![]() With an expected $70 list price and microtransactions from the online game, Sheridan expects about $327 million annual operating profit from unit sales and about $372 million of operating profit from microtransactions, or about $699 million total based on about 170 million units over nine years like “GTA5,” a 75/25 digital versus physical split in sales, about $125 in annual player transactions and about a $2 billion estimated budget. “Meanwhile, assuming the unit sell-through is 245mm units but at the same ~$2bn budget, the implied EPS is ~$11.75 (nearly ~$1.70 more than the base case of $10.04), demonstrating significant leverage with every unit sold.” “Assuming the budget is ~$500mm (nearly 2x GTA V budget) but maintaining 170mm unit sell-through, the implied EPS is $10.44 (~$0.40+ more than our base case),” Sheridan said. Read: The most lucrative videogame in history is getting a sequel, and boosting damaged game stocks “Given that the estimated budget was an input based on a press article from this incident (and is significantly higher than the ‘GTA V’ budget of ~$250-300mm), we flex that variable up and down as well as unit sales in order to assess various EPS outcomes based on those two components,” Sheridan said.Īfter updating his projections, Sheridan sees earnings from “GTA6” coming in at more than $10 a share, which would imply more than $1.7 billion based on Take-Two’s current shares outstanding. Take-Two’s Rockstar Games studio confirmed that “GTA6” was in active development back in February. But previously, there were rumors that the game will arrive in 2023 and is set in Miami. ![]() ![]() It is also said that the game is set in a modern-day version of Vice City. With that in mind, Sheridan said unit sales and the estimated budget are two key variables in projecting the profitability of “GTA6,” and the hack provided some clues about them. According to the latest gossip, GTA 6 is expected to release sometime in 2025. In-depth: ‘Grand Theft Auto 5’ has made more money than any other single media title in history ![]()
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