If you are hoping for change for NBA2k20, think again. Despite all the issues, the VC glitching, the bans, the current model is still working folks, that’s based on their earnings announced Monday. People are spending record amounts on microtransactions (45% increase over 2K18) and more people are playing 2k19 than 2k18.
Reading this, sounds like Take Two is very happy with 2k19, the investors are happy and so to is the media asking the questions. And it doesn’t sound like the glitches, bans, etc, even made a dent into their biz.
Here’s their CEO Strauss Zelnick on Monday taking about their January-March numbers:
During the fourth quarter, net bookings growth from NBA 2K19 exceeded our expectations, driven primarily by strong recurrent consumer spending. So today, NBA 2K19 has sold in more than 9 million units. During the fourth quarter recurrent consumer spending in NBA 2K grew 79%, and for the full fiscal year, grew 45%. In both periods, recurrent consumer spending in NBA 2K reached a new record and was the single largest contributor to that part of our business.
Over the past year, we’ve seen a substantial increase in average games played, with NBA 2K19 outperforming its predecessor by over 20%. In addition, during the fourth quarter, daily active users outpaced NBA 2K team by 13%, due largely to a consistent and robust content schedule.
We expect that lifetime net bookings from NBA 2K19 will be the highest ever for a 2K sports title, driven by record recurrent consumer spending. The NBA 2K brand continues to expand across a myriad of offerings and we believe that remains a substantial worldwide growth opportunity for the series.
President Karl Slatoff on the microtransaction comparison between Fifa and NBA2k19:
So in terms of – in terms of comparing ourselves to other games in the sport business, specifically the soccer, we don’t really give out those kind of – that kind of data that kind of comparison. But I can tell you this, is that we believe that we have a lot of room there to go in terms of our specific opportunity around NBA 2K and our recurrent consumer spending model.
And it’s important to note that our recurrent consumer spending model is also pretty broad. It’s not just, it’s not just one specific thing, it’s not just card battle for example. It’s other things as well. And we do believe that, that broad monetization strategy gives us a lot of upside in the future. But in terms of comparing ourselves to FIFA for example, we just haven’t done that.
More from Karl on engagement:
And in terms of the recurrent consumer spending model around NBA, if it does monetize, there are a lot of things you can do to drive content. The most important is to drive engagement. And the most important thing is that you want the players engaged. If people are engaged and they are engaged with the game, then the monetization takes care of itself. And whether that’s buying cosmetics or training modes for The Road to 99 or something around Mono 1 matchups.
It’s pretty, it’s well diverse or the card battles. All of these things monetize well and they monetized differently, but that’s not really the point. I think the point is – most people are playing the games and our philosophy is, we want them to play the entire game, not just one mode specifically that may happen to monetize better than another mode. That’s – our focus those is to have people play as much of the game as they possibly can and we worry about the monetization piece later.
You can read the full transcript here: https://www.fool.com/earnings/call-transcripts/2019/05/13/take-two-interactive-software-inc-ttwo-q4-2019-ear.aspx