The term "GTA 6" has been a Twitter Inc (NYSE:TWTR) trend many times thanks to eager video game fans awaiting the release of “Grand Theft Auto 6.” Fans got their first update on the game from the publisher Friday, sending shares of Take-Two Interactive Software (NASDAQ:TTWO) higher.
What Happened: Rockstar Games, the company behind the Grand Theft Auto franchise and a unit of Take-Two Interactive, shared a community update.
“As we enter our third console generation and with much more to come in 2022 and beyond, here is a look at just some of what’s on the way,” the update reads.
“Grand Theft Auto V” and “Grand Theft Auto Online” are hitting new consoles on March 15. The game will be available on the Playstation 5 and Xbox Series X/S consoles from Sony Group (NYSE:SONY) and Microsoft Corp (NASDAQ:MSFT) respectively.
The updated games will feature new graphics and up to 4K resolution. Players can transfer their progress on the game from the previous console platforms PS4 and Xbox One. “Grand Theft Auto Online” will be made available for free for three months for Playstation 5 payers.
Along with updates on “Grand Theft Auto V,” Rockstar shared one of the biggest video game news items to date of 2022: “We are pleased to confirm that active development for the next entry in the Grand Theft Auto series is well underway.”
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Why It’s Important: Fans have been hoping for a new GTA game for years with “Grand Theft Auto V” the last released game in the franchise back in 2013.
“We look forward to sharing more as soon as we are ready, so please stay tuned to Rockstar Newswire for official details,” the company said.
Now that the game is confirmed, speculation will turn to a release date. Many in the industry have pointed to a release date sometime in 2024 or 2025.
Suggestions have said “Grand Theft Auto 6” could be smaller in size than the previous game and count on continuous updates to add to the game and storyline. This could play a factor in the continued growth of the “Grand Theft Auto Online” platform that has been a major revenue growth driver for Take-Two.
The Grand Theft Auto franchise has sold over 355 million copies. This total jumped 5 million in the most recently reported quarter with “Grand Theft Auto V” still seeing strong sales eight years after being released.
Grand Theft Auto V” has sold 155 million copies worldwide and was the fastest entertainment release to ever hit $1 billion in retail sales.
Each new update to “Grand Theft Auto V” and the online platform has helped boost revenue with the Los Santos update leading to microtransactions increasing 33% from the previous quarter.
What’s Next: Take-Two raised its full-year net bookings guidance to a range of $3.3 billion to $3.4 billion at the time of its second-quarter earnings release. Since that time, the company has announced plans to acquire mobile game company Zynga Inc (NASDAQ:ZNGA).
Investors and video game fans will eagerly be awaiting the company’s next quarterly earnings report, which is right around the corner. The company could provide an update on the timeline for “Grand Theft Auto 6” to help analysts update their forward guidance.
Take-Two is set to report third-quarter earnings on Feb. 7 after market close. Analysts are expecting the company to report revenue of $879.6 million for the third quarter. The company has beat street estimates in the last seven consecutive quarters, according to Benzinga Pro.
TTWO Price Action: Shares are up 7% to $173.81 on Friday.
