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Take-Two has shared an interesting detail about Grand Theft Auto and where it stands with the rest of the company.
They revealed that the Grand Theft Auto franchise only represented 12.6 % of their net revenue in the last fiscal year. This information is very insightful, but we have to break it down to understand what it means.
What Do We Mean By Net Revenue?
First things first; net revenue is not the same thing as profit. We’re sure Grand Theft Auto and Grand Theft Auto Online are both highly profitable. Take-Two just chose to share a different metric.
As explained in this Investopedia article, net revenue is an adjustment to gross revenue. Gross revenue is the dollar value of the total sales made for the year.
When you take the gross revenue and deduct costs and discounts, you get net revenue.
Let’s use Grand Theft Auto Online on PlayStation 5 as an example. The money the game makes from microtransactions for the year is its gross revenue.
From that number, we deduct the portion of that money that is Sony’s share. If some gamers used gift cards from Gamestop to buy in Grand Theft Auto Online, we deduct Gamestop’s share too.
Net revenue is what we get after all of these additional costs are deducted.
So, What Does This Figure Mean?
As we explained, this figure does not say anything about how profitable Grand Theft Auto or Take-Two Interactive is. Instead, it says something about where Grand Theft Auto is in the company.
12.6 % is roughly 1/8ths of the total net revenue. That means Take-Two makes a lot more money on their other games and endeavors than they do on Grand Theft Auto itself.
And if you think about it, Take-Two definitely has a lot more going on than Grand Theft Auto right now.
Take-Two Beyond Grand Theft Auto (Is Also Big)
For example, under 2K Sports, they have NBA 2K, WWE 2K, PGA Golf Tour 2K, and Top Spin 2K. These are all annual live service games that 2K brings to multiple platforms.
Outside of this, Take-Two also publishes BioShock, Borderlands, Civilization, Mafia, and more. Even if not all of these games have recent releases, they make money from rereleases, ports, and sales for these games.
Mafia: The Old Country made it to this annual report. But Borderlands 4 will actually be added to the report next year.
The flip side to this is that Grand Theft Auto 6 is expected to make Take-Two the most money it has ever seen. We’re sure Grand Theft Auto will become a much bigger part of Take-Two’s net revenue when it comes out. Call it a hunch.
