We saw last quarter 2K was glowing about NBA2K20, but that was through September, before the issues were apparent. And sure enough,
From the mouth of CEO Strauss Zelnick on Friday:
Unit sales of NBA 2K20, the latest installment in our industry leading basketball series, had outperformed our expectations and the title has sold in over 8 million units to-date, up slightly over NBA 2K19 in the same period. In November, the title was released for Google Stadia. In addition, engagement with NBA 2K20 is reaching all-time highs with average daily active users growing and MyTeam users up more than 35%. In addition, NBA 2K20 has generated more than 276 million views on YouTube and over 8 million hours of content watched on Twitch across hundreds of channels.
So they sold a few more 2K20’s than 19s, though I think China may have helped in that this year. The YouTube and Twitch #s are just filler. “Social proof” as they say just to deflect from issues.
And those issues…
While this increased engagement led to strong growth in the current consumer spending in certain modes of NBA 2K20, we have not experienced the same positive benefits across the entire game due to some specific design changes which we plan to address in future versions of NBA 2K. Because of this, we no longer expect lifetime net bookings for NBA 2K20 to be a record for the series. However, we continue to expect recurrent consumer spending for the NBA 2K20 franchise, to grow in the strong double-digits for fiscal 2020. Taking creative risk is part of Take-Two’s DNA as we constantly strive to improve the game-play experience for our audiences. More often than not, this results in enhancing our growth which is reflected in the substantial long-term outperformance of NBA 2K.
BAM! “We have not experienced the same positive benefits across the entire game due to some specific design changes”…Uh oh, they F’d up something.
Strauss then goes on to explain the dip:
So the high class problem is that we have said in our revised outlook that we thought NBA 2K20 would set another record for net bookings. And then now we are realizing that to say we don’t expect to set another record despite its very strong unit sales in the grade engagement and that’s because one of the parts of the online version has recurrent consumer spending coming in somewhat lower than we had expected. And that’s related to a design feature and one that we can address going forward, but it’s not only a hiccup, because our goal is first and foremost to captivate and engage consumers and our engagement is up and our unit sales are up.
And that means now and then we may fall short of setting a record, but failing to set a record isn’t exactly a problem when you have a title that is massively successful as NBA 2K20 is. It’s an incredibly profitable title for the firm. Owing incidentally, recurrent consumer spending for the franchise will actually be up in the fiscal year in solid double-digits. So the engagement is strong, the spending is strong and at the same time, there were some design changes that didn’t optimize specific recurrent consumer spending in certain modes and we are confident we will be able to address those.
So their #s are in fact down. People are not spending as much as before. And they know it, the stock market knows it too: https://www.marketwatch.com/story/take-two-stock-plunges-after-earnings-show-disappointing-forecast-2020-02-06
They didn’t say what exactly it was specifically that caused a drop in $$$, they said they know what it is and how to fix it.
Park, MTU, PNO? They changed something from last year to this year and that has dropped $$$. And it’s getting changed back.
Lol…they F’d themselves.