MoffettNathanson sees GTA Online 2.0 as key to Take-Two stock bull case

Investing.com - MoffettNathanson identifies GTA Online 2.0 as the most important component of the bull case for Take-Two Interactive Software (NASDAQ: TTWO) stock, despite limited public information about the online multiplayer component.

The research firm notes that Grand Theft Auto VI is scheduled for release on November 19 with a Vice City setting and two playable protagonists. The game is expected to sell at a net average selling price above $60, with a manufacturer's suggested retail price of $80 or higher.

MoffettNathanson expects GTA VI full game sales to be front-loaded into one or two years of initial demand. GTA Online has generated recurring revenue for more than 12 years and carries higher development costs than cosmetic items in games like Fortnite, but monetizes on top of the single-player game development effort and adds to profit margins.

The firm assumes GTA Online 2.0 will require purchasing GTA VI and will likely operate alongside the existing version. MoffettNathanson published an analysis examining whether the new version will monetize more effectively than the current GTA Online.

The research piece serves as a reference for evaluating the GTA Online 2.0 opportunity from the players' perspective with market considerations, rather than presenting a new financial model.

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