Take-Two Interactive (NASDAQ: TTWO) has hit the jackpot with its latest casino-focused expansion for Grand Theft Auto V's (GTA V) online mode. The game's multiplayer mode had its best-ever monthly player count in December, an incredible feat given that the game has now been on the market for over six years.
Most video game sales are front-loaded, meaning they put up the majority of their sales within the first few months after release and then see relatively quick declines. That's changed somewhat over the last decade, as developers have aimed to move games closer to a services-type model and put heavy emphasis on online multiplayer and downloadable content expansions, but it still holds true. Grand Theft Auto V is the extreme outlier, and continued sales for the base game and strong player spending on its multiplayer mode have helped Take-Two post stellar stock performance.
The company's shares are up roughly 650% since GTA V's release. What comes next?