Home ETFs Take-Two Stock Slumps On Report Grand Theft Auto VI Leaked Online

Take-Two Stock Slumps On Report Grand Theft Auto VI Leaked Online

by WOOWinvest
0 comment
Take-Two Stock Slumps On Report Grand Theft Auto VI Leaked Online



Take-Two Interactive (TTWO) shares slumped lower Monday following a weekend report that portions of its new Grand Theft Auto VI game were leaked online.

Bloomberg News reported Sunday that a hacker was able to gain access to several videos of gameplay from the highly-anticipated Grand Theft Auto VI, which was made by Take-Two studio Rockstar Games, and posted them to a GTA-focused message board.

The hacker, known as ‘teapotuberhacker’, also claimed responsibility for last week’s security breach at Uber Technologies (UBER) which compromised some of its internal communications systems.

Analysts had been looking for Grand Theft Auto VI to revive a muted near-term outlook for the video game industry after Take-Two cautioned that a pullback in discretionary spending was likely to keep full year revenues in the region of $5.8 billion and $5.9 billion and firmly shy of Street forecasts.

Scroll to Continue

Take-Two shares were marked 5.8% lower in pre-market trading to indicate an opening bell price of $117.01 each, extending their six-month decline to around 17.9%.

Nvidia (NVDA) CEO Jensen Huang struck a bullish tone on the video game sector last month, however, when he spoke with analysts following the chipmaker’s weaker-than-expected second quarter earnings.

Nvidia said revenues from its gaming chips — which are also used in cryptocurrency mining — fell 33% from last year to $2.04 billion, a figure that also matched the group’s early August update and linked to Covid lockdowns in China and the impact of Russia’s war on Ukraine in Europe.

Looking into the current quarter, Nvidia said it sees revenues of around $5.9 billion, plus or minus 2%, compared to the Street consensus of $6.95 billion, with gross margins of around 65%, plus or minus 2%. Gaming weakness, Nvidia said, would be partially offset by firmer demand in its automotive and data center businesses.

“The fundamentals of gaming are strong, and this medium is really doing well,” he said. “Our Gaming PCs are being used for influencers, people sharing content, creating content, vloggers, VTubers, there’s all kinds of new ways of engaging and spending time with video games.”

“Our strategy is to reduce the sell-in, reduce the sell-in this quarter or next quarter, to let channel inventory correct,” he added.

You may also like

Leave a Comment

Our Mission is to help you make better trading decisions by providing actionable investing content, comprehensive tools, educational resources and assist you in making more money in the stock market.

Latest News

Newsletter

Subscribe my Newsletter for new blog posts, tips & new photos. Let's stay updated!

@2022 – All Right Reserved. Designed and Developed by WOOW Invest

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy