Citadel Investment Group has upped its stake in Take-Two Interactive Software, Inc. (NASDAQ:TTWO), according to a filing with the SEC. Ken Griffin’s value hedge fund now owns¬†5,502,059 shares of¬†the company ¬†equal to a¬†6.06% stake. According to the hedge fund’s third quarter 13F, it owned¬†3,035,471 shares. Citadel is now the fourth largest shareholder of the firm. The game maker has been attracting other large investors recently. ¬†Carl Icahn, has boosted his stake in the past several weeks to 13.4 percent of shares outstanding, making him the largest shaeholder. Icahn famous for his¬†activism, has not sought to make any changes yet.
Three key industry themes seem to have emerged this holiday. 1) Holiday is tracking¬†better than expected. Concerns around social competition and/or console fatigue¬†have proven overly conservative. 2) The top 5 holiday games as a group are growing.¬†Long-tail titles are, in contrast, selling exponentially worse as game quality issues are¬†magnified by negative reviews and social media. 3) The Xbox 360 and PS3 consoles¬†continue to be relevant in 100 million households globally. This represents the largest¬†active console installed base in video game history.
2011′s Modern Warfare 3 made by¬†Activision Blizzard, Inc.¬†(NASDAQ:ATVI) holds the record for¬†biggest 5-day entertainment launch grossing $775 million globally. Some analysts believe that Take-Two Interactive Software, Inc. (NASDAQ:TTWO)’s Grand Theft Auto Five¬†(GTA V) can approach and possibly break this record as visibility around the¬†title’s technical scope and launch timing have improved.
2008‚Äôs¬†GTA IV is considered the best video game ever made based on its industry leading 98¬†metacritic rating. It is difficult to predict how GTA V will compare to prior GTA‚Äôs, but it¬†appears the open-world environment will be materially larger than GTA IV, Red Dead¬†Redemption or 2004‚Äôs San Andreas.
In addition, the GTA V‚Äôs graphics are expected to be a¬†quantum leap forward with extraordinary attention to detail on both the macroenvironment¬†and micro-environment level. Finally, the creativity of the game concept¬†including how gamers will jump between three separate protagonists, the thoughtful design¬†of the in-game missions and the potential for multiplayer and co-op modes suggests
Rockstar is aiming to create a truly epic and unrivaled interactive entertainment experience.
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