Some videogame makers hopeful GTA 6 will cost as much as $100: analyst
Seeking Alpha News (Sun, 26-Jan 12:35 PM)
Some videogame makers are hopeful that Take-Two (NASDAQ:TTWO) will leverage the unprecedented excitement around Grand Theft Auto 6 to price the game up to $100, said analyst and chief executive Epyllion CEO Matthew Ball.
In a wide-ranging presentation, Ball said that some in the videogame industry hope GTA 6 will be priced at $80 to $100, breaking the $70 barrier and helping $50 titles to move up to $60, $60 to do $70, $70 to $80 etc.
Ball later clarified in a post on X that many in the videogame industry hope for $80 if not $99.99. He added that last time the industry bumped prices from $60 to $70, it was "pretty without issue."
Ball said developer Rockstar's mega release "could re-establish packed video game prices after decades of deflation despite rampant cost growth (despite rampant cost growth)."
Consumer interest is reported to be sky-high for the latest Grand Theft Auto game, which is expected to be released in the fall of 2025.
Analysts predict GTA 6 could sell 38 million copies in its first 12 months. At a price point of $69.99 per copy, that would generate approximately $2.7 billion in sales revenue. Including potential online mode revenues, GTA 6's total first-year revenue could easily approach $3 billion.
Grand Theft Auto 6, which Take-Two Interactive (TTWO) plans to release on Sony's (SONY) PlayStation and Microsoft's (MSFT) Xbox consoles, is forecast to top $1 billion in pre-orders before it even becomes available.
Ball noted that in real terms, GTA 6 will be the cheapest-ever GTA, 30% less than its original 2D entries, and 16-24% less than GTA 5 and GTA 5.
"Recall that game prices have never been lower in real terms than they are today - a tough problem to start and worsened by stalled player growth and rising costs," said Ball. He noted that no other leisure activity had seen its products become worth less nearly every year, comparing the fall in videogame prices in real terms to movie and concert tickets.
"There's no need to make the base price of any game $100," said Mat Piscatella, analyst at Circana in a post on X. "You want to make the funnel as wide as possible, while also optimizing launch $. You don't do this be making the base price of a game so high that the funnel narrows."
ETFs that could benefit from a GTA 6 launch include the Amplify Video Game Tech ETF (GAMR), the VanEck Video Gaming and eSports ETF (ESPO), and the Roundhill Video Games ETF (NERD). In the retail sector, GameStop (GME) could attract more attention.
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