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This statistic highlights Take Two Interactive’s Revenue by Segment, split across Products and Services, reported on a quarterly basis from Q1 2019 onwards.
The company derives revenue primarily from the sale of interactive entertainment content, principally for console gaming systems and personal computers, including smartphones and tablets. Their interactive entertainment content consists of full game software products that may contain offline gameplay, online gameplay, or a combination of offline and online gameplay. They may also sell separate downloadable add-on content to supplement our full game software products. Certain software products provide customers with the option to acquire virtual currency or make in-game purchases.
|Segments||Q3 2021||Q2 2022||Q3 2022||Revenue Contribution in Q3 2022|
|Service and other||578.83||609.03||604.59||66.93%|
(All figures in millions, except percentages)
Take Two Interactive’s total revenue increased from $860.89 million in Q3 2021 to $903.25 million in Q3 2022, indicating a rise of 4.92% growth on a year-on-year basis. Take Two Interactive’s total revenue increased from $860.89 million in Q3 2021 to $903.25 million in Q3 2022, indicating a rise of 4.92% growth on a year-on-year basis. It increased by 5.25% compared to $858.20 million earned in Q2 2022.
Take Two Interactive generates revenue from the following segments:
Services and Others
Until the product is a sold-through customer to the end-user, the recognition of revenue allocated to game-related services does not begin. Revenue is recognized ratably over an estimated service period for amounts allocated to the game-related services. Service and other revenue is primarily revenue from game-related services, virtual currency transactions, and in-game purchases which are recognized over an estimated service period.
The company depends on servers and Internet bandwidth to operate its digital services with online features. When downloadable content is increased and new features are added to online services, then the estimate of the service period gets affected for the user playing patterns.
Take Two Interactive’s revenue from Services and others increased by4.45% from $578.83 million in Q3 2021 to $604.59 million in Q3 2022 on a year-on-year basis. However, it declined by 0.73% on a quarter-on-quarter basis, i.e. from $609.03 million in Q2 2022 to $604.59 million in Q3 2022. The revenue declined by $4.44 million from the previous quarter. This segment contributed to 66.93% of the company’s total revenue in Q3 2022.
The company develops and publishes products principally through Rockstar Games, 2K, Private Division, and T2 Mobile Games, which includes Socialpoint, Playdots, and Nordeus. Their products are designed for console systems, including but not limited to, Sony’s PlayStation®4 (“PS4”), PlayStation 5 (“PS5”), Nintendo’s Switch™ (“Switch”), Xbox Series X|S (“Xbox Series X|S”), Microsoft’s Xbox One® (“Xbox One”), mobile including smartphones, tablets (“Mobile”) and personal computers (“PC”), and are delivered through physical retail, digital download, online platforms, and cloud streaming services.
Product revenue is primarily the portion of revenue from software products. These software products revenues are recognized when the customer takes control of the product (i.e., upon delivery of the software product). Sales of the company’s full game products are also seasonal. The product’s peak demand typically occurs in the fourth calendar quarter during the holiday season.
Take Two Interactive’s revenue from Product increased by 5.89% from $282.06 million in Q3 2021 to $298.67 million in Q3 2022 on a year-on-year basis. It also grew by 19.86% on a quarter-on-quarter basis, i.e. from $249.17 million in Q2 2022 to $298.67 million in Q3 2022. This segment contributed to 33.07% of the company’s total revenue in Q3 2022.
About The Company
Take-Two Interactive is a leading, marketer publisher and developer of interactive entertainment for consumers around the globe. They are registered in NYSE under the ticker symbol TTWO.
The company’s core strategy is to capitalize on the popularity of video games by developing and publishing high-quality interactive entertainment experiences across a range of genres. They focus on building compelling entertainment franchises by publishing a select number of titles for which we can create sequels and incremental revenue opportunities through virtual currency, add-on content, and in-game purchases.
They have created, acquired, or licensed a group of highly recognizable brands to match the broad consumer demographics that they serve, ranging from adults to children and game enthusiasts to casual gamers. Another cornerstone of their strategy is to support the success of products in the marketplace through innovative marketing programs and global distribution on platforms and through channels that are relevant to the target audience.
On September 4, 2020, the company completed the acquisition of privately-held Playdots, Inc. (“Playdots”) a free-to-play mobile game developer based in New York.
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