GTA 5 – The most successful entertainment product of all time

With GTA 5, Take-Two continues to be powerful.  The game is a money printing machine. With GTA 5, Take-Two continues to be powerful. The game is a money printing machine.

The financial site Marketwatch is not primarily concerned with video game news, but has now analyzed the success of GTA 5 more closely and found out: Rockstar’s blockbuster leaves every blockbuster film behind, at least in terms of revenue, and is therefore that most successful and best-selling entertainment product of all time.

With a total of 90 million units sold since its initial release, GTA 5 comes close to that six billion dollars in sales. That puts it well above Hollywood street sweepers like Avatar or Gone with the Wind. The latter is still the highest-grossing film of all time, including inflation.

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Adjusted for inflation, both grossed just under $3 billion. However, unlike the classic film from 1939, Avatar was only able to achieve this number through sales from DVDs and Blu-rays. GTA 5 has taken about as much as the two movie giants together!

DLCs ​​and microtransactions are driving revenue

However, as Marketwatch accurately on the number of six billion dollars comes, the article does not go any further. Sales revenue alone is not enough to achieve this result, even if every copy of GTA 5 were sold at full price.

Therefore, the income from the GTA Online microtransactions be included. By mid-2017, the multiplayer part of GTA 5 had already made more than a billion dollars. In addition to the continued strong sales of the main game, he makes a significant contribution to the income from Rockstar’s box office hit. However, this also entails a certain dependency.

We peeked into the annual reports of the last few years, which underline this: GTA products had their fill in the 2017 fiscal year alone 38.2 percent of company sales turned off. In other words: Without the GTA developed by Rockstar, Take-Two would suddenly lose more than a third of its value.

GTA Online – View screenshots from the Smuggler’s Run update

GTA 5 remains Take-Two’s cash cow

Overall, however, the dependency is falling: In the 2016 financial year, there was still no 54.5 percent of total sales of the company on GTA products. It should be noted that the company’s sales rose sharply by 26 percent compared to the previous year.

Nevertheless, GTA 5 remains the cash cow. Marketwatch draws the comparison with Avatar again and clearly raises it higher return on investment that the Rockstar Game achieves. That means: For $265 million invested, it has made the said $6 billion to date, while Avatar has only yielded half that for a similar investment of $237 million.

According to Marketwatch, that’s on a strong competitive advantage ofvideo games attributed. They are constantly being further developed, while films with the one-time cinema release are usually already completed. This is one reason why Grand Theft Auto 5 can achieve such lasting success.

Although the game is also a high-end title from a technical point of view, the content that Rockstar continuously publishes for GTA Online makes sure ringing tills. This not only sets GTA apart from films, but also from other game series, as Marketwatch notes.

So realistic is GTA 5 - 13 hidden details in the video


So realistic is GTA 5 – 13 hidden details in the video

So other big companies like EA and Nintendo with Battlefield and Super Mario rely on clearly shorter cycles between new product releaseswhile Take-Two and Rockstar, to put it bluntly, rely on milking a single cow for an extended period of time.

In general, this works much better with video games than with films, as Marketwatch emphasizes. The interactivity makes it possible for developers and publishers to track user behavior data and develop content based on this. Ideally, this is how a constant stream of income, which could partly be used to further finance the development. A kind of »eternal cycle«, so to speak.

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