a new level and present a test as well. Gamers are getting increasingly picky about their games. GTA IV has upped the ante for expectations of a great game. Read the rest of this entry »
