Take a look at the top 10 best-selling video games of all time:
- Tetris: $520 million
- Minecraft: $238 million
- GTA V: $175 million
- Wii Sports: $82.9 million
- PUBG: $75 million
- Mario Kart 8: $62.25 million
- Red Dead Redemption 2: $50 million+
- Overwatch: $50 million
- Super Mario Bros: $48 million
- Pokemon Gen 1: $47 million
has Minecraft. $ATVI
made Overwatch. $NTDOY
made Mario Kart 8 and Wii Sports. $TTWO
made GTA V and Red Dead Redemption 2.
Even if Take-Two Interactive ties with Nintendo for having the most spots in the Top 10 Best-Selling videogames list, when it comes to development costs, Take-Two Interactive isn't afraid to invest big in game development. For Red Dead Redemption 2, Take-Two spent more than $170 million to develop it (it clearly made a loss on that game). As for GTA V, Take-Two Interactive spent $137 million on developing the game. (Source
While Take-Two Interactive does release multiple games each year, they ensure that each game meets a certain level of quality and craftsmanship. One example of this emphasis on quality is the development process of Rockstar Games, a subsidiary of Take-Two Interactive. Rockstar Games has gained a reputation for taking their time with game development, often allowing their titles to undergo extensive polishing and refinement before release. This approach has led to the creation of highly acclaimed and successful franchises like Grand Theft Auto and Red Dead Redemption, known for their immersive worlds, compelling narratives, and attention to detail. Part of meeting their level of quality and craftsmanship is to delay the release of games when necessary. While it's frustrating for gamers that pre-ordered the game to see a delay in the game that they highly anticipate, Take-Two isn't afraid to delay the release of the game if it's necessary for achieving their desired level of quality.
It's important to note that Take-Two also operates within the commercial realities of the industry. They aim to strike a balance between quality and financial success, as they are a publicly traded company with stakeholders and financial expectations to consider. This means they must also consider factors such as release schedules and profitability while striving to maintain a high standard of quality. So far, $TTWO
is up 3,390.75% since its IPO and up by 670% since the release of GTA V. The massive sales of the videogames is one piece of the profitability of each videogame that Take-Two creates. Take-Two takes monetization to the next level through microtransactions
. As management feels that they're sell their games for less than they're worth
, the microtransactions make up for the discounts that they're already giving consumers.
Personally, I'm not sure what other videogame franchise is there that is successful that maximizing the revenues it can get from its customers than the GTA franchise. Call of Duty and EA has a new game released annually but interest in their games wanes after a year as another game takes the limelight. For Take-Two, their games remain popular years after release and people continue to spend on DLCs on those games. The approach that Take-Two uses in the videogame industry is unique and I think that this strategy will continue to serve $TTWO
well for the long run.
But, they're not like $RBLX, the videogame studio that is able to monetize a game to levels that the large videogame developers envy.