GTA IV Rakes in $500 Million in First Week

May 7th, 2008 at 12:00 am
 


gta-IV

The NY Times reports:

"SAN FRANCISCO — Grand Theft Auto IV, the latest iteration of the hit video game franchise, racked up first-week sales of $500 million, Take-Two Interactive, the game’s publisher, plans to announce on Wednesday. The report exceeded the sales expectations of analysts."

Take Two Interactive, the game’s publishers knew that this game was the most anticipated one this year and that saleswould go up at about 5 million copies for the first two weeks.  However, the graphically violent game sold 3.6 million copies on the first day alone and another 3 million the rest of the week tallying record sales of about 6 million copies or $500 million for the first week. 

More from the NYTimes: "The significance of the sales extends beyond buoying Take-Two, a company that has had its share of legal, financial and management struggles in the last few years. The company is the subject of a $2 billion hostile takeover effort by Electronic Arts, which is offering Take Two shareholders $25.74 a share for control of the company. If Take-Two can exceed sales expectations on Grand Theft Auto IV, it has the potential to drive up the share price and force Electronic Arts to raise its offer." 

Take Two said it will not be entertaining any suitors for a buy ou, including EA Game, until after GTA IV was released.  Now that the game has exceeded all expectations and Take Two’s stock is up 29 cents, they could be in talks with EA Games. However, neither companies would confirm that they are indeed discussing the buy out.

This is really grat for Take Two.  Unlike Yahoo who failed to getsome leverage over Microsoft, Take Two can demand as much as they want for the GTA franchise.