Yesterday we reported on an SEC submitting that pointed to drastically elevated spending (greater than double) for Take-Two throughout fiscal 12 months 2024 (12 months interval ending March 31, 2024). Analysts estimate that the huge advertising and marketing spend was associated to the deliberate launch of considered one of Take-Two’s greatest tentpole franchises: Grand Theft Auto VI. The writer, nonetheless, is now denying these stories, saying that its FY2024 price range estimates—and extra broadly, the SEC submitting for 5 years price of estimates—are for third-party obligations unrelated to Grand Theft Auto VI or any first-party advertising and marketing budgets inside the firm. That would come with something from Rockstar, which is owned by Take-Two.
In an update from VentureBeat’s Jeff Grubb, he mentioned that Take-Two reached out to appropriate the earlier report:
Take-Two clarified to GamesBeat that this marketing-obligation metric refers solely to its contracts with third events. It doesn’t mirror its advertising and marketing price range for inner studios like Rockstar Games. That means this doesn’t point out a timeline for Grand Theft Auto VI. I apologize for this deceptive error.
TTWO reached out this morning to make clear that this advertising and marketing obligation is solely for third-party contracts. It doesn’t mirror its advertising and marketing commitments for inner studios. That means this offers no perception on GTA VI. I apologize for the error.
A correction was also issued by GamesIndustry.biz (which prompted the above correction from Grubb):
Take-Two consultant informed GamesIndustry.biz that the desk within the 10-Okay displays advertising and marketing commitments made to third-party firms. As Rockstar is an inner Take-Two studio, that undermines the notion that the reported advertising and marketing commitments can be associated to the following Grand Theft Auto.
It’s nonetheless notable that advertising and marketing spend is making such a drastic leap throughout that point, and Take-Two clearly has some massive issues deliberate for that 12 months, although this now relates particularly to third-party commitments and doesn’t in any approach point out a related timeline for Grand Theft Auto VI. Still, it’s curious that the analyst within the unique report talked about the identical filings predicting the highway to launch for Red Dead Redemption 2, as this metric would have arguably solely utilized to third-parties in previous years as effectively. Perhaps it’s merely coincidence that the corporate additionally noticed elevated third-party spending within the 12 months it was making ready to launch RDR 2. At any charge, it appears to place to mattress any hints about Grand Theft Auto VI for now, till the following alleged rumor concerning the sport rolls round.