TAKE TWO: 2K19 Has Exceeded Our Expectations

#1

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

6 Likes
#2

yea, i’m sure less than 1% of 2k players know about vc glitch anyways

1 Like
#3

how does that feel money spenders? :smiley:

#4

To be fair 2k18 was unanimously shat on by pretty much everyone. Was definitely a down year, so there was nowhere to go but up.

#5

Oh I feel really engaged. Player engaged. With all of their player engagement algorithms.

:thinking:

GO Pettit, wide open for 3, BRICK!

:joy:

3 Likes
#6

If 2k is happy because of growing micro transactions doesn’t mean it was a good game. Micro transactions about to get banned, at least in Europe.

Cards were way too OP way too early, every card is basically a 99 ovr now. They gave out a free 20th anniversary card which ruined the market. Rewards are useless. MTU is pointless.

#7

They were genius this year with the tiers. Made GOs super rare and locked them behind Token grinding, where the only way to get tokens was endless TTO and locking Heat Checks and Throwbacks. Then acted as if GOs were still going to be rare by using MJ as the first auctionable GO with a Sig. Limited GO (get that money 2k!) and then said FUCK IT and released a GO CJ McCollum less than 2 weeks after that.

RESPECT.

:face_vomiting:

8 Likes
#8

VC glitchers made all the average Joe’s jealous with their god squads, forcing them to rip packs.

10000 IQ

7 Likes
#9

thats a new one, i like it haha

#10

How many views did those vc glitch videos get on YouTube? Could give us an approximate idea of how many people knew.

#11

Hope micro transactions are banned and we’ll see how the model works then.

2 Likes
#12

The game was a lot of fun to play until the month that POTM Hakeem came out.

#13

Big point. They don’t ban everyone who does “bad things” for this reason.

#14

I matched with tons of Amy squads, basically a human billboard.

1 Like
#15

2k got plenty of cash cows. They don’t need the people who are using the VC glitch, because those people were probably not going to be spending much on the game anyway.

They’re after people with deep pockets and not enough time to farm for VC.

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#16

download%20(4)

#17

Thats not 100% true. Plenty of people with deep pockets got banned using glitch. They did not do it because they lack cash to spend on packs, they simple wanted MORE packs and then on top of that free ones?

#18

Im going to buy 2k20 on sale at this time next year if its just the same thing. Too much time in 2k19 this year for what is a less rewarding experience than I expected.

1 Like
#19

I think you’re mostly right. Glitching is just too time-consuming tho… I gave up long ago.

#20

Yeah I tried the glitch a couple times and couldn’t really get it to go. Didn’t seem worth my time. A lot of time spent not playing the game to get VC that might not pull anything.

2 Likes