Take-Two was hoping for a monster first week from their landmark franchise, Grand Theft Auto. Did they get it?
The NYT reports that Take-Two (TTWO) will announce today that GTA IV has sold 6 million copies in its first week, generating $500 million at retail. That works out to an average of $83 per unit, but GTA IV retails for $60 in the U.S. So we’re assuming that a good chunk of those sales came from overseas.
Those are eye-popping numbers. The real question: Exactly how good are they? The NYT says that it’s about 20% better than analyst predictions of 5 million units. We’d previously reported, incorrectly, that analysts had higher expectations.
Today we’ll see what the market thinks. TTWO shares have been hovering in the $26 range for the last week; Electronic Arts (ERTS) has offered $25.74 for the company. Take-Two management has long argued that Wall Street didn’t understand what a hit GTAIV would be. When they did, the argument held, they’d bid the shares up. Time to find out.